PPP Loans to Pennsylvania BusinessesThis research brief examines the impact of the PPP on Pennsylvania businesses by considering the number and type of firms affected, the potential employment impact and possible tax implications. Tags: businesses, employment, ppp, tax |
ppp Loans to Pennsylvania BusinessesThis research brief examines the impact of the ppp on Pennsylvania businesses by considering the number and type of firms affected, the potential employment impact and possible tax implications. 12/08/2020 |
RB_2020_12_PPP_Loans_to_PA_Businesses.pdfOn March 27, 2020, the Paycheck Protection Program (PPP) was enacted as part of the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act. 1 The program made forgivable years and (3) conform to Small Business Administration (SBA) size standards for their industry. 2 The primary goal of the PPP was to provide economic relief to small businesses and non- profits that had been adversely impacted by COVID-19 and Hits: 17 |
RB_08_2023_County_Income_Patterns.pdfpayments (EIPs, $23 billion), emergency SNAP benefits ($4 billion), expanded child care tax credits (CTC, $3 billion), Paycheck Protection Program (PPP) loans to certain businesses ($4 billion) and non-profits ($1 billion), and distributions from the Provider Relief Fund ($1 billion Federal Pandemic Response Programs on Personal Income” by state for 2021, which included a total of $3.8 billion for PPP loans to Pennsylvania sole proprietors and partnerships. Dollar figures for PPP loans are not available at the county level, so Hits: 15 |
Five_Year_Outlook_2020.pdfquarter. Personal income recorded strong growth due to special unemployment compensation programs, economic impact payments and Paycheck Protection Program (PPP) loans. 2 For 2020 Q4, the latest data reveal year-over-year wage growth after two quarters of contraction continues to improve, partly due to a contraction of the labor force. 2 The National Income and Product Accounts include PPP loans with Proprietor’s Income or Personal Dividend Income, which are part of state Personal Income. Those amounts include forgiven Hits: 11 |
Revenue_Estimate_2021_05.pdfthe second half of CY 2021. ▪ Commonwealth firms and non-profits received $20.7 billion of forgivable Paycheck Protection Program (PPP) loans in CY 2020: $11.3 billion to pass-through businesses (sole proprietors, partnerships, S corporations), $7.6 billion to 1.4 provides quarterly estimates for the annual amounts in Table 1.3 related to payments to indi- viduals and PPP. The table shows that the quarters with the largest amount of funds occurred when the first EIP (2020 Q2) and Hits: 9 |
RB_2022_08 County Income Patterns.pdfstate amounts above “normal” payments), economic impact payments (EIPs, $11 billion) and lost wage assistance ($2 billion), Paycheck Protection Program (PPP) loans to certain businesses ($5 billion) and non-profits ($2 billion) and distributions from the Provider Relief Fund ($3 billion of Selected Federal Pandemic Response Programs on Personal Income” by state, which included a total of $5.2 billion for PPP loans to Pennsylvania sole proprietors and partnerships. Dollar figures for PPP loans are not available at the county level, so Hits: 9 |
June_Revenue_Estimate_2021.pdfthe second half of CY 2021. ▪ Commonwealth firms and non-profits received $20.7 billion of forgivable Paycheck Protection Program (PPP) loans in CY 2020: $11.3 billion to pass-through businesses (sole proprietors, partnerships, S corporations), $7.6 billion to 1.4 provides quarterly estimates for the annual amounts in Table 1.3 related to payments to indi- viduals and PPP. The table shows that the quarters with the largest amount of funds occurred when the first EIP (2020 Q2) and Hits: 8 |
Revenue_Estimate_2021_05_Presentation.pdf5 Expanded Child Tax Credit 0.0 3.5 3.5 Total Individual Programs 38.4 39.6 78.0 PPP Forgivable Loans $20.7 $10.1 $30.8 Direct State-Local Support 8.7 31.0 39.7 Other Support 4 0.4 $0.3 EIPs 10.9 0.1 -- 18.2 3.1 -- -- Expanded CTC -- -- -- -- -- 1.7 1.7 PPP Forgiven Loans 20.4 0.3 -- 8.0 2.1 -- -- Total 42.8 12.6 3.6 32.4 10 Hits: 5 |
Five_Year_Outlook_2021.pdfrecorded historic growth in 2021 Q1 due to federal unemployment compensa- tion programs, economic impact payments and Paycheck Protection Program (PPP) transfers. Growth in 2021 Q2 contracts due to the decline of federal stimulus compared to 2020 Q2. ▪ Wages and Salaries if economic conditions necessitate it. Economic Outlook | Page 12 ▪ Commonwealth firms and non-profits received $20.7 billion of forgivable PPP loans in CY 2020 and another $10.0 billion in CY 2021. ▪ Direct state support reflects funds allocated directly to Hits: 4 |
Revenue_and_Economic_Update_Presentation_2020_10.pdfJul Aug Sep Oct Solid collections Pre-COVID 19 FPUC ends $11 billion economic impact payments start FPUC, PUA and PPP non-essential business closures most PA businesses able to reopen (limited) PUA and extended benefits run thru Dec Year-over- growth maintain without supports? $936 million +4.3% Note: FPUC is Federal Pandemic Unemployment Compensation. PUA is Pandemic Unemployment Assistance. PPP is Paycheck Protection Program. LWA is Lost Wage Assistance. Growth rates control for revenue shifts. Collections partially based on sales Hits: 3 |
Revenue-Estimate-2020-05.pdf0.5 Business Provisions Business Tax Cuts 4.6 Total 78.0 Delay Employer Payroll Taxes 10.8 PPP Forgivable Loans 20.8 Note: Figures in dollar billions. Source: See text for a description of methodology and sources. Table 1.3 are shifted. This provision enhances immediate cash flow. The small business loans from the Paycheck Protection Program (PPP) are based on data pub- lished by the Small Business Administration. The loans will be forgiven if used for eligible expenses such Hits: 3 |
RB_2021_01_Economic_Impact_of_Federal_Stimulus.pdfCARES) Act which included the first round of EIPs ($1,200 per adult), the establishment of the Paycheck Protection Program (PPP), funding for vaccines and testing, support to hospitals, enhanced UC payments (extra $600 per week, compensation for self-employed and For those provisions, the IFO estimates the following impacts: $32.2 billion to small businesses through the Paycheck Protection Program (PPP); $18.4 billion of general aid to state and local governments; $2.6 billion to transit agencies; and $2.6 Hits: 3 |
PA_Chamber_June_17_2021.pdf5 Expanded Child Tax Credit 0.0 3.5 3.5 Total Individual Programs 38.4 40.5 78.9 PPP Forgivable Loans $20.7 $10.0 $30.7 Direct State-Local Support 8.7 30.8 39.5 Other Support 4 0.4 $0.3 EIPs 10.9 0.1 -- 18.2 3.1 -- -- Expanded CTC -- -- -- -- -- 1.7 1.7 PPP Forgiven Loans 20.4 0.3 -- 8.0 2.1 -- -- Total 42.8 12.6 3.6 32.4 10 Hits: 3 |
PA_Assoc_of_Community_Bankers_Presentation_2020_12.pdf0 billion LWA $1.7 billion Other $1.4 billion State UC $5.2 billion Impact Payments $11.0 billion PPP (excluded) $20.7 billion Note: Lost labor income includes wages ($20.8b), self-employed income ($3.2b) and tips ($1 May Jun Jul Aug Sep Oct Nov Solid collections Pre-COVID 19 FPUC ends economic impact payments FPUC, PUA and PPP non-essential business closures most PA businesses able to reopen (limited) Year-over-Year Growth $848 m Note: FPUC is Hits: 3 |
Official-Revenue-Estimate-2020-06.pdf0.5 Business Provisions Business Tax Cuts 4.6 Total 78.7 Delay Employer Payroll Taxes 10.8 PPP Forgivable Loans 20.5 Note: Figures in dollar billions. Source: See text for a description of methodology and sources. Table 1.3 are shifted. This provision enhances immediate cash flow. The small business loans from the Paycheck Protection Program (PPP) are based on data pub- lished by the Small Business Administration. The loans will be forgiven if used for eligible expenses such Hits: 3 |
MSC_March_31_2021.pdfdemand Income – Withholding 8,131 0.3% Income – Other 3,100 ‘ 8.1% final quarterly payments strong, includes $100m from PPP All Tobacco 891 3.7% Inheritance 964 3.3% Realty Transfer 465 14.9% housing market very strong All Other 0.0 3.6 spread through year Total 43.6 13.9 25.7 Other Federal Programs Paycheck Protection Program (PPP) $20.7 $11.2 $0.3 Direct State Support 6.1 4.6 18.2 Direct Local Support 2.6 Hits: 3 |
EPLC-2-19-21.pdf11.0 6.3 6.6 million PA recipients Total 43.6 14.2 Other Federal Programs Paycheck Protect Prog (PPP) $20.7 $11.2 Direct State Support 5.9 4.6 CY 2021 does not include general aid Direct Local demand Income – Withholding 6,032 -1.5% Income – Other 2,453 ‘ 1.8% final quarterly payments strong, includes $100m from PPP All Tobacco 693 -0.3% Inheritance 707 -1.5% Realty Transfer 371 12.4% housing market very strong All Other Hits: 3 |
Revenue-Estimate-2020-05-Presentation.pdfEducational Institutions 0.5 Business Provisions Business Tax Cuts 4.6 Delay Employer Payroll Taxes 10.8 Total $78.0 PPP Forgivable Loans 20.8 Note: Billions of dollars. Federal UC Payments include FPUC, PUA and 13 week extension. FPUC – Federal economy in a temporary bubble? Extra $600/week ends in mid- to late-July | windfall for some workers PPP loans/grants buys limited time for businesses One-time purchases to enable telecommuting Lack of seasonal sales still Hits: 2 |
PICA_Presentation_2020_11.pdfApr May Jun Jul Aug Sep Oct Solid collections Pre-COVID 19 FPUC ends economic impact payments FPUC, PUA and PPP non-essential business closures most PA businesses able to reopen (limited) Year-over-Year Growth State $940 m Note: FPUC is Federal Pandemic Unemployment Compensation. PUA is Pandemic Unemployment Assistance. PPP is Paycheck Protection Program. LWA is Lost Wage Assistance. Growth rates control for revenue shifts. Collections partially based on sales Hits: 2 |
PASBO_Presentation_March_16_2023.pdf2 2023.3 Unemployment Comp $31.5 $16.9 $0.1 -- -- -- Economic Impact Payments 11.2 22.1 0.8 -- -- -- PPP Loans 20.7 10.0 -- -- -- -- CTC/ERC/Dependent Care -- 4.4 3.8 -- -- -- SNAP and P-EBT 1.3 3 20 Feb Apr Jun Aug Oct Dec-21 Feb Apr Jun Aug Oct Dec-22 Feb Econ Imp Pay = $21b PPP2 = $10b durable goods +23% all energy +46% supply chains "base year" effects money creation grocery +17% annual growth 8.8% Hits: 2 |
PACBI_Presentation_March_13_2023.pdf2 2023.3 Unemployment Comp $31.5 $16.9 $0.1 -- -- -- Economic Impact Payments 11.2 22.1 0.8 -- -- -- PPP Loans 20.7 10.0 -- -- -- -- CTC/ERC/Dependent Care -- 4.4 3.8 -- -- -- SNAP and P-EBT 1.3 3 20 Feb Apr Jun Aug Oct Dec-21 Feb Apr Jun Aug Oct Dec-22 Feb EIP 2+3 = $21b PPP2 = $10b durable goods +23% all energy +46% supply chains "base year" effects money creation grocery +17% projection Philly CPI-U Hits: 2 |
Official-Revenue-Estimate-2020-06-Presentation.pdfEducational Institutions 0.5 Business Provisions Business Tax Cuts 4.6 Delay Employer Payroll Taxes 10.8 Total $78.7 PPP Forgivable Loans 20.5 Note: Billions of dollars. Federal UC Payments include FPUC, PUA and 13 week extension. FPUC – Federal economy in a temporary bubble? Extra $600/week ends in mid- to late-July | windfall for some workers PPP loans/grants buys limited time for businesses One-time purchases to enable telecommuting Lack of seasonal sales still Hits: 2 |
MRU_2021_03.pdfoffset by lower annual payments to the extent small business owners made quarterly payments related to forgiven Paycheck Protection Program (PPP) loans, which are now non-taxable. The due date for PIT annual payments has been delayed until May 17. March monthly strength, tax year 2020 final payments are expected to be suppressed due to the revised tax treatment of forgiven PPP loans. FYTD CNIT collections are $2.82 billion, or $62.0 million (2.3 percent) over estimate. Sales and use Hits: 2 |
Five_Year_Outlook_2020_Presentation_Final.pdfhighly unusual March +3% | June -31% | September -5% | December +35% Short-term factors Likely some payments made on PPP loans Payroll tax shift to 2021 and 2022 Possible shifting in anticipation of tax rate increase (e.g 20-21 Notes Special funds transfer $431 Rainy day fund $100 Revenue shifts $1,938 delayed due dates Payment on PPP loans $100 affects personal income tax JUA transfer $200 court challenge CARES Act $1,330 used for DHS, PSP, DCJ Hits: 2 |
Economic_and_Revenue_Update_2021.pdf0.6 Economic Impact Payments 11.0 6.3 Total 43.6 14.2 Other Federal Programs Paycheck Protect Prog (PPP) $20.7 $11.2 Direct State Support 6.1 4.6 Direct Local Support 2.5 0.8 Other Support 958 -0.6 Quarterly 1,661 0.7 final quarterly payment strong Annuals 1,221 -2.0 includes $100m from PPP Realty Transfer 413 12.7 housing market very strong Inheritance 807 -1.6 Gaming 145 22.5 sports wagering and Hits: 2 |
Economic_and_Revenue_Update_2020_10.pdfImpact Payments 11.0 6.6 million PA recipients Total 42.3 Other Federal Provisions Paycheck Protection Program (PPP) $20.7 disbursed April to June SNAP Benefits 1.0 Stimulus and UC Payments More Than Offset Lost Labor Income Table 1 estimate released on June 22, 2020. 7 The estimate assumes that forgivable loans under the Paycheck Protection Program (PPP) will be treated as non- taxable. If forgivable loans are effectively taxed, that treatment would have significant revenue implications for corpo- rate Hits: 2 |
2022_Mid_Year_Update.pdf5 0.5 Econ. Imp. Payment 10.9 0.1 -- 5.7 15.3 -- -- Expanded CTC -- -- -- -- -- 1.7 1.7 PPP Forgiven Loans 20.4 0.3 -- 8.0 2.0 -- -- Total 42.8 12.6 3.6 19.8 23 liability. Expanded UC subject to federal but not state income tax. All EIPs are non-taxable. Note: Billions of dollars. PPP includes both pass-through entities and C corporations. Source: US Department of Labor, US Treasury Department, Small Business Administration and Hits: 2 |
Revenue_Estimate_2022_06.pdfCredits -- 3.4 0.1 3.5 Rental and Homeowner Assistance -- 2.0 0.0 2.0 Paycheck Protection Program (PPP) 20.7 10.0 0.0 30.7 Total 64.2 55.0 1.9 121.2 Other Federal Programs Hits: 1 |
Revenue_Estimate_2022_05.pdfCredits -- 3.4 0.1 3.5 Rental and Homeowner Assistance -- 2.0 0.0 2.0 Paycheck Protection Program (PPP) 20.7 10.0 0.0 30.7 Total 64.2 55.0 1.9 121.2 Other Federal Programs Hits: 1 |
PMTA_Presentation_April_2023.pdfSep Nov Jan Mar May Jul-22 Sep Nov Jan Mar Note: Data seasonally adjusted. Pandemic programs include PUA, FPUC, PPP, EIPs and refundable CTC. Source: U.S. Bureau of Labor Statistics. Federal Pandemic Programs 2019 63.2 2022 61.7 Hits: 1 |
PACB_Presentation_2021_8.pdfchange and compares to a no-pandemic scenario. Payroll jobs figure for 2021.3 reflects July only. Federal stimulus includes PPP loans, expanded SNAP, advance child tax credit payments, expanded UC benefits and economic impact payments. All rates or changes are Hits: 1 |
MSC_March_31_2022.pdfAwards -- 3.4 0.1 3.5 Rental and Homeowner Assistance -- 1.8 0.0 1.8 Paycheck Protection Program (PPP) 20.7 10.0 0.0 30.7 Total 64.2 54.9 1.3 120.4 Other Federal Programs Hits: 1 |
MRU_2021_02.pdfis expected to be partially offset in April to the extent small business owners made quarterly payments related to forgiven PPP loans, which are now non-taxable. Cigarette tax collections exceeded estimate by $15.7 million (21.2 percent) for the Hits: 1 |
Monthly_Economic_Update_May_2020.pdffrom 16% a month prior. More than 81% of surveyed firms reported seeking a Small Business Administration Paycheck Protection Program (PPP) loan. By May 10, nearly 90% of firms reported having received a loan—up from only 6% for the week Hits: 1 |
Monthly_Economic_Update_January_2022.pdfwere injected into the state economy by the federal Consolidated Appropriations Act and American Rescue Plan. A second round of PPP loans injected another $10.0 billion, expanded unemployment compensation $16.1 billion and advance child tax credits $3.4 billion Hits: 1 |
Labor_Market_Update_June_23_2021.pdfresidents or businesses received $32.4 billion in federal unemployment compensation (UC), economic impact payments or forgivable Paycheck Protection Program (PPP) loans. For 2021 Q2, the IFO estimates an additional $10.8 billion has been received. Based on the latest data Hits: 1 |
Labor_Market_Update_June_2021.pdfresidents or businesses received $32.4 billion in federal unemployment compensation (UC), economic impact payments or forgivable Paycheck Protection Program (PPP) loans. For 2021 Q2, the IFO estimates an additional $10.3 billion will be received. (For additional detail, see the Hits: 1 |
IFO_Hearing_Materials_March_2023.pdf0.5 0.0 0.5 Emergency Rental Assistance -- 0.6 0.6 0.4 1.6 Paycheck Protection Program (PPP) 20.7 10.0 0.0 0.0 30.7 Total 64.8 57.3 8.0 1.0 131 Hits: 1 |
IFO_Hearing_Materials_Feb_22_2022.pdfAwards -- 3.4 0.1 3.5 Rental and Homeowner Assistance -- 1.8 0.0 1.8 Paycheck Protection Program (PPP) 20.7 10.0 0.0 30.7 Total 64.2 54.9 1.3 120.4 Other Federal Programs Hits: 1 |
EPLC_3_4_2022_update.pdfAwards -- 3.4 0.1 3.5 Rental and Homeowner Assistance -- 1.8 0.0 1.8 Paycheck Protection Program (PPP) 20.7 10.0 0.0 30.7 Total 64.2 54.9 1.3 120.4 Other Federal Programs Hits: 1 |
Economic_Forecast_Business_Leadership_Summit_Feb_2024.pdfStimulus to PA Residents and Business ($ billions) SNAP, Rent Assist, Expand CTC, Student Loan Freeze Federal UC Econ Imp Payments PPP $44 $33 2019 5.1% 2020 0.5% 2021 16.2% 2022 7.0% 2023 1.7% 2019 4.8% Hits: 1 |
CompetePA_March_11_2021.pdf0.0 3.6 spread through year Total 43.6 13.9 25.4 Other Federal Programs Paycheck Protection Program (PPP) $20.7 $11.2 $0.3 Direct State Support 6.1 4.6 18.1 $7.3b General Aid Direct Hits: 1 |
Budget_Roundtable_Response_Letter_02_2024.pdfwho are taking on new debt with those that paid down debt using federal stimulus (e.g., economic impact payments, PPP loans, enhanced unemployment compensation) during the federal health emergency. Representative Gleim requested data on loans or withdrawals taken from IRAs Hits: 1 |
2023_Mid_Year_Update.pdfMotor Sales and Use Tax: Growth Turns Negative January 31, 2023 17 CY 2021 EIP 2+3 = $22.1 billion PPP #2 = $10.0 billion Advance CTC = $3.4 billion Jan to March 2022 one-time refundable credits = $1.8 billion Hits: 1 |