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SBA PPP loans approved in all states, Great Plains lead per capita distribution

April 16, 2020

SBA released data on the Paycheck Protection Program (PPP) this week for all approved loan activity through April 13 and told banks Wednesday night that the program is nearly out of funds. The data show more than 1 million loans worth more than $247 million approved across all states and territories. While the average loan is $239,000, 70 percent of the loans are less than $150,000. On average, states are seeing 3.1 loans per 1,000 population and nearly $747,000 per 1,000 population. While Texas (88,434) has seen the most loans, many Great Plains states are leading in per capita terms, with North Dakota (10.8 per 1,000 population), Wyoming (9.9), Montana (9.7), Nebraska (9.6), and South Dakota (9.0) comprising the top five. State data is in the table below. Looking at NAICS subsectors, construction is receiving the most loans with nearly 14 percent of approved funds, followed by professional services and manufacturing (each at 12 percent). According to SBA data (xls), accommodations and food services accounted for nearly 20 percent of 7(a) loan (the parent program of the PPP) volume over the past three years, but are just 9 percent of the PPP approved PPP loan volume.

SBA opens door for VC-backed companies to access PPP loans

While the original $349 billion PPP authorization is nearly depleted, congressional consideration of a new $251 billion for the program could make a recent rule change still important for venture-capital backed companies. As noted previously in the Digest, the National Venture Capital Association, SSTI, and many other organizations have written to the administration asking for assistance to these firms. At issue is SBA’s affiliation rules, which dictate that certain ownership structures may result in every company being treated as affiliate entities of the applying business’ shareholders. Thanks to an updated FAQ, SBA has provided a partial solution. The FAQ clarifies that small businesses do not have to consider the investments of minority shareholders as affiliates, so long as those shareholders waive any veto rights, or negative control convents, conveyed by their shares. Many startups will remain ineligible under this procedure, but at least companies with active minority owners may be able to access PPP loans.

sba, small business, debt, startups