Nevada small businesses get more aid in second round of SBA emergency loan funding
The Nevada Independent
WASHINGTON — After faring poorly in the initial round, Nevada small businesses received the second highest number of approved loans and total aid in the second round of funding for the Small Business Administration emergency loan program compared with six similar-sized states.
But overall, the Silver State still remains near the bottom among those seven states, which have populations between 2.9 million and 3.5 million, according to an analysis of SBA statistics released Sunday that includes the second round of funding.
Nevada came in last among the seven states in the initial round.
The state, which has a population of 3.08 million, ranked fifth in the total amount of Paycheck Protection Program aid provided through May 1 at $3.95 billion and remained last in the number of approved loans compared to the other six states with 30,637. (Those figures could change slightly. SBA noted that it is still confirming information on 578 loans totaling $48.5 million.)
Between April 27 and May 1, Nevada had 21,963 loans approved totaling $1.9 billion, Sunday’s SBA statistics showed. Between April 3 and April 16, Nevada had 8,674 loans approved totaling $2.01 billion.
The second-round numbers boosted the state’s overall rank to 37th from 43rd in the number of loans approved compared to all other states.
Of the seven similarly populated states, only Connecticut, a state of 3.5 million, did better than Nevada in the second round with 29,559 totaling $2.6 billion.
After Nevada, Utah saw 21,751 loans approved totaling $1.67 billion, followed by Iowa with 19,997 approved loans amounting to $781 million. Kansas had 18,470 loans approved totaling $815 million; Mississippi had 16,757 loans approved providing $658 million; and Arkansas had 15,454 loans approved totaling $618 million. Puerto Rico, which has a population of 3.19 million was also in the second-round mix with 19,691 approved loans totaling $987 million.
President Donald Trump signed legislation on April 24 that provided the second round of funding, $321 billion, for the SBA’s Paycheck Protection Program after approval by Congress that week.
The funds came after the initial $349 billion provided for the PPP were depleted in about two weeks as businesses scrambled to stay afloat after governors, including in Nevada, closed non-essential businesses to slow the spread of the coronavirus.
The second-round funding figures also come after the Nevada congressional delegation was victorious in pressing for a change to PPP rules, which has effectively deemed most small gaming businesses ineligible for PPP loans.
SBA said that on a nationwide basis, more than 2.2 million second-round loans were approved from more than 5,400 lenders totaling $175.7 billion. The majority of second-round loans were less than $50,000 and the average loan amount was $79,000.
Launched April 3 as part of the coronavirus relief package known as the CARES Act, PPP provides loans to small businesses with fewer than 500 employees. Part of the appeal of the program is that loans used to pay certain expenses, such as keeping workers in place or to pay mortgage interest, rent and utilities, do not have to be repaid.
Disclosure: The Nevada Independent has received a PPP loan.
Heather Ashbridge, who started with Nevada State Development Corporation in 2008, previously served in several roles with the organization, including assistant vice president and loan officer. She is based in NSDC’s Reno office.