After weeks of mounting pressure from Congress and private interest groups, the Treasury announced at the end of June that it would be releasing information on all borrowers who received PPP Loans exceeding $150,000. Following a good deal of speculation regarding the date of the release and the information to be included, on July 6, 2020 the SBA and Treasury released the names of those borrowers.
The disclosure provides the name of the recipient, the industry in which the company operates, geographic data, non-profit status, and the number of jobs said to be supported by the loan. Although the precise amount of the loan is not disclosed, the recipients are placed into tranches providing the range of funds received (i.e., $150k-350k, $350K-$1 Million, etc.).
The released information reveals that over 85% of loans fell short of the reporting category of $150,00 or more. However, the 15% of loans that were in excess of $150,000 accounted for nearly $380 Billion in borrowed funds, which is roughly 73% of the dollars lent out through the Paycheck Protection Program. The average loan amount was $107,000.
It remains to be seen what Congress, the Administration, and pundits will do with the data. While reportedly supporting over 50 million American jobs during this tough time, the PPP is facing criticism for providing more funds to big-dollar corporations than the small and mid-sized business struggling to keep their doors open during the pandemic. With additional stimulus measures remaining a distinct possibility, lawmakers on both sides will likely use this information to sharpen their quills for the next round of bill drafting.
If you have any questions, please contact Steven Miller, alliantNational’s National Director of Tax, at (202) 888-7006.