BARNEGAT/WARETOWN, NJ -- The SBA and the Treasury Department released detailed loan-level data regarding the 4.9 million small business loans made under the Paycheck Protection Program (PPP). Overall, PPP made $521 billion in forgivable loans to businesses nationwide. The average loan size was approximately $100,000, demonstrating that the program is serving the smallest of businesses, according to Treasury Secretary Steve Mnuchin. Businesses in the Barnegat and Ocean Township area were able to take advantage of the program.
“The PPP is providing much needed relief to millions of American small businesses, supporting more than 51 million jobs and over 80% of all small business employees, who are the drivers of economic growth in our country,” Secretary Mnuchin said. “We are particularly pleased that 27% of the program’s reach in low and moderate income communities which is in proportion to percentage of population in these areas.
The SBA released New Jersey-specific PPP loan data earlier this week. According to the SBA numbers, 125,688 PPP loans totaling nearly $4.5 billion ($4,463,997,130) were made in the Garden State and resulted in 531,360 jobs saved.
In Barnegat, 171 businesses received a total of $5,708,981 as a result of the PPP program. The highest amount received was $147,508, just under the $150K of available funds. A total of 558 jobs were saved in Barnegat as a result of the government intervention. One employer was able to provide payroll protection to 35 workers.
The 67 Waretown businesses that benefited from the PPP program received a total of $2,281.055. The highest amount received was $133,444, with 204 jobs saved. Of that number, one employer listed 32 employees.
Congressman Andy Kim (D, NJ-03) has called for greater transparency for funds allocated through the Paycheck Protection Program (PPP) and clarity for small business owners on loan forgiveness during a hearing of the House Small Business Committee on the PPP.
“This is one of the most important issues that I hear constantly about in my district in New Jersey,” said Kim. “Reforms to the Paycheck Protection Program and making sure funds get into the hands of the people who need it the most is really a critical question.”
The PPP was created by Congress to provide cash-flow assistance through 100% federally guaranteed loans to employers, which are forgivable if they maintain their payroll during this emergency. Congress recently extended the PPP lending deadline from June 30 to August 8. For additional information on small business relief options and to apply for a forgivable loan, click here.
Kim testified before the House Small Business Committee in April and acknowledged there were flaws to the system.
“If you’re a small business owner who has received this help, it’s been a life saver – but we need to be clear: the Paycheck Protection Program has been deeply flawed and does not provide the long-term solutions or certainty our small business owners deserve,” said Kim in his remarks. “From day one, we have seen the Paycheck Protection Program fail our small business owners All of these things need to be fixed, and they need to be fixed now.”
SBA Administrator Jovita Carranza added that she believes PPP is an indisputable success for small businesses, especially to the communities in which these employers serve as the main job creators.
“In three months, this Administration was able to act quickly to get funding into the hands of those who faced enormous obstacles as a result of the pandemic," Carranza said. "Small businesses of all types and across all industries benefited from this unprecedented program. The jobs numbers released last week reinforce that PPP is working by keeping employees on payroll and sustaining millions of small businesses through this time.”
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