Research

Tracker: Paycheck Protection Program Loans

Introduction

The following tracker uses the most recent data from the Small Business Administration (SBA) to chart the allocation of Paycheck Protection Program (PPP) funds.

Context

In the face of the economic and social disruption caused by the coronavirus, Congress has enacted three economic relief packages. With an estimated $2 trillion price tag, the third package, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, is perhaps the largest and most significant federal emergency aid bill in U.S. history.

The CARES Act set aside $349 billion for the relief of small businesses, to be administered by the SBA in the form of the PPP. The SBA commenced the PPP on April 3, 2020, and closed the program on April 16, 2020, on the exhaustion of the $349 billion appropriated by Congress (Round One). Congress later provided an additional $310 billion for the PPP in H.R.266, the Paycheck Protection Program and Health Care Enhancement Act (Round Two). This brought the total funds available to the SBA and the PPP to $659 billion.

Detailed below are the total number and value of PPP loans and a resulting analysis, including data on lenders and state recipients.

Data in the below tracker are provided as of May 16, 2020. All data have been sourced from the SBA, which provides program information for the PPP here. This tracker will be updated with PPP data as the SBA makes it available, typically on Fridays.

Summary Data

The tables below illustrate the total number and value of PPP loans disbursed to date in addition to the average value of a PPP loan and the total number of SBA-approved lenders.

The key implication of this most recent SBA report is that PPP funds disbursed has decreased rather than increased. The SBA notes: “Totals reflect both rounds of PPP funding and cancellations through the report date. Cancellations do include duplicative loans, loans not closed for any reason, and loans that have been paid off.” It seems likely that the key driver of this difference is firms returning PPP funds received due to public pressures.

As of 5/16/2020 the SBA has disbursed $513 billion of the $659 billion so far appropriated by Congress to this program, with 22 percent of PPP funds remaining available to the program.

These data are represented in graphical form below.

State-Specific Data

All reports issued by the SBA on the PPP to date have included state-specific data on number and value of PPP loans. Provided below are the total number of loans and total value of loans provided to the top five state recipients of PPP support. These data together also produce the average value of a state PPP loan.

Surprisingly, from 5/8/2020 to 5/16/2020, the total loan value to go to the top five recipients of PPP funding all five of those states decreased while at the same time the total number of PPP loans in all five of those states increased. Any decrease is once again likely representative of PPP funds returned, but as a whole this is an extremely positive sign that the PPP program is backing more loans at a lower value to more recipients.

These (cumulative) state-specific average PPP loan values can be contrasted with the (cumulative) national average PPP loan value, which as of May 8, 2020, is $118,234 (a decrease from the previous week’s $147,306).

Lender and Loan Size Data

In Round Two the SBA has also provided a detailed breakdown on the lenders participating in this program and the loan sizes issues. Since the 5/16/2020 report this data has been presented cumulative of Rounds One and Two.

The SBA’s data shows an astonishing decrease in the number of banks with over $50bn in assets participating in the PPP program. Previous data as of 5/8/2020 showed 148 banks in this category (albeit only as of Round Two). This number has decreased by two thirds. Again, this makes some intuitive sense. Public pressure to return PPP funds has been on the largest recipients of PPP funds, typically the largest firms in the PPP program, and presumably serviced by the largest banks.

As of 5/16/2020 loans under $50K represent 64 percent of total PPP loans, and 10 percent by value. Loans over $5m are less than 1 percent of total PPP loans, and only 7 percent by value.

Round One Specific Data

In Round One of reporting on the PPP, the SBA provided a detailed breakdown of PPP recipient by industry. This data has not been provided in Round Two.

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