More than half of emergency small-business funds went to larger businesses, new data shows

[ZiprHead]

The Trump administration has emphasized PPP loans to small firms, but most of the $522 billion went to a tiny slice of borrowers

More than half of the money from the Treasury Department’s coronavirus emergency fund for small businesses went to just 5 percent of the recipients, according to data on more than 5 million loans that was released by the government Tuesday evening in response to a Freedom of Information Act request and lawsuit.

According to data on the government’s Paycheck Protection Program (PPP), about 600 mostly larger companies, including dozens of national chains, received the maximum amount allowed under the program of $10 million.

Officials from the Treasury Department and the Small Business Administration (SBA) have argued the program primarily benefited smaller businesses because a vast majority of the loans ― more than 87 percent ― were for less than $150,000, as of August. But the new data shows more than half of the $522 billion in the same time frame went to bigger businesses, and only 28 percent of the money was distributed in amounts less than $150,000.

“The data shows that this program primarily benefited the well-banked and well-lawyered at the expense of the small businesses it was supposed to benefit,” Hempowicz said.

 

[Loren Pechtel]

Duh! Populists don't actually help the people. It's just a platform to actually help their cronies.

 

[barbos]

Why is that surprising? and outrageous?
If you have $10mil limit on your small business then you are inevitably going to get small number of somewhat larger small businesses.
And why small bisinesses are so special? there are big businesses which are hurting too.

 

[Elixir]

Why is that surprising? and outrageous?
If you have $10mil limit on your small business then you are inevitably going to get small number of somewhat larger small businesses.
And why small bisinesses are so special? there are big businesses which are hurting too.

The SB regulations are ludicrous.

I entered a bid on a very relatively tiny (<100k) small business set-aside contract one time, and got beaten out of it by a Company whose name sounded like it was a little seaside mom-and-pop shop.
Since they seemed to be operating in our space, I began researching them. Within a couple of hours I had tracked down well over TWO BILLION DOLLARS that they had been awarded in federal contracts in the prior year. I filed a protest. Their first response was to claim that their SB status was based on having less than 500 employees. Turned out to be true - most of their workforce was contracted. It was fairly intimidating - they had board members who were also members of the prior Administration's cabinet (retired military) and the like. But I pressed on with the protest, demanding criteria from the SBA for what was and was not a "small business" . That was when they withdrew their bid, rather than force a definition that might restrict their future eligibility to bid on SB set-asides.

Eventually that Company began deferring to us - even soliciting our help and sending us private contracts for parts of projects that were not set-asides. They even turned over a whole product development project for NSW (Naval Special Warfare) to us, stipulating that they were to remain middlemen...

In short, the whole "small business" thing is a well dressed illusion. The only enforcement is whatever an actually SMALL business can force on a pretend small business that might cost them more than the potential profit from continuing to pretend to be "small". It's a joke.

 

[ronburgundy]

Why is that surprising? and outrageous?
If you have $10mil limit on your small business then you are inevitably going to get small number of somewhat larger small businesses.
And why small bisinesses are so special? there are big businesses which are hurting too.

The point was to help small businesses with minimal banking connections or access to other reserve funds to stay in business. TGIF owned by TriArtisan Capital Investments (who also owns Sara Lee, PF Changs, Linen and Things, and dozens of other major national chains and brands) doesn't fit that concept has plenty of capital to weather the lockdowns.

 

[Jimmy Higgins]

Why is that surprising? and outrageous?
If you have $10mil limit on your small business then you are inevitably going to get small number of somewhat larger small businesses.
And why small bisinesses are so special? there are big businesses which are hurting too.

The point was to help small businesses with minimal banking connections or access to other reserve funds to stay in business. TGIF owned by TriArtisan Capital Investments (who also owns Sara Lee, PF Changs, Linen and Things, and dozens of other major national chains and brands) doesn't fit that concept has plenty of capital to weather the lockdowns.

If it is a nationally owned chain and not an independent franchise. Granted, the cutoff line was what, 500 employee?! Did the money not get sent back?