SBA: PPP Saved Roughly 84% of All Small Business Jobs, Despite Democrats Delaying Funds
Washington, D.C. (PPD) — The Small Business Administration (SBA) reported on Monday the Paycheck Protection Program (PPP) saved more than 50 million jobs. With small businesses employing 59.9 million across the country, that represents upwards of 84% of all their employees.
According to the SBA data covering the period ending June 30, 5,461 lenders processed some 4,885,388 PPP loans totaling $521,483,817,756. PPP loans supported 51.1 million jobs and one quarter (13 million) were in Historically Underutilized Business Zones (HUB Zones).
“The PPP is providing much-needed relief to millions of American small businesses, supporting more than 51 million jobs and over 80 percent of all small business employees, who are the drivers of economic growth in our country,” said Secretary Steven T. Mnuchin. “We are particularly pleased that 27% of the program’s reach in low and moderate income communities which is in proportion to percentage of population in these areas.”
Across all 50 states, 72% to 96% of estimated small business jobs were covered by PPP loans. Low and moderate income received 27% of the funds, representative of the 28% share of the population.
“The average loan size is approximately $100,000, demonstrating that the program is serving the smallest of businesses,” Secretary Mnuchin added.
The total amount of funds remaining — approvals net of cancellations as well as loan amount increases, decreases, and reinstatements plus the $10 billion allocated for Community Development Financial Institutions (CDFI) — was $131,914,229,876.
“The PPP is an indisputable success for small businesses, especially to the communities in which these employers serve as the main job creators,” said SBA Administrator Jovita Carranza. “In three months, this Administration was able to act quickly to get funding into the hands of those who faced enormous obstacles as a result of the pandemic.”
As People’s Pundit Daily (PPD) previously reported, Democrats’ attempts to leverage the crisis to obtain concessions for unrelated progressive agenda items cost the U.S. economy valuable time.
First, the initial Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, was stalled by Democrats demanding a laundry list of last-minute, leftwing provisions. Then, Senate Democrats blocked the first attempt by Senate Republicans to replenish the PPP to the tune of $251 billion.
The result of the latter was a 12-day delay, and small business and their workers have been paying the price. The PPP exhausted its funding one day before the two-week mark after banks began taking applications.
“The jobs numbers released last week reinforce that PPP is working by keeping employees on payroll and sustaining millions of small businesses through this time,” Administrator Carranza added.
The U.S. Bureau of Labor Statistics (BLS) reported last week the U.S. economy added 4.8 million jobs in June, the largest gain ever recorded. The ADP National Employment Report found private sector employment increased by 2,369,000 jobs in June and the prior month was revised to show historic job gains.