Restaurants and hotels attract $ 18 billion in PPP loans, highest of any industry
Restaurants and hotels have taken more than $ 18 billion in loans under the current version of the Paycheque Protection Program (P3), or 18% of all dollars granted to date, making the hotel industry the biggest borrower by far.
Data released by the US Small Business Administration (SBA), the administrator of PPP, shows that the average loan across all industries is $ 78,000, with about 70% of loans amounting to less than $ 50,000.
The overview of PPP activity shows that the number of second-draw loans – advances made to small businesses that have already borrowed money under the 11-month-old program is about three times that of loans for the first time.
Just under $ 101 billion has been loaned to date under the renewed program, which began in mid-January. About $ 284 billion has been allocated to the program, with Congress considering an increase of $ 7.3 under the COVID relief bill currently under development in the House of Representatives.
Since the program started at the start of the pandemic, around $ 623.4 billion has been loaned to businesses.
Restaurants are the biggest borrowers in terms of approved loans, according to the SBA. The second most common borrower was the construction industry, which attracted 14% of all money loaned as of February 7.