construction industry is first in covid-19 relief program

The national construction industry is the leading industry in securing loans through the Small Business Administration’s Paycheck Protection Program.

According to just-released figures, construction companies secured more than 85,700 individual loans under the program - more than the professional, scientific and technical services sector with just over 83,800 loans of greater than $150,000 each.

The healthcare and social assistance sector, reports the Small Business Administration, was next up with 83,745 loans.

Altogether, the Payroll Protection Program has ladled out some $521 billion in loans to nearly 659,000 borrowers.

The total dollar value for loans to construction companies stands at nearly $182 million. Significantly lower on the list is the manufacturing and retail sectors, which secured around $80 million each.

Those loans to the construction industry are thought to be responsible not for just keeping hundreds of companies open, but also for saving nearly 17,000 jobs.

Interestingly, well over 31,000 jobs were salvaged in the restaurant industry through the PPP loans, even though that sector’s total loan value through the program was smaller at just over $150 million.

In a statement, Jovita Carranza, administrator of the Small Business Administration, characterized the Payroll Protection Program as an “indisputable success for small businesses, especially to the communities in which these employers serve as the main job creators.”
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Two weeks ago, the Paycheck Protection Program announced that it was accepting new applications for loans, reflecting legislation extending the program’s schedule. The new PPP submission deadline is now August 8.

​By Garry Boulard

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