Less than a month after passing the CARES Act, small businesses have exhausted the federal government’s $350 billion fund to soften economic shocks.
And who came out on top? According to one analysis, it’s Nebraska.
The 18,565 approved loans totaling $2.7 billion dollars cover three quarters of the state’s payroll for businesses with less than 500 employees. The money comes from the Payment Protection Program which gives employers forgivable loans to keep employees working and help with business expenses.
Here are state approvals as a percent of eligible payroll. Given the industry data above, some of these results make sense. The Dakotas–heavy oil/mining states–are well subscribed, for example. But… /8 pic.twitter.com/ms4dBWntfJ
— Ernie Tedeschi (@ernietedeschi) April 15, 2020
Neighboring states like North Dakota, South Dakota and Kansas ranked similarly to Nebraska, according to 2019 payroll analysis from financial and investment research firm Evercore ISI. States like California and New York received as much as nine times Nebraska’s amount. However, those totals covered less than a quarter of their small business payrolls.
As the federal government looks to refill the depleted fund, politicians have taken note of the disparity in received funds.
Can someone explain to me how Texas has been approved for $1 billion more in SBA loans – & more than 30,000 loans!- than California despite our economy being $1 trillion larger & California being much harder hit by COVID-19? pic.twitter.com/FuTCedqkGO
— Jackie Speier (@RepSpeier) April 15, 2020