A few analyses and media reports have suggested New Jersey has been short-changed in the first round of the federal Paycheck Protection Program (PPP).
But NJBIA’s preliminary analysis of April 16 data from the Small Business Administration – the most-up-to-date data available – finds that those analyses may be premature.
“SBA’s final data release of total PPP funding numbers tell a much different story when comparing to earlier version of the incomplete data,” said NJBIA Director of Economic Policy Research Nicole Sandelier. “Many of the reports we are seeing today are using incomplete data to draw conclusions on how certain states ‘fared’ overall.
“Additionally, many of the reports we are seeing are comparing 2017 or 2018 census data to real-time PPP funding information. While that analysis gives a general idea of how states ‘may have fared,’ those analyses should be taken as a baseline estimate, at best, since they are using data points that are well over two years old.”
“There are other factors that could impact these numbers as well. Such as, how hard a state was hit with COVID-19 at the time when the PPP program was accepting applications or a business’ ability to correctly complete their application to be considered.
“We will have a better indication of how New Jersey is faring once we get more information directly from the Small Business Administration. It’s important to not jump to conclusions when the data to do a complete analysis isn’t available yet and when we know another round of federal aid is on its way.”
NJBIA’s analysis of the first round of the $349 billion PPP program, which was exhausted by April 16, showed New Jersey ranking 10th overall in approved state monies with $9.5 billion. In terms of approved loans, New Jersey was ranked 20th in the country with 33,519.
Sandelier added that there are likely tens of thousands New Jersey businesses who are already in the queue for the second round of program funding.
In the meantime, NJBIA and a host of 70+ business organizations have appealed to New Jersey’s congressional delegation on ways to improve the PPP program, including providing greater flexibility in using the funds, expanding the timeframe for the loan forgiveness period and distributing funding directly to business.
The NJBIA Business Coalition letter can be found here.