States getting the most help from PPP loans

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States throughout the Great Plains are so far seeing the biggest impact of Paycheck Protection Program loans — funds designed to help small businesses stay afloat during the coronavirus pandemic. The PPP allows business owners to keep workers on the payroll even while remaining partially or fully closed.

The U.S. Small Business Administration (SBA) approved more than $342 billion in PPP loans in the first round of funding, which ended April 16, and more than $188 billion in round two as of May 8. The program continues through June 30, or until funding runs out. Populous states like New York, California and Texas have been approved for some of the highest total amounts in both rounds.

But a different picture emerges when you take a look at each state’s average hourly cost of labor. PPP loans stand to go further in several Great Plains states plus Louisiana, Idaho, Maine and Vermont. These states may be in a stronger position to weather the effects of the coronavirus pandemic, based on how long workers there could remain employed on PPP funds alone. Of course, business owners are permitted to use PPP loan funds on other expenses, including rent, mortgage interest and utilities.

Image Credit: Kerkez/iStock.

Methodology

States getting the most help from PPP loans

In order to rank the states in which PPP funds would cover the most hours of work, we compared the amount each state has been approved for in PPP loans to the number of workers and average employer cost of each hour of work (data from U.S. Bureau of Labor Statistics, 2019). We divided the total amount in approved PPP loans by the number of workers (this gives us total PPP loans per worker) and then by the average employer cost per hour worked. The final number is the number of hours each worker in the state could be paid by the amount of approved PPP loans.

In order to estimate the average employer cost of labor per state we used two metrics:

  • State hourly earnings multiplier. This is the state’s hourly earnings by worker divided by the national average of hourly earnings per worker.
  • National cost of employing a worker. This is the average cost of employing a worker at the national level. It includes not only the cost of paying a worker but also providing benefits for that worker.

We then multiplied the state hourly earnings multiplier by the national cost of employing a worker. For example, Alabama workers earn 84% of the national average. Thus using that multiplier, we assumed that, including benefits, it costs 84% of the national average to employ an Alabaman worker.

For example, including earnings and benefits, the national average cost of one hour of work is $37.10. The national average for earnings is $25.72. In Alabama, the average hourly earnings is $21.60. To determine the average cost of labor in Alabama then we divided $21.60 by $25.72 giving us .84 or 84%. That shows that on average Alabama workers earn 84% of the national average. We multiplied that number by the total cost of compensation figure ($37.10) to arrive at the final figure for Alabama: $31.16.

Here’s how much business owners in each state and the District of Columbia have been approved for:

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51. District of Columbia

States getting the most help from PPP loans

Approved PPP amount: $2,312,874,920

Hourly cost of compensation for labor: 62.27

Total workers: 723,510

Value of approved PPP in hours of labor: 37,142,160

Value of approved PPP in hours of labor per worker: 51.3

Image Credit: Sean Pavone/shutterstock.

50. New Mexico

States getting the most help from PPP loans

Approved PPP amount: $2,243,397,920

Hourly cost of compensation for labor: 32.61

Total workers: 823,570

Value of approved PPP in hours of labor: 68,786,436

Value of approved PPP in hours of labor per worker: 83.5

Image Credit: Deposit Photos.

49. North Carolina

States getting the most help from PPP loans

Approved PPP amount: $12,702,340,652

Hourly cost of compensation for labor: 33.67

Total workers: 4,462,800

Value of approved PPP in hours of labor: 377,294,052

Value of approved PPP in hours of labor per worker: 84.5

Image Credit: Sean Pavone / iStock.

48. Virginia

States getting the most help from PPP loans

Approved PPP amount: $13,059,061,099

Hourly cost of compensation for labor: 39.35

Total workers: 3,878,770

Value of approved PPP in hours of labor: 331,867,438

Value of approved PPP in hours of labor per worker: 85.6

Image Credit: DepositPhotos.com.

47. Washington

States getting the most help from PPP loans

Approved PPP amount: $12,353,786,983

Hourly cost of compensation for labor: 43.01

Total workers: 3,318,510

Value of approved PPP in hours of labor: 287,203,365

Value of approved PPP in hours of labor per worker: 86.5

Image Credit: DepositPhotos.com.

46. West Virginia

States getting the most help from PPP loans

Approved PPP amount: $1,837,071,249

Hourly cost of compensation for labor: 30.12

Total workers: 702,100

Value of approved PPP in hours of labor: 60,994,765

Value of approved PPP in hours of labor per worker: 86.9

Image Credit: iStock.

45. Delaware

States getting the most help from PPP loans

Approved PPP amount: $1,486,300,695

Hourly cost of compensation for labor: 37.71

Total workers: 451,900

Value of approved PPP in hours of labor: 39,418,324

Value of approved PPP in hours of labor per worker: 87.2

Image Credit: Getty.

44. Arizona

States getting the most help from PPP loans

Approved PPP amount: $8,859,612,866

Hourly cost of compensation for labor: 35.33

Total workers: 2,866,820

Value of approved PPP in hours of labor: 250,797,391

Value of approved PPP in hours of labor per worker: 87.5

Image Credit: Davel5957/istockphoto.

43. Maryland

States getting the most help from PPP loans

Approved PPP amount: $10,094,683,411

Hourly cost of compensation for labor: 41.76

Total workers: 2,701,010

Value of approved PPP in hours of labor: 241,735,921

Value of approved PPP in hours of labor per worker: 89.5

Image Credit: DepositPhotos.com.

42. South Carolina

States getting the most help from PPP loans

Approved PPP amount: $5,826,882,361

Hourly cost of compensation for labor: 30.78

Total workers: 2,107,760

Value of approved PPP in hours of labor: 189,294,890

Value of approved PPP in hours of labor per worker: 89.8

Image Credit: Kruck20 / iStock.

41. Nevada

States getting the most help from PPP loans

Approved PPP amount: $4,111,052,430

Hourly cost of compensation for labor: 32.74

Total workers: 1,392,680

Value of approved PPP in hours of labor: 125,552,167

Value of approved PPP in hours of labor per worker: 90.2

Image Credit: DepositPhotos.com.

40. Massachusetts

States getting the most help from PPP loans

Approved PPP amount: $15,039,265,688

Hourly cost of compensation for labor: 45.55

Total workers: 3,619,640

Value of approved PPP in hours of labor: 330,150,197

Value of approved PPP in hours of labor per worker: 91.2

Image Credit: Sean Pavone/iStock.

39. Kentucky

States getting the most help from PPP loans

Approved PPP amount: $5,308,869,062

Hourly cost of compensation for labor: 30.52

Total workers: 1,896,900

Value of approved PPP in hours of labor: 173,933,568

Value of approved PPP in hours of labor per worker: 91.7

Image Credit: Jacqueline Nix / iStock.

38. New York

States getting the most help from PPP loans

Approved PPP amount: $39,135,115,146

Hourly cost of compensation for labor: 44.37

Total workers: 9,522,980

Value of approved PPP in hours of labor: 822,017,779

Value of approved PPP in hours of labor per worker: 92.6

Image Credit: DepositPhotos.com.

37. California

States getting the most help from PPP loans

Approved PPP amount: $69,215,924,449

Hourly cost of compensation for labor: 42.51

Total workers: 17,382,400

Value of approved PPP in hours of labor: 1,628,256,957

Value of approved PPP in hours of labor per worker: 93.7

Image Credit: DepositPhotos.com.

36. Arkansas

States getting the most help from PPP loans

Approved PPP amount: $3,386,162,473

Hourly cost of compensation for labor: 29.6

Total workers: 1,217,420

Value of approved PPP in hours of labor: 114,400,386

Value of approved PPP in hours of labor per worker: 94

Image Credit: DepositPhotos.com.

35. Georgia

States getting the most help from PPP loans

Approved PPP amount: $14,581,792,916

Hourly cost of compensation for labor: 34.4

Total workers: 4,471,860

Value of approved PPP in hours of labor: 423,857,232

Value of approved PPP in hours of labor per worker: 94.8

Image Credit: DepositPhotos.com.

34. Connecticut

States getting the most help from PPP loans

Approved PPP amount: $6,877,466,024

Hourly cost of compensation for labor: 43.24

Total workers: 1,665,100

Value of approved PPP in hours of labor: 159,035,427

Value of approved PPP in hours of labor per worker: 95.5

Image Credit: Sean Pavone / iStock.

33. Tennessee

States getting the most help from PPP loans

Approved PPP amount: $9,155,306,941

Hourly cost of compensation for labor: 31.66

Total workers: 3,007,710

Value of approved PPP in hours of labor: 289,158,151

Value of approved PPP in hours of labor per worker: 96.1

Image Credit: Swarmcatcher.

32. Indiana

States getting the most help from PPP loans

Approved PPP amount: $9,664,484,919

Hourly cost of compensation for labor: 32.44

Total workers: 3,073,680

Value of approved PPP in hours of labor: 297,910,844

Value of approved PPP in hours of labor per worker: 96.9

Image Credit: DepositPhotos.com.

31. Texas

States getting the most help from PPP loans

Approved PPP amount: $42,343,964,031

Hourly cost of compensation for labor: 35.01

Total workers: 12,431,200

Value of approved PPP in hours of labor: 1,209,535,976

Value of approved PPP in hours of labor per worker: 97.3

Image Credit: DenisTangneyJr.

30. Oregon

States getting the most help from PPP loans

Approved PPP amount: $7,023,327,152

Hourly cost of compensation for labor: 37.37

Total workers: 1,905,860

Value of approved PPP in hours of labor: 187,919,799

Value of approved PPP in hours of labor per worker: 98.6

Image Credit: DepositPhotos.com.

29. Colorado

States getting the most help from PPP loans

Approved PPP amount: $10,660,313,740

Hourly cost of compensation for labor: 40

Total workers: 2,678,490

Value of approved PPP in hours of labor: 266,512,247

Value of approved PPP in hours of labor per worker: 99.5

Image Credit: DepositPhotos.com.

28. Illinois

States getting the most help from PPP loans

Approved PPP amount: $22,946,134,453

Hourly cost of compensation for labor: 38.24

Total workers: 6,025,790

Value of approved PPP in hours of labor: 600,063,017

Value of approved PPP in hours of labor per worker: 99.6

Image Credit: ibsky.

27. Missouri

States getting the most help from PPP loans

Approved PPP amount: $9,354,061,763

Hourly cost of compensation for labor: 33.16

Total workers: 2,820,610

Value of approved PPP in hours of labor: 282,070,921

Value of approved PPP in hours of labor per worker: 100

Image Credit: DepositPhotos.com.

26. Alaska

States getting the most help from PPP loans

Approved PPP amount: $1,308,107,954

Hourly cost of compensation for labor: 41.12

Total workers: 317,090

Value of approved PPP in hours of labor: 31,808,517

Value of approved PPP in hours of labor per worker: 100.3

Image Credit: Chilkoot/iStock.

25. Rhode Island

States getting the most help from PPP loans

Approved PPP amount: $1,928,966,287

Hourly cost of compensation for labor: 39.68

Total workers: 483,580

Value of approved PPP in hours of labor: 48,610,613

Value of approved PPP in hours of labor per worker: 100.5

Image Credit: SeanPavonePhoto/iStock.

24. Iowa

States getting the most help from PPP loans

Approved PPP amount: $5,171,216,826

Hourly cost of compensation for labor: 32.83

Total workers: 1,549,460

Value of approved PPP in hours of labor: 157,513,414

Value of approved PPP in hours of labor per worker: 101.7

Image Credit: ChrisBoswell/iStock.

23. Mississippi

States getting the most help from PPP loans

Approved PPP amount: $3,189,706,683

Hourly cost of compensation for labor: 27.8

Total workers: 1,128,280

Value of approved PPP in hours of labor: 114,753,539

Value of approved PPP in hours of labor per worker: 101.7

Image Credit: iStock.

22. Minnesota

States getting the most help from PPP loans

Approved PPP amount: $11,365,231,552

Hourly cost of compensation for labor: 38.76

Total workers: 2,880,650

Value of approved PPP in hours of labor: 293,229,511

Value of approved PPP in hours of labor per worker: 101.8

Image Credit: DepositPhotos.com.

21. Pennsylvania

States getting the most help from PPP loans

Approved PPP amount: $21,438,616,497

Hourly cost of compensation for labor: 35.6

Total workers: 5,901,590

Value of approved PPP in hours of labor: 602,210,959

Value of approved PPP in hours of labor per worker: 102

Image Credit: weaver1234.

20. Ohio

States getting the most help from PPP loans

Approved PPP amount: $19,054,028,555

Hourly cost of compensation for labor: 34.27

Total workers: 5,447,780

Value of approved PPP in hours of labor: 555,952,170

Value of approved PPP in hours of labor per worker: 102.1

Image Credit: User:OHWiki .

19. New Jersey

States getting the most help from PPP loans

Approved PPP amount: $17,555,336,569

Hourly cost of compensation for labor: 41.6

Total workers: 4,087,950

Value of approved PPP in hours of labor: 421,998,550

Value of approved PPP in hours of labor per worker: 103.2

Image Credit: ChrisBoswell/iStock.

18. Alabama

States getting the most help from PPP loans

Approved PPP amount: $6,388,445,582

Hourly cost of compensation for labor: 31.16

Total workers: 1,974,170

Value of approved PPP in hours of labor: 205,039,958

Value of approved PPP in hours of labor per worker: 103.9

Image Credit: DepositPhotos.com.

17. Wisconsin

States getting the most help from PPP loans

Approved PPP amount: $10,103,034,914

Hourly cost of compensation for labor: 33.88

Total workers: 2,870,050

Value of approved PPP in hours of labor: 298,171,336

Value of approved PPP in hours of labor per worker: 103.9

Image Credit: Pixabay.com.

16. Hawaii

States getting the most help from PPP loans

Approved PPP amount: $2,533,474,375

Hourly cost of compensation for labor: 38.1

Total workers: 635,500

Value of approved PPP in hours of labor: 66,503,602

Value of approved PPP in hours of labor per worker: 104.6

Image Credit: DepositPhotos.com.

15. Michigan

States getting the most help from PPP loans

Approved PPP amount: $16,203,459,935

Hourly cost of compensation for labor: 35.22

Total workers: 4,344,230

Value of approved PPP in hours of labor: 460,001,401

Value of approved PPP in hours of labor per worker: 105.9

Image Credit: DepositPhotos.com.

14. New Hampshire

States getting the most help from PPP loans

Approved PPP amount: $2,618,853,969

Hourly cost of compensation for labor: 37.42

Total workers: 660,480

Value of approved PPP in hours of labor: 69,990,382

Value of approved PPP in hours of labor per worker: 106

Image Credit: DepositPhotos.com.

13. Utah

States getting the most help from PPP loans

Approved PPP amount: $5,466,410,096

Hourly cost of compensation for labor: 34.27

Total workers: 1,504,070

Value of approved PPP in hours of labor: 159,497,114

Value of approved PPP in hours of labor per worker: 106

Image Credit: AndreyKrav.

12. Nebraska

States getting the most help from PPP loans

Approved PPP amount: $3,502,020,462

Hourly cost of compensation for labor: 33.47

Total workers: 982,040

Value of approved PPP in hours of labor: 104,647,233

Value of approved PPP in hours of labor per worker: 106.6

Image Credit: DepositPhotos.com.

11. Florida

States getting the most help from PPP loans

Approved PPP amount: $31,273,758,992

Hourly cost of compensation for labor: 33.12

Total workers: 8,794,050

Value of approved PPP in hours of labor: 944,289,707

Value of approved PPP in hours of labor per worker: 107.4

Image Credit: DepositPhotos.com.

10. Oklahoma

States getting the most help from PPP loans

Approved PPP amount: $5,545,658,087

Hourly cost of compensation for labor: 31.63

Total workers: 1,617,390

Value of approved PPP in hours of labor: 175,311,947

Value of approved PPP in hours of labor per worker: 108.4

Image Credit: DepositPhotos.com.

9. Vermont

States getting the most help from PPP loans

Approved PPP amount: $1,204,993,245

Hourly cost of compensation for labor: 35.46

Total workers: 306,300

Value of approved PPP in hours of labor: 33,985,979

Value of approved PPP in hours of labor per worker: 111

Image Credit: iStock.

8. Maine

States getting the most help from PPP loans

Approved PPP amount: $2,289,550,742

Hourly cost of compensation for labor: 33.61

Total workers: 611,170

Value of approved PPP in hours of labor: 68,122,630

Value of approved PPP in hours of labor per worker: 111.5

Image Credit: iStock.

7. Wyoming

States getting the most help from PPP loans

Approved PPP amount: $1,052,322,090

Hourly cost of compensation for labor: 34.5

Total workers: 273,340

Value of approved PPP in hours of labor: 30,498,927

Value of approved PPP in hours of labor per worker: 111.6

Image Credit: Public domain.

6. Kansas

States getting the most help from PPP loans

Approved PPP amount: $5,162,470,033

Hourly cost of compensation for labor: 32.27

Total workers: 1,392,480

Value of approved PPP in hours of labor: 159,988,444

Value of approved PPP in hours of labor per worker: 114.9

Image Credit: Ian Ballinger .

5. Idaho

States getting the most help from PPP loans

Approved PPP amount: $2,613,933,893

Hourly cost of compensation for labor: 31.13

Total workers: 727,160

Value of approved PPP in hours of labor: 83,973,105

Value of approved PPP in hours of labor per worker: 115.5

Image Credit: DepositPhotos.com.

4. Montana

States getting the most help from PPP loans

Approved PPP amount: $1,767,912,404

Hourly cost of compensation for labor: 31.46

Total workers: 468,000

Value of approved PPP in hours of labor: 56,195,577

Value of approved PPP in hours of labor per worker: 120.1

Image Credit: DepositPhotos.com.

3. North Dakota

States getting the most help from PPP loans

Approved PPP amount: $1,794,651,598

Hourly cost of compensation for labor: 34.98

Total workers: 422,520

Value of approved PPP in hours of labor: 51,305,682

Value of approved PPP in hours of labor per worker: 121.4

Similar to South Dakota, third-place North Dakota has 422,520 employees in the state. Businesses in North Dakota have been approved for nearly $1.8 billion in PPP loans, which could support 121.4 hours for every employee in the state, based on an hourly labor cost of $34.98 per person.

About 24% of North Dakota businesses were approved for PPP loans in the first and second round of funding. Like in Louisiana, restaurants, salons, bars and gyms have recently been allowed to reopen at limited capacity. North Dakota businesses are required to follow industry-specific guidelines when reopening or risk facing fines up to $1,000.

Image Credit: sequential5.

2. Louisiana

States getting the most help from PPP loans

Approved PPP amount: $7,372,097,929

Hourly cost of compensation for labor: 30.64

Total workers: 1,921,950

Value of approved PPP in hours of labor: 240,621,061

Value of approved PPP in hours of labor per worker: 125.2

More than 1.9 million people are employed in Louisiana, our No. 2 state. With statewide hourly labor costs at $30.64 per person, the $7.4 billion in approved PPP funding for Louisiana businesses could pay for 125.2 hours of work for each employee.

Louisiana recently entered the first phase of a reopening process after the governor lifted a statewide stay-at-home order. Local businesses such as nail and hair salons, gyms, casinos and churches can operate at 25% capacity, while restaurants also may resume serving dine-in customers at 25% capacity. Louisiana businesses and residents are expected to remain in Phase One through June 5.

Image Credit: DenisTangneyJr.

1. South Dakota

States getting the most help from PPP loans

Approved PPP amount: $1,676,714,573

Hourly cost of compensation for labor: 29.76

Total workers: 425,140

Value of approved PPP in hours of labor: 56,345,205

Value of approved PPP in hours of labor per worker: 132.5

Our first-place state has 425,140 workers, and the hourly cost of labor in South Dakota is $29.76. As of May 8, South Dakota businesses have been approved for $1.7 billion in PPP loans, which could cover 132.5 hours of labor for each employee in the state.

South Dakota lawmakers have pushed for PPP funding to help farmers and ranchers, as well as tribally owned casinos and gaming operations in the state. In the first round of funding, 70% of South Dakota businesses applied for PPP loans, though just 23% were approved in the first and second rounds, through May 8.

This article originally appeared on LendingTree.com and was syndicated by MediaFeed.org.

Image Credit: elljay / Pixabay.com.

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