Trump Signs Extension for Payroll Protection Program

Daniel Fowler
July 7, 2020

Why it matters: This data should help Congress and others analyze the effectiveness of PPP, which so far has disbursed over $500 billion, as debate begins on a new federal stimulus package. Those include loans taken by large or publicly listed companies, which attracted fierce criticism for breaching the spirit of the rules, as well as duplicate loans issued to borrowers that applied with more than one lender or companies that decided they did not want or need the loan after all.

Of the loans worth more than $2 million, around 85 percent were approved in the first round of lending.

The funds reached a wide swath of recipients - more than $67bn for the healthcare and social assistance sector, $64bn-plus for construction businesses, $54bn for manufacturing and, at the smaller end, more than seven billion dollars for religious organisations, the initial data summary showed.

Dallas-based TGI Fridays, which has around 500 restaurants in the US, obtained between $5 million and $10 million in loans from the program.

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Designed at the onset of the COVID-19 pandemic, the Paycheck Protection Program was designed as a lifeline for many small businesses that were hit hard by the coronavirus.

The PPP program is helping businesses that were considered nonessential to recover.

In Lexington, five businesses received loans larger than $5 million - Blue Diamond Mining, Ramaco Resources, Rhino Energy, the Roman Catholic Diocese of Lexington and S&S Firestone. Critics worry the U.S. Small Business Administrator's office, which administers the loan, may continue to experience challenges in fairly distributing the funds. Of the loans that were less than $150,000, only 44 percent were approved in the first round, according to a Herald-Leader analysis of the data. It received a loan of between $1 million and $2 million.

The SBA's inspector general found in May that some rural, minority and women-owned businesses may not have received loans due to a lack of prioritization from the agency.

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