The coronavirus pandemic sweeping the nation has taken its toll on the trucking industry, but the federal government will not let the industry collapse without a fight. Through the Payroll Protection Program (PPP), which is part of the CARES Act, trucking companies both big and small have applied for loans to keep goods moving, loans that either may be eventually forgiven, completely or partially, or at the very least have a satisfactory interest rate. Here are the statistics.
- The Small Business Administration has given out $521 billion in PPP loans total.
- Of the $521 billion, the trucking industry has received $12 billion (2.3%).
- According to the SBA, 87% of all loans were fewer than $150,000. The lowest loan amount? Ten dollars.
- Texan trucking companies received the largest amount of loaned money, followed by Californian. Alaskan trucking companies received the least. Considering both population count and total trucking companies in those three states, this is hardly a surprise.
- The largest amount of money loaned out in a single loan was not disclosed, but is estimated to exceed $5 million.
- Approximately 102,000 trucking companies received loans from the PPP.
Compared to the YRC Worldwide bailout, and how it was more like a forced purchase of a stake in the company from the US Government, the small trucking businesses got a much better deal. These companies received a lot less money, but with presumably a much lower interest rate, chance for the debt to be forgiven, and were not required to put up a stake in the company as part of the agreement. The SBA has the trucking industry’s back.