California Businesses get Major Share of Virus-Related Disaster Loan

California businesses have already received more than $239 million in loans from the Small Business Administration (SBA), far more than those in any other state. 

The SBA has given out about $357 million via 1,790 disaster-relief loans, according to Bloomberg. California companies have received the lion’s share of the funds, while Texas, the second-most populous state, received six loans worth less than $1 million. Businesses in about a dozen states received no SBA loans at all. 

The reason behind the disparity is due to the fact that some states were quicker to declare disasters than others, an SBA spokeswoman told Bloomberg. The SBA began accepting loan applications in each state only after its governor declared a disaster.

California, Washington, Connecticut and Maine were among the first to declare disaster, allowing the SBA to authorize lending as early as March 16. Other states did not join until March 21, allowing businesses in the initial states to get to the front of the line for loans much quicker.