Report: More than 3,200 long-haul trucking companies received PPP loans
July 7, 2020
A total of 3,205 long-haul trucking companies received at least $150,000 in Paycheck Protection Program loans according to a report released by the Small Business Administration on July 5.
The report lists all businesses receiving PPP loans valued at $150,000 or more. An SBA news release says 4.9 million loans have been approved in total. The report lists more than 660,000 loans of more than $150,000 paid out.
Each business was classified in the report by a North American Industry Classification number or NAICS number. Long-haul trucking in particular is represented by two categories, “general freight trucking long distance, long distance, truckload” and “general freight trucking long distance, long distance, less than truckload.”
The combined trucking sector represented less than 0.5% of all recipients of the loans valued at $150,000 or more.
The truckload sector was awarded 2,886 PPP loans while the less-than-truckload sector was awarded 319 loans. Only 33 companies, truckload and LTL combined, received between $5 million and $10 million in PPP loans. The vast majority of loans, 52%, detailed in the report going to trucking companies were valued at $150,000 to $300,000.
President Donald Trump signed into law on Saturday, July 4, a bill that extends the deadline for small businesses to apply for a Paycheck Protection Program loan.
The bill, which was passed by the House last week, means the program will remain open until Aug. 8. As of last week, about $130 billion remained in the fund.
The program was criticized from the outset for being too rigid in its requirements. The requirements have been loosened up somewhat after Congress passed legislation providing more flexibility.
Flexibility would be provided by lowering the amount of the PPP loan that must be used on payroll from 75% to 60%, by increasing the period businesses have to use the loan from eight weeks to 24, by expanding the two-year loan maturity to five years for new loans, and by allowing for businesses receiving a loan to take advantage of the employer payroll tax deferment.
More information about the Paycheck Protection Program and instructions on how to apply can be found here.