According to the Small Business Administration (SBA), 94,873 businesses in Washington have received $12.094 billion in paycheck protection loans (through June 12). The SBA estimates that there is $129.754 billion of funding left for the program. Applications must be made before the end of June, so it seems unlikely that the funding will be exhausted.

Meanwhile, the Board of Governors of the Federal Reserve System has released its semiannual Monetary Policy Report. The report includes a section on small business and the recession: “The pandemic poses acute risks to the survival of many small businesses. Their widespread failure would adversely alter the economic landscape of local communities and potentially slow the economic recovery and future labor productivity growth.”

The report notes that small businesses are “particularly vulnerable” in this recession:

First, small businesses are prevalent in sectors that have seen especially large declines in revenue due to social distancing; small businesses make up about 60 percent of employment in the “leisure and hospitality” sector and about 85 percent of employment in the “other services” sector (which includes assorted neighborhood fixtures like churches and beauty salons). Second, small firms tend to be more financially constrained than larger firms.

It suggests that the paycheck protection program (PPP) may not be enough: “About three-fourths of small businesses with employees have applied for PPP assistance, suggesting the program is extremely valuable and timely, and a large share of these applications have been approved; however, some industries may face an ongoing need after the program expires.”