After the Paycheck Protection Program (PPP) funds were completely expended and the program closed on May 30, 2021, the Small Business Administration published data on the amount and location of all loans issued under that program.

 OED has analyzed the data for PPP activity in San Jose, and we found some significant points showing the impact of that program on our local economy. OED believes that the PPP loans were pivotal to sustaining many businesses in San Jose during the pandemic and preventing their permanent closure. In summary:

 A total of 13,238 PPP loans were issued to San Jose based businesses with an aggregate value just over $1.75 billion, including both the first and second round of PPP funding.

• Larger businesses as defined with a payroll of more than 35 staff accounted for close to 63% of all funds - $1.1 billion.
• 2,973 loans, 23% of the total, were greater than $150,000 and dominated the approvals, totaling $1.65 billion -  representing  91% of the total dollar value received by businesses in San Jose.
• Loans less than $150,000 dominated the volume of approvals with 10,310 loans, equivalent to 77% of volume but only 9% of loan value. These loans averaged only $11,000 but may have been key to preventing the permanent closure of many small businesses.
• 2,073 businesses many of whom were larger businesses located in the downtown zip codes 95110 , 95112 and 95113 secured close to $550 million in loans.
• 954 small businesses in East Side zip codes 95116 and 95122 secured over $67 million in PPP loans.
• The top sector by dollar value in both rounds was Restaurants with 850 loans exceeding $150 million.
• Bank of America topped the list of lenders.

 The loans are fully forgivable if the business owner use at least 60% to keep workers on the payroll.

OED business development staff worked throughout 2020 and into 2021 with partners to promote the available funding sources and to support and encourage business owners to secure federal and state assistance. This has been a vital to many of our local business neighborhoods and key industries here in the city. PPP funds coming into San Jose businesses have been essential to the survival of many businesses, and their recovery from  the losses sustained over the past 15 months.