Mississippi’s economy survived COVID much better than the nation, state economist Corey Miller said earlier this month. The state economy contracted only 1.8% compared to the national decline of 3.4%. Miller attributed much of this to federal transfer payments, pointing out such payments were up 26.4%.
While CARES Act (and related Consolidated Appropriations Act of 2021) direct payments to individuals and farmers plus increased unemployment and SNAP benefits accounted for much of this, loan forgiveness to small businesses also played a key role. (Varying estimates indicate 16% to 30% of pandemic benefits came to Mississippi in the form of loan forgiveness.)Altogether during two rounds of the Paycheck Protection Program (PPP), $5.4 billion was pumped into the state economy through 138,484 loans to small businesses. These funds allowed businesses to stay open and retain employees in both 2020 and 2021. No doubt this helped sustain payroll employment which Miller said dipped 4.3% in Mississippi compared to 5.8% nationally.
A total of $4.9 billion of that $5.4 billion was forgiven, covered by CARES Act funds.
The U.S. Small Business Administration (SBA) managed the PPP loan program by determining eligibility for bank loans. SBA data shows PPP loans spanned nearly every business sector in the state and reached every county. Health Care and Social Services garnered the highest total at $739 million for 10,828 loans. The bucket category of Other Services received the highest number of loans at 24,801 for a total amount of $507 million. The state’s largest county, Hinds, received 12,821 loans while the smallest, Issaquena, got 28.
Over 88% of the loans were for amounts of $50,000 or less. Community Bank of Mississippi issued the highest number of loans at 9,722 for a total of $439 million. Trustmark National Bank loaned the highest total at $587 million for 7,334 loans.
On a smaller scale the SBA provided $77 million in forgivable loans to 511 restaurants.
The PPP impact illustrates how a stimulus program that spurs business activity in every county can benefit the overall economy as well as tax collections. Most hope the pending stimulus from the American Recovery Plan Act (ARPA) for infrastructure improvements will do the same.
The state has $1.8 billion in ARPA funds awaiting spending approval in the Legislature. Cities and counties are getting another $900 million, according to Mississippi Today. Gov. Tate Reeves and Lt. Gov. Delbert Hosemann have proposed using state ARPA funds to match local ARPA funds for water and sewer and other major infrastructure projects. Funding infrastructure projects in most if not all cities and counties in Mississippi would provide another broad boost to local economies and employment just as PPP loans did.
ARPA funds must be obligated by Dec. 31, 2024, and fully expended by Dec. 31, 2026. Since infrastructure projects can take months, sometimes years, to gain regulatory approval, any delay can put millions in funding at risk.
Speaker Philip Gunn and House members should get fully on board and quickly authorize expenditure of ARPA funds across the state as Gov. Reeves and Lt. Gov. Hosemann have suggested.
“Now let the sickle do its work; the harvest is ripe and waiting” – Joel 3:13.
Crawford is a syndicated columnist from Jackson.
9 comments:
Oh cmon. When you’re already at the bottom you can’t really get any lower. Just sayin This is like a homeless person saying “hey that tornado that came through sure did a lot of damage, but I came out of it ok!”
“The American Republic will endure until the day Congress discovers that it can bribe the public with the public’s money.”
-Alexis De Tocqueville
The State better take a look at the condition of it’s rural hospitals before squandering this money. Most, if not all, are in serious financial trouble brought on by the Government, both Federal and State, and neither have a clue of how to address the problem. And no, Medicaid expansion will not begin to address this problem.
12:15, FAKE.
Verdict: False
It does not appear in any of de Tocqueville’s writings or speeches.
@11:16 AM
AGREED.
Any more revelations to offer us?
I'd never heard of a 'state economist' before last year's discussions re budgeting, Federal money infusions to individuals and communities, etc.
A question that won't be answered: What are the qualifications, who hires him/her and to whom does a state economist directly report?
Lots of the fake religious pious will be buying beach houses in Gulf Shores and Destin with that socialism money.
@1:32pm Then please add to the credit, "...variously attributed to Alexis de Tocqueville and others" and it satisfies.
Regardless of who said it - even if it was from someone yesterday - the words have a profound truth in them that is inescapable.
Rekon the issue is that some of the funds are already missing and this whole thing is a way to keep it on the down low ? We already got plenty of chumps in lower offices picking it clean so why not the big boys and girls. Shad would know .
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