How many jobs have been saved thanks to PPP loans? – Councilor Forbes
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Curious about which states have seen the most jobs saved thanks to loans granted by the Payroll Protection Program to businesses during the coronavirus pandemic? I wonder which ones performed poorly in terms of jobs saved as a percentage of the population? We analyzed data from the United States Small Business Administration (SBA) on PPP loans to answer these and other questions below.
As of June 30, the SBA had processed about 4.9 million loans worth nearly $ 522 billion. More than 5,400 lenders have participated in the program designed to help small businesses keep their doors open and their workers employed during the pandemic.
In total, these loans have supported around 51 million jobs. The average loan size was $ 107,000 and 86.5% of all loans were less than $ 150,000.
Utah had the highest percentage of jobs retained as a percentage of the population. Beehive State has a population of around 3.2 million and SBA data shows that PPP loans have saved nearly 800,000 jobs.
More than 50,000 Utah businesses have benefited from PPP loans, saving 796,850 jobs, according to the SBA. More than 6,700 businesses received loans over $ 150,000, while 41 businesses received loans between $ 5 million and $ 10 million, the largest amount disbursed under the PPP program.
Are companies benefiting from it?
Of those 41 Utah companies, two of them appear to be related. The two sizzling Caesars, SARL and Sizzling Platter, LLC have received loans and have the same mailing address. Sizzling Platter is a restaurant management chain with hundreds of franchises around the world including Sizzler, Little Caesars, Red Robin, Wingstop, and Dunkin Donuts. Sizzling Caesars is registered as a separate entity using the same primary address as Sizzling Platter.
According to the most recent publicly available data, Sizzling Platter has 5,000 employees at its various sites and generates sales of $ 201.1 million. Sizzling Caesars has five employees and generates $ 103,346 in sales. Still, the two companies claimed exactly 500 employees on their PPP loan applications, according to SBA data.
PPP eligibility rules state that an employer who has more than 500 employees may be eligible to apply for a PPP loan if that business meets the SBA’s “small business” size standards or has a tangible net worth of no more than $ 15 million in March. on January 27, 2020, and an average net income of $ 5 million or less after federal income taxes (excluding losses carried forward) for the two full years preceding the date of the claim. The amount of PPP loans is based on the payroll, with the maximum loan amount capped at 2.5 times your average monthly salary costs.
In five states or territories, SBA data shows that at least 20% of the population has kept their jobs thanks to P3 loans: Utah, the District of Columbia, North Dakota, South Dakota and the Montana. In each state, PPP loans have saved at least 11% of jobs. The American Samoa Territory said only 6.7% of jobs have been retained through PPP loans.
In total, 14 states recorded job savings of 1 million or more, led by California with 6.51 million jobs saved. The most populous state in the country, California ranked 21st in jobs retained as a percentage of population.
About 4,750 of the companies that received $ 150,000 or more in P3 funds reported that no jobs were retained as a result of receiving P3 funds. This is likely due to applicants leaving the issue of retention blank in their application, lender clerical errors, or a combination of the two.
Other notable statistics on California jobs saved through P3 loans include:
- The San Francisco-based Burning Man Project, known for its boisterous annual parties in the Nevada desert, has received between $ 2 million and $ 5 million in funding, but has reported no jobs saved.
- Musician Kanye West’s clothing and footwear company Yeezy has said 106 jobs will be saved thanks to its $ 2-5 million PPP loan.
- The Jelly Belly Candy Company, maker of jelly beans, claimed that its PPP loan of between $ 5 million and $ 10 million would save exactly 500 jobs.
- Prosper Marketplace, an online marketplace for personal loans, himself received a loan of between $ 5 million and $ 10 million, and said that 200 jobs would be saved.
The most populous states also generally reported the highest number of jobs saved through P3 loans. However, several of the most populous states reported a lower percentage of jobs retained as a percentage of the population than their larger peers, most notably North Carolina (1.25 million jobs saved, 11.9% of the population ), Virginia (974,000, 11.4%) and Washington. state (907,000, 11.9%). Compare that with California (6.51 million, 16.5%), Texas (4.52 million, 15.6%) and Florida (3.22 million, 15%).
The original deadline to apply for a PPP loan was June 30, but Congress extended the deadline and lenders resumed applications on July 6. The new deadline for submit a request is August 8. SBA data is subject to change based on this extended loan period and / or any other adjustment.
Our sister company, Forbes Media, has received approval to receive between $ 5 million and $ 10 million in PPP funds, according to SBA data.