WASHINGTON/SAN FRANCISCO (Reuters) – Over two frenzied weeks, the U.S. federal government pledged $350 billion to Main Street services throughout America desperate for cash after coronavirus lockdowns.
SUBMIT PHOTO: An individual in a mask strolls on a nearly empty street in the coronavirus break out near the Treasury Department in Washington, U.S. March 30,2020 REUTERS/Jonathan Ernst
Now a picture is emerging of who got the cash. More than 25%of the total pot went to fewer than 2%of the firms that got relief. They consist of a number of openly traded companies with thousands of staff members and numerous countless dollars in annual sales.
The loans from the U.S. Small Business Administration – amounting to $3423 billion since Thursday – went to business in all 50 states, the District of Columbia and 5 U.S. territories, and were spread across all 20 of the main industry sectors.
Congress directed the SBA to award $349 billion to struggling services with 500 or less employees as part of a $2.3 trillion coronavirus aid plan that President Donald Trump signed into law on March27 The Payroll Defense Program (PPP) was crafted to keep Americans off welfare, by providing small and mid-sized companies forgivable loans for keeping employees on the books.
The SBA does not make the loans directly but rather backs loans made by taking part financial firms.
The three greatest state economies – California, Texas and New York – accounted for 23%of the loans, more than $82 billion. Meanwhile, services in a variety of little, rural states that have actually avoided the brunt of the outbreak took home an out of proportion share of the pie.
Business sector receiving the most money was building, with 13%of the overall. The sector represents less than 9%of overall employment amongst U.S. firms with 500 or less workers, according to U.