Trucking Businesses Make Up Only a Fraction of Those That Secured PPP Loans of $150K
Washington D.C. – More than 3,000 trucking companies have secured Paycheck Protection Program (PPP) loans of at least $150,000.
According to a new report from the Small Business Administration (SBA), a total of 3,205 long-haul trucking companies have received a PPP loan of $150,000 or more.
The trucking sector represents only 0.5 percent of all loan recipients of more than $150,000.
Truckload carriers were awarded 2,886 PPP loans while less-than-truckload companies were awarded 319 loans.
Just over 800 third-party logistics companies also received loans of at least $150,000.
A total of 33 trucking companies received between $5 million and $10 million in PPP loans.
Of all loans awarded to trucking companies thus far, 52 percent are valued at $150,000 to $300,000.
Last month, Maurice Fayne — star of VH1’s “Love & Hip Hop: Atlanta” — was indicted by a federal grand jury on multiple charges connected with misuse of funds from a Paycheck Protection Program (PPP) he obtained in the name of Flame Trucking.
Fayne applied for a PPP loan in excess of $3.7 million and was ultimately awarded just over $2 million, which authorities say he used for a Rolls Royce, jewelry, and child support.
Read more about that case HERE.
On July 4, President Donald Trump signed legislation into law that extends the PPP until August 8, 2020.
The PPP first launched in response to the devastating economic impact caused by widespread COVID-19 mitigation policies.
After getting off to a bit of a rocky start, like most bureaucratically managed programs frequently do, the PPP has since lowered requirements.
For instance, initially businesses were required to pay 75 percent of the loan amount in payroll.
That has since been dropped to 60 percent.
Another stipulation early on was that businesses must use the payroll amount within eight weeks.
However, new requirements allow use for up to 24 weeks.
So far, nearly 4.9 million loans have been approved by nearly 5,500 lenders.
A staggering $521,150,924,128 has been loaned through the PPP to date, according to the SBA.
To learn more, click HERE.