Michigan Companies Issued More Than $15.7 Billion in PPP LoansJune 17, 2020
With more than 20 million people on insured unemployment and a national unemployment rate of 13.3% in May 2020, the coronavirus crisis has acutely impacted the United States economy. To help small businesses affected by the pandemic, the CARES Act created the Paycheck Protection Program (PPP) to provide a direct incentive for small businesses with under 500 employees, that had to unexpectedly shutdown or pull back operations, with payroll and other expenses. The U.S. Small Business Administration (SBA) rolled out the program and is providing various options for small business assistance during the pandemic, including disaster loans.
According to the SBA’s PPP report released on Friday, June 12, Michigan businesses received more than $15.7 billion through more than 115,000 PPP loans. In total banks distributed more than 4.5 million PPP loans totaling over $510 billion dollars across the United States. Michigan ranks ninth for total loan amount received, with California ranking first issuing more than $66.6 billion in loans.
Using the SBA’s report, along with 2019 population estimates from the U.S. Census Bureau, the total value of PPP loans per-capita in each state and the District of Columbia can be calculated.
- Michigan has received $1,574 per-capita in loans, ranking the state 29th.
- Washington D.C ranked first with $2,992 per-capita in loans, followed by North Dakota ranking second with $2,302 per-capita.
- West Virginia received the lowest per-capita loan amounts at $993, and Mississippi second to last with $1,055 per-capita in loans.
Despite having the second highest unemployment rate among all states in April 2020 at 22.7%, Michigan fell in the middle of the road in per-capita PPP loans.
By industry, health care and social assistance businesses received the largest loan amounts nationally at $66.2 billion, distributing more than 479,650 loans representing almost 13% of the total loans distributed. The next top three industries included professional, scientific, and technical services ($65.3 billion), construction ($63.5 billion), and manufacturing ($53.5 billion) organizations. When looking at Bureau of Labor Statistics’ unemployment rates by industry, Accommodation and Food Services had one of the highest unemployment rates in May 2020 at 33.9% with the industry receiving 8% of the total loans distributed totaling $41.1 billion.