Forty-four percent of the U.S. GDP comes from the nation’s small businesses and 98 percent percent of the nation’s small businesses employ fewer than 20 people. The Paycheck Protection Program was supposed to be a primary lifeline for these small businesses to survive the economic impacts wrought by the COVID-19 pandemic. But according to data released last December the Trump administration failed to target this aid to them and instead prioritized larger companies and corporations, donors, family members, and friends. In less than two months the Biden administration is course correcting.
Here’s how the two administrations compare:
- Over $520 billion worth of PPP loans were made primarily under the Trump administration.
- 25 percent of that loan money went to only one percent of the businesses that received the aid.
- More than half of the loan money went to 5 percent of the 5 million plus recipients.
- Over half of the issued loans were given to what the Washington Post called “bigger businesses.”
- The Trump administration initially argued that 87 percent of the loans went to smaller businesses that received loans worth $150,000 or less, the data revealed that number was actually 28 percent.
- Over 25 loans worth $3.65 million went to properties paying rent to the Trump Organization and the family of Jared Kushner.
- Closure rates among minority owned businesses are significantly higher than their white peers.
- A government watchdog agency found the Trump administration did not instruct lenders to prioritize minority and women owned businesses as Congress had originally intended.
- Major Trump donors received at least $40 million worth of assistance.
- 600 larger companies including many national chains each received $10 million loans.
- $164 billion worth of loans made thus far under his administration (as of March 7).
- 92 percent of all loans have gone to businesses with 20 employees or fewer.
- 84 percent of loans are for less than $100,000, 94 percent of loans are less than $250,000.
- 14 day exclusive application period (February 24th — March 9th) for businesses with less than 20 employees that significantly increased loans made to those who need it the most. According to the Biden administration, during this period:
- Over 400,000 more businesses with fewer than 20 employees received loans;
- Over 300,000 more businesses with fewer than 5 employees received loans;
- 20 percent increase in loans approved for minority owned businesses than the previous tend days; and
- 14 percent increase in loans approved to businesses in rural areas than the previous ten days.
- Established a $1 billion set-aside for independent contractors, self employed, and sole proprietors.
- Small businesses with ten or fewer receiving loans increased by nearly 60 percent and small businesses in rural areas receiving loans increased by nearly 30 percent as of last month.