Key findings include:
• Number of Businesses Receiving Loans: In Northern Virginia 40,743 businesses received loans. This was approximately 13% of small businesses in Northern Virginia. Nationally, approximately 9% of small businesses received loans.
• Number of Jobs per Loan: Until accurate jobs data is released from the PPP loan forgiveness, it will be unknown how many jobs were retained from the loan programs. As an alternate measure, the number of overall jobs in small businesses was assessed. In Northern Virginia, there were an estimated 1.4 million jobs in small businesses under 500 employees. Nationally, there are an estimated 195 million jobs in small businesses. In Northern Virginia there were 35 small business employees per loan, and the nation is similar with 37 small business employees per loan.
• Loaned Amount: Northern Virginia small businesses received $5.5 Billion in loans.
• Average Loan Amount: The average loan in Northern Virginia was $135,111. This was 34% higher than the national average of $100,729.
• Average Loan Amount per Job: As previously mentioned, Northern Virginia has an estimated 1.4 million jobs in small businesses under 500 employees. Nationally, there are an estimated 195 million jobs in small businesses. The average loan amount per small business employee was $3,800 in Northern Virginia compared to $2,700 nationally.
• Distribution of Loans by Loan Amount: In Northern Virginia, 89% of businesses received loans in the amount of $250,000 or less. However, only 30% of funds ($1.65 billion) went to these businesses. The remaining funds, $3.85 billion, went to 11% of businesses. Because funding was based on payroll, those businesses receiving the largest amount of funds likely have a sizeable employee base rather than being the smallest of small businesses.
• Minority Racial/Ethnic Communities: On the PPP Loan Dashboard is a map of majority minority area overlaid with the number of PPP loans and the amount loaned by area. Out of the region’s 520 census tracts, 216 (42%) were majority-minority. These same 212 tracts contained 45% of businesses receiving loans and 46% of the total loaned amount in Northern Virginia. What is not known from the PPP data is how many of the loans went to minority business owners. However, similar to the nation, the most cash strapped minority business owners are the ones that likely did not receive loans in our region. It is important that minority business owners are treated equally.
• Immigrant Communities: On the PPP Loan Dashboard is a map of foreign born (immigrants) population overlaid with the number of PPP loans and the amount loaned by area. The loans appear to have been distributed fairly among immigrant and nonimmigrant communities. Out of the region’s 520 census tracts, 86 (16%) had high concentration of foreign born (40%+ foreign born). These same 86 tracts contained 17% of businesses receiving loans and 20% of the total loaned amount in Northern Virginia. What is not known from the PPP data is how many of the loans went to immigrant business owners. However, similar to the nation, the most cash strapped businesses are the ones that likely did not receive loans in our region. It is important that immigrant business owners are treated equally. The immigrant population is essential to our country’s rapid COVID-19 response efforts. Out of all entrepreneurs in the Northern Virginia region, 42.5% are immigrants. Between one-quarter and one-half of all entrepreneurs in the non-essential industries of retail trade, healthcare and social services, educational services, professional services, and manufacturing are foreign born.