PROVIDENCE – More Rhode Island small businesses were approved for federal forgivable payroll loans in the last week compared to the prior seven days, but for less funding, according to the latest update from the U.S. Small Business Administration published on Tuesday.
Just over 800 small businesses, nonprofits and other eligible state entities were approved for a combined $15.7 million in Paycheck Protection Program loans between April 18 and 25, the latest data available. The week before, the program doled out $19 million to 600 eligible Rhode Island recipients, suggesting the average loan size has decreased as the number of approved applications went up. Since loan amounts are based on payroll size, it also suggests the latest recipients are smaller businesses, in terms of employees.
In total, the second round of the program has provided $938.5 million in forgivable payroll loans to 14,400 Rhode Island recipients. Nationally, 5.1 million loans totaling $248.5 billion have been approved since the program relaunched in January, with an average loan size of $48,000.
Demand never reached the level of the first-round distribution in 2020, but has slowed significantly in recent weeks, especially after new federal grant programs for event businesses and restaurants were announced.
Eligible applicants still have until May 31 to apply for PPP money thanks to a two-month extension approved by Congress. About $25.5 billion of the original $284 billion allocation remains, not including the $7 billion tacked on in the American Rescue Plan Act of 2021.
How much the second-round, amended program has helped hard-hit women and minority-owned businesses secure funding remains unclear. A majority of recipients still do not identify their race or ethnicity.
Demographic and industry data was not available by state.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
