July 10, 2020
Who got the biggest PPP loans?
The SBA released a report this week disclosing the names of those who have received Paycheck Protection Program (PPP) loans of at least $150,000, among other details. Some highlights:
- $521 billion in loans has been distributed to 4.8 million borrowers.
- The average loan size was $107,000.
- The SBA says the program is supporting over 50 million jobs.
- Half the loan money went to five industries: healthcare & social assistance, professional & tech services, construction, manufacturing, and hospitality & food service.
- Lenders were mostly banks (which distributed $497 billion in loans), followed by credit unions ($9.7 billion), small businesses lending companies ($6.6 billion), and finally, fintech ($4.7 billion).
Many remain concerned that loans were distributed on a first-come-first-served basis rather than based on need. In response, several members of Congress are advocating that the remaining funds be disbursed in a more targeted and effective way; and some are proposing that struggling businesses be eligible for a second PPP loan.
It’s Tax Season!
The time has come—after a 90-day delay, it’s finally time to file.
Ready to reap the benefits of tax write-offs? Check out these tax deduction guides for:
- Self-employed business owners
- Online sellers
- Shop owners
- Tech start-ups
- Employers who sponsor health insurance
Right now, you’re likely laser-focused on getting your 2019 taxes in before the deadline—but before you know it, you’ll be filing again. Remember: COVID-19 relief programs may have tax implications for next year, so take some time to understand how the PPP, EIDL, remote work, and unemployment benefits may affect how you file next year.
Top relief options for the week:
- Don’t have an established relationship with a large bank? You can still get a PPP loan; here’s a state-by-state list of lenders who are accepting PPP applications from new customers.
- Organizations in the Bay Area raised over $300,000 to support restaurants that didn’t receive PPP funding.
- The State of Pennsylvania has allocated $225 million to provide small businesses with financial relief.
- See more relief options in our Small Business Relief Finder.
Webinars to tune into:
- Gusto & Lightspeed present: Reopening your business: How to prepare your staff and protect your bottom line (July 13, 2020)
- Bench and Gusto present: Reopening your business (July 15, 2020)
On our radar:
- American Express has pledged $200 million to help jumpstart spending over the next few months and announced a grant program that will help Black-owned small businesses. (Forbes)
- Ad executive Brian Lee wants to help develop a million Black millionaires; he is rolling out a program to provide support to Black entrepreneurs at Black Health and Wealth. (Black Health Wealth)
- Comerica Bank and National Business League launched the Black Capital Access Program and committed $1 million to helping Black-owned businesses over the next four years. (Black Enterprise)
Want more small business news and resources? Check out past editions in our archive.