Nearly 555,000 Washington jobs were saved thanks to federal small business loans
More than 555,000 jobs in Washington were retained as employers received $12.3 billion worth of federal loans under the Paycheck Protection Program, a massive economic relief effort aimed at helping small businesses survive the worst economic downturn in decades.
The state’s unemployment rate was 15.1% in May, a slight improvement over April, but far above the 4.4% of a year earlier. Employment over the year was down by 408,200.
The loan program was designed to help small businesses keep employees on the payroll, but it has been dogged by controversy. Some small business owners found money was not available and loans were made to major corporations.
Data released this week by the Small Business Administration said that since the program began in March, the government has made 4.88 million loans nationwide worth $521.4 billion. The funds helped save an estimated 51.1 million jobs, the SBA said.
In Washington state, about 74% of the estimated small business payroll across the state was covered by the loans. Loans need not be repaid as long as most of the funding is used for payroll.
Construction, health care and professional, scientific and technical services had the highest percentage of retained jobs. Of the 15,848 loans, 114 were between $5 million and $10 million, while 9,157 were $150,000 to $350,000.
A data analysis by McClatchy found these figures for Washington state loans of more than $150,000:
▪ 6th Congressional District, including much of Tacoma and the Olympic peninsula. A total of 1,422 loans were made and 48,160 jobs were retained. Ten companies received loans of between $5 million and $10 million, while 858 got loans of $150,000 to $350,000.
▪ 1st Congressional District, including much of Whatcom County and Seattle suburbs. A total of 3,222 loans and 104,484 jobs retained. Most of the loans — to 1,839 businesses or others such as nonprofits —were between $150,000 and $350,000.
▪ 2nd Congressional District, which includes Bellingham. A total of 799 loans were made, and an estimated 25,956 jobs were saved. More than half, 472, were between $150,000 and $350,000.
▪ 4th Congressional District, which includes Franklin and Benton counties. A total of 1,408 loans were given and 59,925 jobs were retained. Three firms were listed as receiving loans between $5 million and $10 million: Christensen, Inc., of Richland, where 308 jobs were retained; Community Health of Central Washington, with 343 jobs saved, and Gilbert Orchards in Yakima.
▪ 10th Congressional District, which includes parts of Pierce and Thurston counties. A total of 578 loans were made and 15,211 jobs were retained. Only the Korean Women’s Association was reported to get a loan between $5 million and $10 million, which the SBA said helped save 485 jobs.
The program still has $130 billion available for loans nationwide. It was supposed to end June 30, but Congress last week approved an extension through Aug. 8.
Brian Murphy of the Raleigh News & Observer Washington Bureau contributed to this report.
This story was originally published July 8, 2020 at 5:11 AM with the headline "Nearly 555,000 Washington jobs were saved thanks to federal small business loans."
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