Yesterday, the U.S. Small Business Administration (SBA) published the names of all recipients of the Paycheck Protection Program (PPP) loans of $150,000 or more
under the “Additional Program Information” section of the
SBA's PPP website
.
Specifically, the SBA released borrower-specific information for the following loan amount ranges:
- $150,000 to $350,000
- $350,000 to $1 million
- $1 million to $2 million
- $2 million to $5 million
- $5 million to $10 million
These ranges accounted for nearly 75% of the loan dollars approved, according to the SBA and Treasury. For loans below $150,000, the SBA released totals aggregated by ZIP code, industry, business type, and various demographic categories.
- U.S. approved loans - 4.5 million
- U.S. approved dollars - $512.2 billion
- U.S. average loan - $112,000
- Kansas approved loans - 50,103
- Kansas approved dollars - $4.9 billion
- Kansas average loan - $97,798
As you are aware, dealerships who applied for PPP loans did so to provide “Paycheck Protection” for their employees and to support business operations during the COVID-19 pandemic crisis. Use of the loan proceeds included:
- Employee Retention
- Continuation of Benefits (health insurance, retirement benefits, ancillary benefits)
- Re-hiring employees
- Maintaining employee wages
- Paying rent, utilities, and other PPP-approved expenses
It is important to remember:
- The 210 franchised new car and truck dealerships in Kansas employ over 10,000 Kansans with a total annual payroll of $552 million.
- The average Kansas dealership has an average annual payroll of $2.3 million and employs 49 individuals, who earn an average of $53,664 per year.
- Kansas dealerships generate $5.9 billion in annual retail sales.
From the start of the COVID-19 pandemic, Kansas dealers were deemed essential businesses due to the importance of maintaining adequate transportation in order to obtain or deliver essential items such as groceries and healthcare products to support a healthy population. In addition, first responders, medical professionals, food distribution personnel and many other individuals who perform critical services were dependent upon adequate transportation.
Congress designed the loans to support businesses facing economic hardships created by the COVID-19 pandemic and assist them in continuing to pay employee salaries. PPP loan recipients can have their loans forgiven in full if the funds were used for eligible expenses and other criteria are met. The amount of the loan forgiveness may be reduced based on the percentage of eligible costs attributed to nonpayroll costs, any decrease in employee headcount, and decreases in salaries or wages per employee.
