SBA releases list outlining which businesses received paycheck protection loans
BISMARCK, N.D. (KFYR) - Paycheck Protection Program loans are making it possible for businesses to stay open and keep their employees on the payroll during the COVID-19 pandemic.
Nearly 20,000 businesses in North Dakota received the loan. New data released by the Small Business Administration and Treasury Department shows there are big differences in loan amounts.
Tuesday, a complete detailed list of businesses that received the loans was released. The majority of businesses received $150,000 or less. But 88 businesses in North Dakota received between $2-and-$5 million, while 14 received $5-to-$10 million.
Some lawmakers and business-owners raised concerns in the first round of funding that large corporations were receiving money meant for smaller businesses.
But Small Business Administration leaders say that situation isn’t common, as about 70 percent of the administered loans were less than $100,000.
“To us, those exceptions are just that...a few. When you look at the totality of the number of businesses that were enabled, about 5 million small businesses, that is a small number to really consider and spend a lot of time discussing,” said Jovita Carranza, SBA administrator.
The program’s definition of a small business is simple: it must have less than 500 employees.
SBA leaders say they have confidence the few businesses in North Dakota that received between $5-and-$10 million truly needed it and will be forgiven.
“I expect that most, if not all businesses, will be eligible for full forgiveness with the extended time-frame as a part of the CARES Flexibility Act.” The Flexibility Act extends the deadline from 8 to 24 weeks for the borrower to restore their workforce to pre-pandemic levels,” North Dakota SBA Director Alan Hawt.
SBA leaders say the loan seems to have served its main purpose of covering payroll expenses. More than 170-thousand people in North Dakota remained employed through the program’s funds.
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