California Got The Most Money, But More Texas Businesses Got Coronavirus Federal Relief
(CNN) -- More small businesses in Texas were approved for money from the federal government's initial coronavirus emergency lending program than in any other state -- including harder-hit New York, California and Florida.
Nearly 135,000 loans were approved for businesses in Texas in the first wave, totaling almost $28.5 billion, according to data released by the Small Business Administration.
Texas was trailed closely by California, where 112,967 loans were granted, totaling about $33.4 billion -- ahead of Texas and any other state.
California has about 1.4 million more small businesses than Texas, according to the SBA. It was one of the first states to put a shelter in place order into effect in March. In Texas, where the outbreak has been less widespread, statewide stay-at-home orders didn't take effect until early April.
Florida received the third highest number of loans, 88,997, followed by New York where 81,075 business owners were approved.
The Small Business Administration gave out 1.6 million loans, worth more than $342 billion through the Paycheck Protection Program -- until it ran out of money last Thursday, after just two weeks.
Congress is set to approve a fourth coronavirus relief package that will provide an additional $310 billion for the small business lending program. It's unclear how quickly those funds would become available, or how long they will last.
Small business owners are desperate for cash and while the government rolled out the paycheck program quickly, it was riddled with glitches and difficulties. Many small business owners who submitted applications for the first-come first-served program have yet to be approved. They apply online and the loan is made by a SBA-approved lender.
Generally, any small business with 500 or fewer employees is eligible. The money is meant to help owners continue to pay their employees and their overhead costs in order to stay afloat for the next two months. The loan will be forgiven if the funds are used to pay those kinds of expenses.
Only one loan is permitted per business. They are made in an amount equal to two-and-a-half months of average monthly payroll costs in 2019.
In recent days, the program has come under attack for allowing big chain restaurants and hotels to receive sizable loans while small mom and pop shops are still waiting to see any money. Shake Shack has since announced it would return the $10 million loan.
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