Who got the money from the first round of PPP funding?

IMPORTANT UPDATE FOR 2021: Congress has approved an extension of the PPP loan program until March 31, 2021, including “second draw” PPP loans for businesses that received PPP funding in 2020. Start your PPP loan application now!

The Paycheck Protection Program (PPP) was so popular, it ran out of its initial funding on April 16th, 2020, and Congress voted to refund it with an additional $300 billion in the summer of 2020. Since the COVID-19 pandemic’s immense devastation to small businesses continues into 2021, Congress voted for an additional relief package in December 2020, which renewed the PPP loan program and extended the deadline for application to March 31, 2021.

We’ve been helping small businesses across the country, and of all shapes and sizes, apply for this program. We’ve celebrated with those who received much-needed funds, and we’ve felt the frustration of those who are still waiting.

Get your PPP loan or second draw PPP loan through Womply! Womply has helped over 200,000 businesses get their PPP funding. It’s free to apply for a PPP loan, and Womply can help connect you with an SBA lender that’s right for you! Start your PPP application.

One of the top questions on many business owners minds — especially those still waiting on PPP money — is, “where’d the PPP money go?”

Let’s find out.

What types of businesses got most of the first round of Paycheck Protection Program (PPP) loans?

On Friday, April 16, the SBA disclosed a summary of the initial phase of the Paycheck Protection Program. Here’s a high level view of what they announced:

  • Total number of approved loans: 1,661,367
  • Total dollars loaned: $342 billion

And here’s a breakdown of which industries got most of the money:

Construction businesses got the largest percentage, at 13%. Professional, scientific and technical service businesses, manufacturing businesses, and health care and social assistance businesses all also got more than 10% of available funds each.

This gives us a good idea of which types of businesses got most of the first round of PPP funding, but it doesn’t tell us what size of business got the lion’s share of the first round of funding.

And a lot of business owners want to know, did most of the initial PPP round go to the big guys, the little guys, or both?

Did big businesses or small businesses get most of the initial PPP funds?

One way to determine what size of business got most of the initial round of the Paycheck Protection Program is to examine the size of the loans distributed.

Because loan size was primarily determined by average monthly payroll costs, you can safely assume that the larger the loan size, the larger the company receiving it.

Most of the total issued loans, by far, appeared to go to smaller businesses. 1.2 million loans (or 74% of all loans) were for $150,000 or less. Meanwhile, only 4% of issued loans were for $1 million or more.

But that’s only half of the story of the figures above. While the vast majority of loans were issued to smaller businesses, total funds appear to be distributed more evenly across small, medium, and larger businesses.

The largest percentage of PPP went to loans appeared to go to medium-sized businesses, as nearly a quarter of all funds went to loans between $350 thousand and $1 million.

And while loans of $1 million or more  may have only taken 4% of issued loans, they made up 44.5% of all available funds.

The overall average loan size, according to the SBA report, was $206,000.

Let Womply help you apply for your PPP loans!

As you know, it’s free to apply for a PPP loan, and we know you have lots of choices. So why should you let Womply connect you with an approved SBA lender? Because we know what we’re doing and people love the help we provide. We’ve helped over 200,000 businesses, contractors, sole proprietors, and self-employed individuals get approved. Don’t wait! The deadline is March 31, 2021.

Start your PPP application now!

Learn more, plus get free reputation monitoring and customer insights when you sign up for Womply Free!

Blog

COVID-19 stimulus for consultants, contractors, agents (BIG PPP RULE CHANGE)

In this 5-minute read: Paycheck Protection Program (NEW RULES/BENEFIT FOR SCHEDULE C FILERS!) Pandemic Unemployment Assistance (PUA) benefits SBA Economic […]

Read More

Does California Prop 22 impact PPP loans? (plus NEW RULE CHANGES)

In this 3-minute read: What is California Prop 22? How does it affect app-based drivers who want to apply for […]

Read More

Can consultants apply for PPP loans? (important updates!)

In this 4-minute read: Do consultants qualify for PPP loans? What other eligibility requirements should you be aware of? Recent […]

Read More

Can real estate agents get PPP loans? (important changes for 2021!)

In this 4-minute read: Can real estate agents apply for PPP loans? Are there any other PPP loan eligibility requirements? […]

Read More

PPP UPDATE: New max loan amount calculation for Schedule C borrowers

In this 3-minute read: What changes to the PPP process will impact “Schedule C filers”? New rules will allow certain […]

Read More

14-day PPP exclusivity period starts today: what you need to know

In this 3-minute read: PPP “Exclusive Application Period” opens 2/24/21 and continues through 3/9/21 Businesses with 20 or more employees […]

Read More

Start Your PPP Application.

What describes you or your business best?

My business has multiple employees.

My business does not have multiple employees and/or I work for myself (e.g., Uber drivers, DoorDash couriers, independent contractors).