April 24, 2020 Press Releases

Report: Arizona Small Businesses Lost Out Under PPP

Report: Arizona Small Businesses Lost Out Under PPP

PHOENIX — According to an analysis by KPHO-TV/KTVK-TV, Arizona small business owners received far less than their fair share of support under the recently-passed Paycheck Protection Program. The analysis comes as investigative journalists have exposed how U.S. Sen. Martha McSally’s big bank donors unfairly favored large clients at the expense of small business owners.

KPHO-TV/KTVK-TV’s analysis found that while “19,280 loans were approved for Arizona businesses,” the state “came in last in terms of the number of loans per capita.”

Last week, the Arizona Republic’s Ryan Randazzo reported that as many as 9 in 10 Arizona small businesses were “left out so far” under the program.

While the program has faced scrutiny and Arizona small business owners have expressed their frustration with its shortcomings, McSally has taken a more laid back approach to oversight. Last week, she said, “I’m not dialed into the Washington, D.C., drama and those things that are happening,” when asked for her opinion of Trump firing the COVID-19 stimulus watchdog.

KPHO-TV/KTVK-TV: Arizona ranks last in small business paycheck protection loans

By Morgan Loew and Melissa Ziedy, 4/22/20

Key points:

  • “Arizona ranked last in the United States for paycheck protection loans granted by the Small Business Administration, according to data compiled by the Associated Press and analyzed by CBS 5 Investigates.”

  • “According to data compiled by the Associated Press, 19,280 loans were approved for Arizona businesses, totaling $4.8 billion.”

  • “CBS 5 Investigates analyzed the numbers and compared Arizona’s figures to those from other states. When taking into account the state population, Arizona came in last in terms of the number of loans per capita [number of loans per 100,000 residents]. That means the ratio of loans to population was smaller in Arizona than in any other state.”

  • “The [Arizona Commerce Authority] statement also indicated that the ‘first come, first served’ approach set up by the SBA may have created challenges for ‘under-banked, under-served, and minority-owned businesses.’”

  • “‘This was for the big guys who knew how to get the money, and they were ready for it,’ said Kara Goodyke, who owns Arrowpoint Home Inspections, along with her husband. Goodyke said she did not get a chance to apply for a loan through the PPP, because her business is too small. But she complained that she has read about several big corporations receiving millions of dollars through the program.”

Read the full report here.