Denton businesses received more than $200 million in PPP loans, study finds

A barista at West Oak Coffee Bar takes to-go orders in April 2020. 

A new study looking at which U.S. locations received the most in loans from the Paycheck Protection Program found that Denton businesses received $1,544 in funds per capita.

Ninety-seven percent of the combined $228.8 million in loans, aimed at helping businesses through the COVID-19 pandemic, have been forgiven, according to the analysis by Smartest Dollar. The PPP program allowed companies with less than 500 employees to apply for forgivable loans to help them retain staff and cover expenses during the economic downturn precipitated by stay-at-home orders and mandated closures. More than $800 billion in loans were distributed by the time the program ended in mid-2021, with median PPP loan amounts in Denton topping out at $20,800.

Borrowers were required to spend 60% of the funds on payroll to be eligible for loan forgiveness. Businesses from every industry could apply for the loans, with construction businesses receiving the most funds at $98 billion followed by the health care, professional, scientific and technical industries. In Denton, the health care and social assistance sectors received the most in loans, the study found.

The accommodation and food service industries, hit particularly hard by supply chain issues and dipping demand for dining out, received the fourth-largest takeaway.

Economists for the U.S. Department of the Treasury estimate the program saved nearly 19 million jobs by December 2020, though the figure remains in dispute among other market watchers.

The full analysis is available on Smartest Dollar’s website.

AMBER GAUDET can be reached at 940-566-6889 and via Twitter at @amb_balam.