The Paycheck Protection Program was the centerpiece of the federal government’s relief efforts to keep millions of small businesses afloat during the coronavirus pandemic. But new data shows what many had suspected all along: The money was shared unevenly, with the biggest sums going to a sliver of the companies in need, the New York Times reported. Detailed loan information released by the Small Business Administration late on Tuesday showed that a mere 1 percent of the program’s 5.2 million borrowers — those seeking $1.4 million and above — received more than a quarter of the $523 billion disbursed. About 600 businesses — including powerful law firms like Boies Schiller Flexner, restaurants like the steakhouse chain started by Ted Turner, as well as the operator of New York’s biggest horse tracks — received the maximum loan amount of $10 million, according to the data. It was the first full accounting of how federal money was spent through the program. Aimed at small companies — generally those with 500 or fewer workers — the program provided forgivable loans to desperate business owners who were faced with widespread shutdowns. But the program allowed businesses to take enough money to cover only a couple of months’ expenses, and it has come under criticism for its poorly defined rules and a hasty and haphazard rollout that allowed fraudsters to tap into the money, which will take years of litigation to sort out. The newly released data also includes details of loans made under the Economic Injury Disaster Loan system, a longstanding Small Business Administration program that was vastly expanded to offer relief to businesses affected by the pandemic. Together, the two programs spread more than $700 billion to struggling companies in just a few months.
