The Small Business Administration (“SBA”) released updated results by state for the $284 billion SBA loan Payroll Protection Program (“PPP”) by state. We compared the data released from the first 11 days of the days of the Second Draw PPP program in January 2021 to the first data released from the first 10 days of the original PPP loan program in April 2020. Some key takeaways:
-
- Mission accomplished on helping out the small fries. They received more dollars early.
- Slower pace – $35B deployed so far versus $248B at the same point last year.
- Rural states continue to rule.
As you may recall, one early complaint about during PPP 2020 was big banks with their high tech platforms serving big customers first were shutting out the small businesses from funding. PPP Round 2 loans (aka Second Draw PPP loans). The SBA looked to mollify this impact in 2021 by allowing small financial institutions an exclusive window to process applications (January 11th – January 18) before everyone else could participate. The results? Average loan size in the first 1.5 weeks was $87K down from $239K in early April 2020 so the very small businesses are in the front of the line.
The cost of providing the early access window to the small financial instutitions is a much slower approval of PPP loans compared to 2020. At the same point in 2020, approved PPP loans were 7x greater ($248B in April 2020 versus $35B in 2021).
| 2021 Loans | Average | # Approved | $$$ Approved | % of Count | $ of Amount |
|---|---|---|---|---|---|
| < $150K | 36,315 | 348,556 | 12,657,897,330 | 87% | 36% |
| >$150K - $350K | 226,995 | 31,590 | 7,170,758,008 | 8% | 20% |
| $350K - $1M | 561,236 | 16,396 | 9,202,032,287 | 4% | 26% |
| $1M - $2M | 1,468,816 | 4,016 | 5,898,764,998 | 1% | 17% |
| $2M - $5M | 3,223,720 | 19 | 61,250,689 | 0% | 0% |
| >$5M | 8,983,587 | 3 | 26,950,760 | 0% | 0% |
| Totals | $87,417 | 400,580 | $35,017,654,072 | 100% | 100% |
| 2020 Loans | Average | # Approved | $$$ Approved | % of Count | $ of Amount |
| < $150K | 51,277 | 725,058 | 37,178,984,187 | 70% | 15% |
| >$150K - $350K | 228,211 | 156,590 | 35,735,615,983 | 15% | 14% |
| $350K - $1M | 578,607 | 102,473 | 59,291,602,643 | 10% | 24% |
| $1M - $2M | 1,388,212 | 31,176 | 43,278,883,532 | 3% | 17% |
| $2M - $5M | 2,984,318 | 16,516 | 49,288,997,593 | 2% | 20% |
| >$5M | 6,956,709 | 3,273 | 22,769,309,582 | 0% | 9% |
| Totals | $239,152 | 1,035,086 | $247,543,393,520 | 100% | 100% |
We looked at the number of loans approved to the number of small businesses that exist in each state to determine the percentage of small businesses that have been approved for a SBA loan. The data from 2020:
In general, so far in 2021 we are seeing a similar trend with the rural states with their disproportionate share of small, community banks and financial institutions process PPP loans faster than their urban counterparts:
| 2021 Rank | 2020 Rank | State | 2021 PPP Loans | % Firms w/loans | 2020 PPP Loans | % Firms w/loans |
|---|---|---|---|---|---|---|
| 1 | 2 | Nebraska | 12,619 | 30.0% | 23,477 | 56% |
| 2 | 6 | Iowa | 16,709 | 27.3% | 29,424 | 48% |
| 3 | 4 | Oklahoma | 16,304 | 23.1% | 35,557 | 50% |
| 4 | 1 | North Dakota | 3,884 | 20.6% | 11,002 | 58% |
| 5 | 3 | South Dakota | 4,198 | 19.5% | 11,324 | 53% |
| 6 | 7 | Kansas | 9,470 | 17.0% | 26,245 | 47% |
| 7 | 16 | Minnesota | 15,235 | 13.1% | 46,383 | 40% |
| 8 | 11 | Wyoming | 2,100 | 12.1% | 7,618 | 44% |
| 9 | 13 | Missouri | 12,672 | 11.3% | 46,481 | 41% |
| 10 | 34 | Illinois | 27,595 | 11.0% | 69,893 | 28% |
| 11 | 14 | Wisconsin | 10,397 | 9.8% | 43,395 | 41% |
| 12 | 19 | Kentucky | 6,145 | 9.5% | 23,797 | 37% |
| 13 | 15 | Vermont | 1,461 | 8.5% | 6,983 | 40% |
| 14 | 24 | Rhode Island | 1,919 | 8.3% | 7,732 | 33% |
| 15 | 39 | Michigan | 13,171 | 7.7% | 43,438 | 25% |
| 16 | 23 | Louisiana | 6,002 | 7.6% | 26,635 | 34% |
| 17 | 25 | Massachusetts | 10,578 | 7.5% | 46,937 | 33% |
| 18 | 12 | Montana | 2,361 | 7.4% | 13,456 | 42% |
| 19 | 9 | Maine | 2,433 | 7.4% | 14,993 | 45% |
| 20 | 17 | New Hampshire | 2,164 | 7.3% | 11,582 | 39% |
| 21 | 38 | Connecticut | 4,787 | 6.9% | 18,435 | 27% |
| 22 | 5 | Mississippi | 2,910 | 6.8% | 20,748 | 49% |
| 23 | 30 | Pennsylvania | 15,378 | 6.8% | 69,567 | 31% |
| 24 | 22 | Indiana | 6,800 | 6.4% | 35,990 | 34% |
| 25 | 10 | Arkansas | 2,947 | 6.0% | 21,754 | 44% |
| 26 | 40 | New Mexico | 1,960 | 6.0% | 8,277 | 25% |
| 27 | 29 | Texas | 25,773 | 5.9% | 134,737 | 31% |
| 28 | 41 | Maryland | 6,293 | 5.9% | 26,068 | 24% |
| 29 | 26 | Ohio | 10,336 | 5.8% | 59,800 | 33% |
| 30 | 18 | Alabama | 4,087 | 5.7% | 27,922 | 39% |
| 31 | 50 | Nevada | 2,801 | 5.6% | 8,674 | 17% |
| 32 | 32 | Alaska | 905 | 5.5% | 4,842 | 29% |
| 33 | 28 | West Virginia | 1,373 | 5.4% | 7,861 | 31% |
| 34 | 31 | Colorado | 6,812 | 5.0% | 41,635 | 31% |
| 35 | 43 | Oregon | 4,536 | 4.9% | 18,732 | 20% |
| 36 | 21 | Tennessee | 4,680 | 4.9% | 34,035 | 35% |
| 37 | 36 | Delaware | 892 | 4.7% | 5,171 | 27% |
| 38 | 27 | Utah | 3,010 | 4.7% | 21,257 | 33% |
| 39 | 37 | Virginia | 6,834 | 4.6% | 40,371 | 27% |
| 40 | 49 | New Jersey | 8,599 | 4.5% | 33,519 | 18% |
| 41 | 48 | New York | 20,251 | 4.4% | 81,075 | 18% |
| 42 | 35 | Georgia | 7,706 | 4.4% | 48,332 | 27% |
| 43 | 47 | Arizona | 4,640 | 4.4% | 19,280 | 18% |
| 44 | 45 | Florida | 19,425 | 4.3% | 88,997 | 20% |
| 45 | 51 | California | 31,981 | 4.2% | 112,967 | 15% |
| 46 | 44 | Washington | 6,314 | 4.1% | 30,421 | 20% |
| 47 | 46 | DC | 687 | 4.0% | 3,253 | 19% |
| 48 | 33 | South Carolina | 2,982 | 3.7% | 22,933 | 29% |
| 49 | 42 | North Carolina | 5,349 | 3.1% | 39,520 | 23% |
| 50 | 20 | Idaho | 1,179 | 3.1% | 13,627 | 35% |
| 51 | 8 | Hawaii | 361 | 1.5% | 11,553 | 47% |
Map of SBA PPP loans for all states through May 30, 2020
Data Source: SBA.gov