The Paycheck Protection Program may be depleted, but some states are more flush with cash than others.
Nebraska businesses received $2.7 billion in loans, which covers about 75% of their payroll employees. California businesses, however, received $20.9 billion, but that amount will cover less than 25% of the state’s payroll expenses. Large, populous states appear to have fared worse in nabbing their share of stimulus loan funds than less densely populated states.
Ernie Tedeschi, the Evercore analyst who calculated the figures, offered a few theories as to why this may have occurred, according to CPA Practice Advisor. Regions hit harder by the virus and had early lockdowns may have had more trouble getting lending rolling. In addition, businesses in hard-hit states may not have applied because the program funds weren’t enough to make a financial impact. There is also the possibility that businesses in some states maintained pre-existing relationships with community banks and were able to get applications submitted quickly.