Digging Through the PPP Loan Data for Restaurants
By Nicholas Upton
The massive $2.2 trillion Paycheck Protection Program was just extended through August 8 for small businesses looking to tap into the historical business relief program. Data on the borrowers, meanwhile is already flowing out of the Treasury department.
Franchise Times dug into the initial data dump of more than 600,000 loan recipients, and the 290,296 restaurant companies that have received PPP loans to help them manage through the COVID-19 pandemic.
The data was split between state-level data for borrowers that received less than $150,000 and federal data listing all borrowers who took more than $150,000.
Among the 243,549 borrowers to get less than $150,000, the average loan amount was just over $45,000.
For those 46,747 businesses who got more than $150,000, the specific dollar amount was not listed, but just under 33,000 businesses got loans between $150,000 and $350,000; 10,500 received loans of $350,000 to $1 million and nearly 2,000 took loans in the $1 to 2 million range. Just 352 companies took loans in the $5 to $10 million range. Among those was the large Subway franchisee Rottinghaus, a large Outback franchisee Cerca Trova and corporate franchise entities Mod Pizza, Five Guys and Paris Baguette.
The loans were designed to keep people on staff and serve as bridge loans for other expenses. In a legislative update, 60 percent had to be spent on staffing and 40 percent could be spent on other business expenses. On average, sub-$150,000 borrowers reported that they had retained 11 jobs. Those with loans greater than $150,000 reported retaining more than 70 jobs on average. Overall, the average number of jobs retained was 21, but a few companies reported upwards of 500. That includes Rottinghaus, Paris Baguette and Golden Corral.
Numerous lenders originated loans, but a few backed thousands. The leading lender was Bank of America, followed by JP Morgan Chase. The top 10 lenders is as follows:
• Bank of America, National Association 17,583
• JPMorgan Chase Bank, National Association 12,374
• Wells Fargo Bank, National Association 8,886
• Celtic Bank Corporation 6,214
• Truist Bank d/b/a Branch Banking & Trust Co 5,571
• Kabbage, Inc. 5,282
• U.S. Bank, National Association 5,181
• TD Bank, National Association 5,121
• Cross River Bank 4,923
• PNC Bank, National Association 3,531
The vast majority of loans were processed sometime in April, soon after the PPP opened up in late March.
Restaurants in every single state tapped into PPP loans, but California, Texas, New York, Florida and Illinois got the most. As five of the six most populous states, it lines up. Only Illinois supplanted the more populous Pennsylvania, which ranks fifth in population but sixth in restaurant loan originations. See all the state numbers below:
The most active cities were also in line with population. New York restaurants got the most loans, an effect of population but also how hard the city was hit early in the COVID-19 crisis. See the top 10 loan receiving cities below:
• New York 4,124
• Chicago 3,109
• Houston 2,681
• Los Angeles 2,486
• Brooklyn 2,271
• San Francisco 1,952
• Portland 1,638
• Miami 1,590
• Philadelphia 1,529
• San Diego 1,480
As for demographics, the optional answers went mostly unanswered. In all, 202,000 didn’t answer, but among borrowing companies, 67,676 were male owned and 20,601 were owned by women.
In all, 243,700 did not answer questions of race, but 30,169 businesses listed white, 9,604 listed Asian, 5,509 listed Hispanic, 1,014 listed Black or African American and 250 listed American Indian or Alaskan Native.
Some 499 companies that received loans claimed veteran ownership.