California has received more money than any other state in Paycheck Protection Program funding, according to mid-May numbers from the Small Business Administration.
Noah Yosif, assistant vice president for economic policy and research and deputy chief economist at the Independent Community Bankers of America, said that fund distribution makes perfect sense to him.
"A lot of these small businesses were able to get into the second round," Yosif said. "States that had a large small business presence, like California, were unable to be served during round one. [During the second round] where there's small businesses, there should be more PPP loans."
According to the SBA, California had about 4 million small businesses in 2019 — making up 99.8% of businesses in the state.
Businesses that were approved for the loan have eight weeks to spend 75% of it on payroll. But some shelter-in-place restrictions have prohibited businesses from opening. Jeff Bellisario, executive director of the Bay Area Council Economic Institute, said non-essential businesses are impacted the most by these restrictions, and their recovery will be likely be slow.