PPP loan application deadline extended until August 8

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If you haven’t completed a Paycheck Protection Program (PPP) loan application by the previous deadline, you’re in luck. On July 4, President Donald Trump extended the deadline for PPP loan applications by more than a month.

The new deadline for PPP loan applications is August 8.



PPP loan deadline extended until August 8

The previous June 30 deadline came and went, but there was still over $ 130 billion available for businesses in the United States. The PPP loan was created in the wake of the COVID-19 pandemic. Its goal was to keep employers connected to their employees for the duration of government-ordered business closures.

PPP loans can be completely canceled if the companies that receive the money spend it within a certain time frame and on limited business expenses, namely the payroll.

READ MORE: PPP Loan FAQs

PPP loan data

So far, the 5,461 banks and other lenders participating in the PPP loan program have approved approximately 4.9 million business loans across the country. More than $ 521 billion has been borrowed, according to the US Small Business Administration.

Who gets these loans? The PPP loan program came under some criticism, mainly when it was revealed that some large companies were approved for PPP loans. The program was designed specifically for the millions of small businesses across the country.

The SBA and the Treasury Department were hoping to fill the loopholes that allowed a company like the Los Angeles Lakers to secure a P3 loan when a second round of funding was approved.

According to the SBA, health care and social assistance companies got the most PPP loans, based on the amount borrowed.

Here are the top 10 NAICS industry sectors based on PPP loan amounts:

  1. Health care and social assistance ($ 67.3 billion)
  2. Professional, scientific and technical services ($ 66.4 billion)
  3. Construction ($ 64.5 billion)
  4. Manufacturing ($ 54 billion)
  5. Accommodation and food services ($ 42 billion)
  6. Retail trade ($ 40.3 billion)
  7. Other services ($ 31.1 billion)
  8. Wholesale trade ($ 27.7 billion)
  9. Administrative, support and waste management and remediation services ($ 26.4 billion)
  10. Transportation and warehousing ($ 17 billion)

California companies have received the most PPP loan financing, raising $ 68.2 billion so far. Texas has the second-highest total at $ 41.1 billion and New York is third with $ 38.3 billion.

PPP loan size

Of the nearly 5 million PPP loans approved (up to June 30), some amounted to more than $ 5 million. In fact, the SBA reports that 4,840 loans above this amount have been approved. But that is only a tenth of the loans approved. And the over $ 33 million approved in these loans is about 6.5% of the amount borrowed.

The overwhelming majority of PPP loans have been for $ 50,000 or less. The 3.2 million loans of this size represent 66.8% of all approved PPP loans.

The SBA says the average PPP loan is $ 107,000. And 86.5% of all PPP loans were less than $ 150,000.

Image: United States Small Business Administration



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