California businesses have received $66.6 billion in federal Paycheck Protection Program loans so far, about 13% of the nation’s total, according to federal loan data.
Gov. Gavin Newsom said the state’s businesses didn’t receive a proportional share of the federal money in the first round, but that it is now “punching above its weight” in the second round, so it’s starting to balance out.
The federal loan program is administered by the Small Business Administration to help cover payroll and expenses during the coronavirus pandemic.
Businesses and nonprofits with up to 500 employees are eligible for loans up to 2.5 times their monthly payroll, with a maximum of $10 million, to spend on wages, rent and utilities for eight weeks. If the business can show it spent the money on allowable expenditures, the loan will be forgiven. (CalMatters applied for and received a $535,000 PPP loan.)
California businesses received $33.4 billion in the first round of PPP funding, Newsom said, or less than 10% of the total disbursement. In the second round, which is only 60% complete, state businesses have already drawn $33.2 billion. That’s about 11% of PPP loans nationwide, and 13% of the money distributed.