PERC Staff Discuss PPP Loans with The Eagle
Mar 29, 2021
Summary: Dennis Jansen and Andrew Rettenmaier were quoted in an article on the local and national impact of the Paycheck Protection Program that was published in The Eagle on Sunday, March 28, 2021.
The Paycheck Protection Program (PPP) is a loan program for businesses negatively affected by the coronavirus pandemic that is administered by the Small Business Administration. PPP loans are intended to incentivize businesses to maintain employees on payroll, and these loans are forgivable as long as 60% of the balance is used towards meeting payroll and the rest spent on other approved businesses expenses such as rent and utilities.
The first round of PPP loans were made available in the spring of 2020. PERC and the BCS Chamber of Commerce jointly surveyed businesses and organizations local to College Station-Bryan through two surveys, one in June and another in November of 2020. In November, 58.4% of the 214 local business respondents said they had applied for PPP loans, and 80.4% of those who received the PPP forgivable loans received $150,000 or less.
The article states, “Jansen said that through March 21, Texas has received $15.2 billion in PPP loans, 7.8% of the total. That amount trails California ($26.1 billion) and New York ($16.2 billion). Rettenmaier said that so far in 2021, according to national SBA data, food services has received the largest share of loans, at 17%, followed by the construction industry at 13%.”
"For restaurants especially, if that allowed them to get over the period where they were completely shut down, and to maintain operations when they were partially shut down, it may have worked to keep them around," Jansen said. "Maybe they wouldn't be here without this."
Read the full article at The Eagle.
Read the latest Business Impact Survey report here.