States With Less Cases Received Higher Percentage of PPP Funds
April 29, 2020
A new study of assets distributed through the Small Business Administration’s Paycheck Protection Program claims New Jersey was shortchanged when it came to fund availability. The study, conducted by SmartAsset, says states barely touched by the COVID-19 pandemic received a disproportionate amount of funding..
According to a New York Post report, using COVID-19 cases per 10,000 people and comparing it to the percentage of payroll eligible for PPP statewide, the study shows that the Garden State received no extra consideration than states barely touched by the pandemic. New Jersey, with 88 cases per 10,000 residents, received enough PPP funding to protect just over half the payroll that needed it. Only California fared worse.
By comparison, Nebraska, which had less than 6 cases per 10,000 people and a total of 53 reported deaths from the virus, received enough PPP funding to cover more than 90 percent of the state’s at-risk payroll. Nebraska’s governor has yet to issue the kind of statewide stay-at-home order that brought businesses here to a screeching halt.
“You’d think more of this money would go to populations hit the hardest,” said SmartAsset’s Mark LoCastro. “Instead, it’s the opposite.”
Read more about states not faring well with PPP.
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