More than 19,000 small businesses across Tennessee have received forgivable loans from the federal government under the Paycheck Protection Program.
The program was included in the Coronavirus Aid, Relief and Economic Security (CARES) Act passed on March 27 and signed into law by President Donald Trump. A total of $349 billion was set aside for the program, which is intended to help small businesses keep their workers on payroll during the coronavirus pandemic.
Small businesses can qualify for a maximum loan amount of up to two months of their average monthly payroll costs plus an additional 25 percent of that amount, according to the U.S. Department of Treasury. All loans are subject to a $10 million cap.
All businesses with 500 or fewer employees are eligible for the program, including independent contractors and people who are self-employed. Businesses with more than 500 employees are still eligible if they can meet certain standards set by the Small Business Administration (SBA).
According to the SBA, loans will be forgiven if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
A report released Monday by the SBA notes that 19,074 small businesses in Tennessee have received a loan under the Paycheck Protection Program. In total, small businesses across the state have received more than $4.7 billion in loans.
Nationally, the SBA has issued 1.03 million loans to small businesses. As of Monday, more than $247 billion had been dispersed under the program.
The overall average loan size is $239,152, the SBA’s report says. A little more than 70 percent of loans issued thus far have been $150,000 and under.
Small businesses in the construction industry have received the most loans, followed by the professional, scientific, and technical services industry, manufacturing, health care and social assistance, and accommodation and food services.
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Anthony Gockowski is managing editor of The Minnesota Sun and The Ohio Star. Follow Anthony on Twitter. Email tips to [email protected].
And just how much has this boondoogle really cost? How much are the bureaucrats getting paid to doe out taxpayer money? Just more left-wing feel good baloney. The solution would have been to have let the businesses stay open and let the public decide whether or not to frequent them. But then the government would not have been considered the only saving grace.