SCOTTSDALE, Ariz.–A new analysis of where Paycheck Protection Loans have gone reveals more details into who is getting what, how much is being spent per job saved, where credit unions fit in, and more.
The analysis, performed by Ron Shevlin of Cornerstone Advisors, was published first on Forbes.com, where Shevlin is a contributor.
Shevlin analyzed the data released by the Small Business Administration for loans above $150,000, which represents a total of 660,000 loans valued at more than $429 billion. In releasing the analysis, Shevlin added the caveat that “to put it mildly, the veracity of the PPP loan data set is questionable.”
To determine how well the loans performed, Shevlin said he calculated two metrics: 1) Jobs Retained per $1 Million, and 2) Loan $ Per Retained Job, which he acknowledged are two sides of the same coin.
Shevlin offered the following analysis:
Loan Performance by Financial Institutions
PPP loans from credit unions helped to retain 85 jobs per $1 million in loans and required just $11,792 to retain one job. “But that was based on the smallest tranche of loans across the various types of financial institutions,” he said.
In terms of the loan performance metrics, Shevlin said he found there was general parity across the megabanks, large regionals, and community banks, who combined accounted for 98% of the loans.
The highest performing financial institution was Traders & Farmers Bank which helped retained 110 jobs on $250,000 of loans, a rate of 440 jobs retained per $ 1 million in loans, he said. The worst performer? “That honor goes to American National Bank whose $236 million in loans helped retained one job,” according to Shevlin.
Other institutions with a Loan $ per Retained Job in excess of $1 million, according to Shevlin, included Ally Bank ($4.8 million), Associated Bank ($5 million), and Alpine Bank whose $208 million in loans saved 16 jobs, a rate of $13 million per job.
Loans By Industry
According to Shevlin, combined, manufacturing, professional services, health care, and construction companies—which comprise 36% of all businesses——took in 52% of PPP loans, each raking in more than $50 billion in loans.
Of all loans, 13% were for $1 million or more. Among the loans to management and education companies, however, one in five exceeded $1 million, Shevlin said.
Loans by Business Type
Corporations accounted for roughly 40% of loan volume and retained jobs, followed by limited liability companies (LLCs) at about a quarter of both metrics. Shevlin.
The full article can be found here.