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Coronavirus loans went to big companies first
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NEW YORK (AP) — Ever since the U.S. government launched its emergency lending program for small businesses on April 3, there have been complaints that bigger companies had their loans approved and disbursed more quickly.
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There is now evidence to back up those complaints.
An Associated Press analysis of Small Business Administration's $659 billion Paycheck Protection Program shows that nearly a third of the loans approved in the program’s first week ranged from $150,000 to $10 million, the maximum allowed. In a second round of funding that began April 27, such loans made up just 7.4% of the total.
FIRMS WITH TROUBLED PASTS GOT MILLIONS IN PPP SMALL-BUSINESS AID
The average loan size fell from $257,240 on April 10 to nearly $105,000 as of July 17, according to the SBA.
The PPP made very low-interest loans available to any business — or any franchisee of a business — with under 500 employees. The loans would be forgiven if most of the money was used to keep employees on payroll.