Apr 21, 2020 - Economy & Business

How many big companies got PPP loans

Dion Rabouin, author of Markets
Data: U.S. Small Business Administration; Table: Axios Visuals

As Congress pushes closer to extending a second round of relief payments to small businesses after its $350 billion Paycheck Protection Program ran out of funds in two weeks, banks are facing severe backlash over their handling of the program.

Driving the news: A class-action lawsuit on behalf of small business owners alleges JPMorgan, Bank of America, Wells Fargo and US Bank prioritized larger loan applications over small ones in order to collect larger processing fees.

Yes, but: While much of the program's total amount went to companies who were able to show their operations needed $1 million or more in assistance, suggesting they were hardly small businesses, nearly three-quarters of the total loans given out were for under $150,000.

  • Almost nine out of 10 PPP loans (87.5%) were for less than $350,000, reports from the Small Business Administration show, a number that grew steadily in the final days of the program.

What's next: Banks are warning their customers that even if Congress provides an additional $300 billion by this week, they may not be able to provide loans to small businesses. They say the program needs closer to $1 trillion to meet demand, according to Politico.

  • A survey from the National Federation of Independent Business found that only about 20% of small businesses that applied for a PPP loan had money deposited in their account as of April 17.

Go deeper: Shake Shack returning entire $10 million PPP loan

Go deeper

Apr 27, 2020 - Health

The hospitals that have disclosed bailout funds so far

Mayo Clinic has received $220 million in CARES Act funding as of May 15. Photo: Cliff Hawkins/Getty Images

More than $8 billion in federal bailout funds have been disclosed by hospitals and health systems as of June 3, according to an Axios review of financial documents.

Why it matters: Hospitals do not have to repay these taxpayer funds, which are supposed to offset the lost revenue and higher costs associated with handling the coronavirus outbreak. HHS has released two datasets on the bailout money — one on the general allocation and another on the money that went to coronavirus hotspots — but the general allocation one is incomplete.

Jun 3, 2020 - Health

Private equity benefits from HHS loans meant to help health care providers during pandemic

Illustration: Lazaro Gamio/Axios

Private equity companies have borrowed at least $1.5 billion from the federal government through programs intended to provide emergency funding to struggling health care companies during the coronavirus pandemic, Bloomberg reports.

Between the lines: Some of the hospitals, clinics and treatment centers benefiting from the Medicare loans — which could plausibly end up being forgiven — are owned by the richest investment firms.

The risk asset rally continues as stock market rebounds

Illustration: Sarah Grillo/Axios

Risk assets have jumped over the past week and continued their rally on Wednesday, with the S&P 500 gaining for a fourth straight day and posting its highest close since March 4, while the Nasdaq ended the day just 1.4% below its all-time high.

What it means: If it hadn't been evident before, Wednesday's market action made clear that the bulls are back in charge.