Trump’s Rural Base Fared Better Than Coastal Cities in SBA Loans
- Community banks were quick to line up customers with SBA loans
- Disparity adds to partisan rancor as next round of aid debated
Nebraska recieved enough money to cover 81% of its eligible payrolls.
Photographer: Dan Brouillette/BloombergThis article is for subscribers only.
The first round of coronavirus aid to small businesses was a boon to rural states that backed President Donald Trump but haven’t been hit as hard by the pandemic as Democratic strongholds on the coasts, contributing to rising political tensions over a multi-trillion-dollar relief effort.
The skewed distribution doesn’t necessarily point to regional or political bias in the Paycheck Protection Program’s administration or design, which is first-come, first-served. In many cases, smaller lenders who have close relationships with small-town business owners played a outsized role in issuing loans by moving quickly to tap the program.