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Child Care, Essential to Economic Recovery, Received Just $2.3 Billion in PPP Funds ​During 2020

The Brief

Update: In a previous version of this post, we calculated all recipients of the program through July 6, 2020. The PPP was subsequently extended through August 8, 2020. Because of the extension, the previous post did not include all loans made to child care providers for the duration of the original program.

In 2020, the Paycheck Protection Program provided almost 43,000 child care providers across the country with at least $2.3 billion in funding, and allowed almost 460,000 child care workers to keep their jobs, according to our analysis of data released by the Small Business Administration. This funding represents less than 1% (0.44%) of the total $525 billion in lending through the program, a small amount for such an essential industry.

In all, less than 7% of the over 670,000 child care businesses received a PPP loan. While we do not have data on the number of child care programs that applied for the PPP, it is clear that only a very small number of the potential applicants received much needed support. The loan program did, however, help to retain about 30% of the child care workforce, helping curb the significant number of child care staff who lost their job during the pandemic. Comparatively, across all 50 states, the SBA estimates that between 72% to 96% of small business payroll was covered by the PPP.

The vast majority of loans to child care providers were under $150,000, with only 10% of loans above this threshold. Nationwide, for loans under $150,000, the average amount provided through the PPP to child care providers was almost $37,000.

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PPP 2020 Loan Amounts

StateLoans under 150KMin Amt. for loans over 150KMax. Amt. for loans over 150KTotal Amount (with min)Total Amount (with max)
Alabama $ 19,499,635 $ 5,300,000 $ 13,250,000 $ 24,799,635 $ 32,749,635
Alaska $ 2,654,412 $ 2,450,000 $ 5,750,000 $ 5,104,412 $ 8,404,412
Arizona $ 19,949,329 $ 17,750,000 $ 40,000,000 $ 37,699,329 $ 59,949,329
Arkansas $ 13,944,778 $ 10,650,000 $ 26,050,000 $ 24,594,778 $ 39,994,778
California $ 108,043,717 $ 103,350,000 $ 252,100,000 $ 211,393,717 $ 360,143,717
Colorado $ 18,984,171 $ 21,500,000 $ 51,300,000 $ 40,484,171 $ 70,284,171
Connecticut $ 22,966,134 $ 14,400,000 $ 36,500,000 $ 37,366,134 $ 59,466,134
Delaware $ 8,275,708 $ 2,000,000 $ 4,850,000 $ 10,275,708 $ 13,125,708
District of Columbia $ 5,058,200 $ 7,700,000 $ 18,550,000 $ 12,758,200 $ 23,608,200
Florida $ 106,596,539 $ 41,850,000 $ 103,300,000 $ 148,446,539 $ 209,896,539
Georgia $ 54,547,232 $ 26,800,000 $ 64,000,000 $ 81,347,232 $ 118,547,232
Hawaii $ 2,236,445 $ 6,500,000 $ 15,750,000 $ 8,736,445 $ 17,986,445
Idaho $ 8,034,187 $ 1,400,000 $ 3,450,000 $ 9,434,187 $ 11,484,187
Illinois $ 64,719,911 $ 40,500,000 $ 97,200,000 $ 105,219,911 $ 161,919,911
Indiana $ 16,854,280 $ 10,450,000 $ 25,850,000 $ 27,304,280 $ 42,704,280
Iowa $ 19,806,889 $ 7,000,000 $ 17,100,000 $ 26,806,889 $ 36,906,889
Kansas $ 12,094,002 $ 5,200,000 $ 12,500,000 $ 17,294,002 $ 24,594,002
Kentucky $ 15,195,463 $ 6,650,000 $ 16,800,000 $ 21,845,463 $ 31,995,463
Louisiana $ 20,561,991 $ 4,350,000 $ 10,700,000 $ 24,911,991 $ 31,261,991
Maine $ 8,419,639 $ 5,000,000 $ 11,700,000 $ 13,419,639 $ 20,119,639
Maryland $ 28,874,933 $ 31,550,000 $ 75,250,000 $ 60,424,933 $ 104,124,933
Massachusetts $ 42,194,763 $ 48,150,000 $ 119,100,000 $ 90,344,763 $ 161,294,763
Michigan $ 28,567,485 $ 16,500,000 $ 39,300,000 $ 45,067,485 $ 67,867,485
Minnesota $ 33,535,905 $ 22,450,000 $ 55,200,000 $ 55,985,905 $ 88,735,905
Mississippi $ 15,375,172 $ 1,500,000 $ 3,500,000 $ 16,875,172 $ 18,875,172
Missouri $ 31,875,410 $ 12,750,000 $ 31,800,000 $ 44,625,410 $ 63,675,410
Montana $ 5,711,796 $ 450,000 $ 1,050,000 $ 6,161,796 $ 6,761,796
Nebraska $ 16,103,031 $ 7,050,000 $ 17,400,000 $ 23,153,031 $ 33,503,031
Nevada $ 6,544,855 $ 3,400,000 $ 8,300,000 $ 9,944,855 $ 14,844,855
New Hampshire $ 8,944,649 $ 5,500,000 $ 13,750,000 $ 14,444,649 $ 22,694,649
New Jersey $ 56,840,873 $ 42,500,000 $ 103,900,000 $ 99,340,873 $ 160,740,873
New Mexico $ 6,825,542 $ 5,200,000 $ 12,900,000 $ 12,025,542 $ 19,725,542
New York $ 77,815,687 $ 106,150,000 $ 258,600,000 $ 183,965,687 $ 336,415,687
North Carolina $ 46,390,034 $ 26,300,000 $ 63,450,000 $ 72,690,034 $ 109,840,034
North Dakota $ 7,005,234 $ 2,550,000 $ 6,500,000 $ 9,555,234 $ 13,505,234
Ohio $ 53,692,478 $ 30,100,000 $ 71,750,000 $ 83,792,478 $ 125,442,478
Oklahoma $ 18,124,538 $ 6,000,000 $ 15,100,000 $ 24,124,538 $ 33,224,538
Oregon $ 13,670,112 $ 6,900,000 $ 16,500,000 $ 20,570,112 $ 30,170,112
Pennsylvania $ 69,261,699 $ 42,500,000 $ 103,000,000 $ 111,761,699 $ 172,261,699
Rhode Island $ 7,479,633 $ 3,000,000 $ 7,550,000 $ 10,479,633 $ 15,029,633
South Carolina $ 18,682,880 $ 6,900,000 $ 16,500,000 $ 25,582,880 $ 35,182,880
South Dakota $ 5,532,939 $ 3,700,000 $ 8,850,000 $ 9,232,939 $ 14,382,939
Tennessee $ 22,279,281 $ 9,350,000 $ 23,800,000 $ 31,629,281 $ 46,079,281
Texas $ 132,680,408 $ 61,900,000 $ 147,500,000 $ 194,580,408 $ 280,180,408
Utah $ 8,806,432 $ 2,650,000 $ 6,550,000 $ 11,456,432 $ 15,356,432
Vermont $ 4,710,944 $ 2,600,000 $ 6,250,000 $ 7,310,944 $ 10,960,944
Virginia $ 35,623,276 $ 21,650,000 $ 53,850,000 $ 57,273,276 $ 89,473,276
Washington $ 28,777,994 $ 31,550,000 $ 76,350,000 $ 60,327,994 $ 105,127,994
West Virginia $ 5,859,660 $ 2,050,000 $ 5,150,000 $ 7,909,660 $ 11,009,660
Wisconsin $ 34,348,964 $ 17,200,000 $ 42,850,000 $ 51,548,964 $ 77,198,964
Wyoming $ 4,064,989 $ 2,200,000 $ 6,050,000 $ 6,264,989 $ 10,114,989
Totals $ 1,424,644,259 $ 923,050,000 $ 2,244,300,000 $ 2,347,694,259 $ 3,668,944,259
Averages$36,842

Number of PPP Loans

  Number of Loans Jobs Retained
StateUnder 150KOver 150KTotal w/ Nonprofit StatusTotal LoansLoans under 150KLoans over 150KTotal Jobs
Alabama51419725334,6921,3686,060
Alaska6781475501471972
Arizona41650264663,6852,5436,228
Arkansas35838593963,3302,4315,761
California3,4473763393,8236,42016,64423,064
Colorado442109935512,6693,3846,053
Connecticut59965836644,2482,5016,749
Delaware1401291521,3915671,958
District of Columbia9739291367001,2711,971
Florida2,4952101502,70520,9718,44429,415
Georgia1,222150821,37211,7555,65817,413
Hawaii711324843151,1501,465
Idaho2828132901,7184352,153
Illinois1,9322001712,13212,4438,27120,714
Indiana5298725373,9562,2506,206
Iowa753341407875,3221,8937,215
Kansas59032706223,0361,5824,618
Kentucky37035324054,2691,8186,087
Louisiana54025435655,2301,2106,440
Maine33025283551,8821,0252,907
Maryland774122888965,0476,43311,480
Massachusetts1,1491902041,3396,5288,24514,773
Michigan77688778646,6854,02310,708
Minnesota1,356113971,4696,9525,38512,337
Mississippi53010685404,4413764,817
Missouri94662921,0087,6113,23110,842
Montana2413272441,509931,602
Nebraska60432476363,7111,3435,054
Nevada1422081621,2486321,880
New Hampshire18930432191,3541,1542,508
New Jersey1,1241851411,3099,8088,51818,326
New Mexico13321371541,3871,2682,655
New York2,4883672632,85513,09818,10231,200
North Carolina1,0821441371,2268,9654,62613,591
North Dakota25013342631,6878512,538
Ohio1,2361331371,36912,2386,42118,659
Oklahoma66832397005,6331,5967,229
Oregon42135514562,2131,4433,656
Pennsylvania1,4661981891,66412,9487,86020,808
Rhode Island17216121881,2014691,670
South Carolina46335474984,5061,7466,252
South Dakota33515343501,6191,0642,683
Tennessee63038936684,6632,1766,839
Texas2,9803582433,33830,56713,92744,494
Utah27615112912,2027912,993
Vermont11716481337994751,274
Virginia8701121359825,9363,7189,654
Washington8071331169404,6615,1039,764
West Virginia15011201611,4925892,081
Wisconsin929851091,0147,5843,70911,293
Wyoming1718321791,1134731,586
Totals 38,669 4,096 4,22542,765 277,939 180,756 458,695
Averages90%10%10%100%5,450

From our analysis, states receiving the most PPP funds for child care were, not surprisingly, California, Texas, and New York, where in each state, programs received amounts totaling more than $180 million. Similar trends are apparent in overall PPP loan data. In contrast, states receiving the least include Alaska, Montana, and Wyoming, where in each state, programs received loans totaling under $7 million.

Child care providers accessing the PPP were almost entirely for-profit businesses, and were more likely to be for-profit than the overall industry. Just 10% of recipients reported non-profit status, lower than the overall industry makeup in which about 23% are non-profit businesses.

Overall, the child care child care industry received similar total funding as sectors such as public administration, management, and utilities companies, but received more total loans than these industries, indicating recipients applied for smaller amounts on average. At the same time, the size of the child care industry is disproportionately large when compared to these sectors, suggesting inequitable access to PPP funds for child care programs. This data also supports our previous concerns about the program, and responses from previous surveys of providers documenting challenges in accessing and benefiting from the PPP.

As of August 8, the PPP closed to new loan applications with almost $134 billion in available funding, but the Coronavirus Response and Relief Supplemental Appropriations Act, passed in December 2020, reopened the PPP through March 31, 2021. The law also increased the program’s total authorization from $659 billion to $806.45 billion, and included reforms such as allowing businesses who have already received a loan to receive a “second-draw” of up to $2 million. On February 22, in an attempt to support our nation’s smallest companies, and ensure that lenders could appropriately work with such businesses, the Biden Administration announced a 14-day period in which only those companies with fewer than 20 employees could apply for the PPP. As of February 21, the SBA had approved over $140 billion during 2021 under these new authorities, or about a quarter of the amount provided during 2020.

In 2019, the Committee on Economic Development reported child care to be a $47.2 billion per year market, employing 1.5 million workers. The $2.3 billion that was loaned to providers during 2020 was a critical lifeline for retaining staff, in addition to the $3.5 billion in child care funds provided in the CARES Act. However, the reality that less than 1% of the total $525 billion in lending was given to child care during 2020 indicates the challenges of reaching the most critical and important small businesses around our country – the child care industry.

The Bipartisan Policy Center analyzed publicly available data on recipients of the Paycheck Protection Program released by the Small Business Administration on August 8, 2020. Recipients identified under the NAICS code 624410, “Child Day Care Services” were included in our analysis. The “Child Day Care Services” industry includes establishments primarily engaged in providing day care of infants or children, including for older children when they are not in school and may also offer pre-kindergarten and/or kindergarten educational programs. Illustrative examples include child day care services, nursery schools, child or infant day care centers, and preschool centers.

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