by Mike ‘Mish’ Shedlock
The Street
Recipients of PPP loans have filed for bankruptcy after the money ran out.
At least a Half Billion in PPP Loans Won’t Be Repaid
Hundreds of companies employing 23,400 people went Bankrupt after PPP Funds Ran Out.
The total number of companies that failed despite getting PPP loans is likely far higher. The Journal only analyzed the big borrowers from the program, which accounted for about half of the overall loans though only about 13.5% of the total participants. And many small businesses simply liquidate when they run out of cash rather than file for bankruptcy.
The SBA has only released data on the largest borrowers, which the Journal linked to bankruptcy filings.
About $525 billion in loans were distributed to over 5 million companies between April 3 and Aug. 8.