RI Ranks Poorly in Securing Small Business PPP Stimulus Funds

RI Ranks Poorly in Securing Small Business PPP Stimulus Funds

Rhode Island ranks 36th in the United States for securing monies under the Payroll Protection Plan (PPP) via the federal stimulus program according to data released by the U.S. Small Business Administration.

The ranking is based on the percentage of eligible payroll dollars secured.

Governor Gina Raimondo first mentioned the program on the day the application program was opened. And by then, much of the federal $349 billion had already been applied for.

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The funding program was exhausted in less than two weeks, although Congress is expected to approve more funding as early as Monday.

Raimondo’s press office refused to answer questions about why the governor failed to promote the program earlier and only spoke about the program in detail -- the day it opened.

Rhode Island only secured $875 million. In comparison, Maine which has a population 27% larger in population secured more 95% more in federal funds than Rhode Island.

Maine secured funding for 66% of its eligible payroll and Rhode Island just 38%.

The analysis of the data was released by the SBA and breaks down the first $247 billion of the awarded funds.

Ernie Tedeschi, the Evercore analyst who calculated the eligible payroll figures, told Bloomberg that one of the possibilities why some states performed poorly was that businesses in some states had better pre-existing relationships with community banks that were able to get applications submitted quickly.

Federal Action Pending

After hearing from frustrated small businesses who have applied and been approved to receive federal aid, but have yet to receive any funding, U.S. Senator Jack Reed is urging the Trump Administration to prioritize small businesses and streamline the PPP and Economic Injury Disaster Loan program (EIDL) process. 

Reed is also urging Congress to quickly and unanimously pass bipartisan legislative fixes to the CARES Act and provide an additional $250 billion for PPP and $50 billion for EIDL, along with $15 billion for disaster grants to ensure small businesses can access the direct financial support they need.

According to multiple reports, the White House and Congress are close to approving additional funding. “I’m hopeful we can reach an agreement the Senate can pass tomorrow and the House can pass Tuesday,” Treasury Secretary Steven Mnuchin said Sunday on CNN. “We’re making a lot of progress.”