Approximately 6,300 companies located in Texas availed a loan from the federal authorities. By the spring-fall, the value of each loan was estimated to be $1 million. The government tried to make the best use of their money to avoid their state’s economy from declining.
On Monday, the Trump administration issued the data, according to which around 400 Texas-based companies have availed the loan ranging between $5 million-$15 million.
The companies participating in the PPP (Paycheck Protection Program) federal program include several popular restaurant chains. Those are— the parent company of Pappadeaux Seafood Kitchen and Pappasito’s Cantina, popularly known as Pappas restaurants;
Rosa’s Cafe and Tortilla Factory; Luby’s Cafeteria chain; TGI Friday’s; Pei Wei Asian Diner. Each restaurant mentioned in their application that the loan will help the save 500 jobs.
The dataset also included several nonprofit organizations, gas and oil industries, car dealerships, colleges, zoos, churches, law firms, and medical practices, for whom the loan was approved.
The report released on Monday provided a detailed insight into the companies and businesses that received loans from the PPP.
This program allowed the companies to put forward a request for the loan if their business is suffering negatively due to the pandemic. In return, the company owners need to follow some mandatory guidelines that included retaining their employees. If the guidelines were successfully followed the taxpayer funds will be changed into grants and the owners won’t need to repay them.
The federal authorities revealed the name of the 52,150 Texas-based nonprofit organizations and businesses who availed the loan. Approximately 46,000 such businesses received a loan value of less than $1 million.
However, some of the bigger franchises like Taco Cabana and Pizza Inn successfully received small business loans, and the credit goes to the choice of words used in the CARES Act responsible for creating the program in the first place.
According to the act, small businesses are the ones whose employee strength is less than 500 including any one location.
Besides, the small company owners felt annoyed and dissatisfied with this ongoing process. To avoid any disagreements, the banks started screening the applications. The business owners who do not keep up with banks and similarly low-priority customers expressed their grievance for being transferred on the back of the line throughout the loan distribution procedure.