Data: U.S. Small Business Administration; Chart: Naema Ahmed/Axios

The Paycheck Protection Program (PPP) "appears to have missed the mark," S&P Global chief economist Beth Ann Bovino writes in a research report to be released today.

What it means: The PPP's first round largely skipped over states and industries that were the most in need, while the second round still has 39% of allocated cash remaining, even as many businesses are at risk of permanent closure.

  • And data shows that only about one in three small businesses reported applying for PPP funds and less than one-third of those received the loans.

Why it matters: Even as governors allow businesses to reopen, skittish customers and social-distancing requirements mean many will be dealing with reduced demand for some time and few have the resources to do so on their own.

  • A recent working paper from the National Bureau of Economic Research (NBER) finds that many small businesses are "financially fragile" and have only enough cash on hand to last for two weeks.

By the numbers: Bovino's analysis of the SBA's data finds the "bulk of the program seems to be benefiting states with fewer jobless claims."

  • Eight of the 10 states that received the smallest loan amounts had the highest unemployment rates.
  • Seven of 10 states that received the largest loan amounts had the lowest unemployment rates.

A similar theme is present in terms of industries — those hit hardest by the pandemic, in terms of job losses, received the least funding from the first program's total approved loans.

  • Service industries, which accounted for an unprecedented 12.9 million jobs lost in April (62.9% of the 20.5 million), received just 36% of loans.
  • Leisure and hospitality and retail lost 9.8 million jobs, or 48% of the total lost in April, but received only 19%.
  • In contrast, goods-producing industries lost 2.3 million jobs (11% of the April total) but got 27%.
  • Information services and financial industries lost 27% of jobs but got 36%.

Of note: These have somewhat improved in PPP's second round but remain tilted toward states and industries less affected by the pandemic.

Go deeper: The moving goalposts for PPP loans

Go deeper

Small businesses face post-lockdown cash crunch

A seamstress works at a sewing machine in a tailoring shop in Palm Springs, Calif. Photo: Robert Alexander/Getty Images.

U.S. macroeconomic data is broadly improving but many small businesses are facing a perilous recovery as they attempt to stay afloat after coronavirus-driven lockdowns throughout the country. That's true even for the many that received government assistance.

By the numbers: A recent poll of 7,317 small business owners by Alignable finds that 43% of firms that received money through the Paycheck Protection Program (PPP) say they could be out of cash in a month or less.

2 hours ago - Health

Cash can't fix the economy's problems until the coronavirus is curbed

Illustration: Sarah Grillo/Axios

There's plenty of money. It's just not moving to where it's needed.

Driving the news: Thursday's jobs report showed 4.8 million jobs created in June, but those were overwhelmingly people beginning to return to places where they had been temporarily laid off. The number of "permanent job losers" went up, not down, rising 25% in just one month to 2.8 million from 2.2 million.

Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 1 p.m. ET: 10,742,416 — Total deaths: 517,162 — Total recoveries — 5,515,076Map.
  2. U.S.: Total confirmed cases as of 1 p.m. ET: 2,699,658 — Total deaths: 128,184 — Total recoveries: 729,994 — Total tested: 32,827,359Map.
  3. States: Florida reports more than 10,000 new coronavirus cases — 5 states saw 27% spike in heart-related deaths in first 3 months of coronavirus pandemic.
  4. Federal government: Coronavirus testing czar: "We are not flattening the curve right now"
  5. Sports: 9 more NBA players test positive for coronavirus.