Much of PPP loans have gone to large companies, data shows
About 600 companies, including dozens of national chains, have reportedly received up to $ 10 million in paycheck protection program loans.
WASHINGTON – Editor’s Note: The related video above was posted on August 4.
The release of data on paycheck protection program beneficiaries found that much of the money went to large companies, with only a small number of companies receiving about a quarter of the money distributed.
The Small Business Administration recently provided information on more than $ 5 million in loans in response to Freedom of Information Act demands and months of legal battles.
The PPP has enabled companies to obtain loans to keep their workers on the payroll. The loan was canceled if the company met certain conditions to avoid layoffs amid the coronavirus pandemic.
According to The New York Times, about 600 companies, including dozens of national chains, have obtained loans of $ 10 million, the maximum amount available under the program of $ 525 billion. Only 1% of borrowers received more than a quarter of total funds distributed, or about $ 143 billion in loans of $ 1.4 million or more.
The Washington Post reports that even though the Treasury Department and SBA officials said the PPP mainly helps small businesses because more than 87% of loans were under $ 150,000 in August, data shows that more than half of l money in the same time window went to bigger companies. Only 28% were loaned for amounts less than $ 150,000.
NBC News found that companies operating out of Trump Organization properties, as well as properties owned by Kushner’s family, also benefited from the program. The report says more than 25 loans worth more than $ 3.65 million have been made to companies with addresses in the Trump and Kushner properties.
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Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin have urged Congress to approve COVID-19 relief funds without further delay. Powell told the House financial services committee on Wednesday that providing economic support was “very important.”
When asked what Congress should include in a relief bill that could be passed in the December session, Mnuchin said his priority would be an authorization for the Treasury to use $ 140 billion of remaining funds to provide small businesses with a second round of PPP. ready.
The Associated Press contributed.
Editor’s Note: A previous version of this story indicated that Trump Organization and Kushner Companies were among those who received PPP loans. The Trump Organization has not received PPP loans, but tenants paying rent on properties owned by the Trump Organization as well as the Kushner companies have, according to NBC news.