Nearly 90 companies identifying themselves as collection agencies received more than $1 million in loans through the Paycheck Protection Program, with the top company receiving nearly $9 million, according to an analysis of data released by the Small Business Administration.
In total, 1,684 companies that identified themselves as collection agencies received funds through the PPP program, which was established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and provided loans to small businesses affected by the COVID-19 pandemic. All told, those 1,684 companies received more than $422 million, according to the data’s analysis.
To develop the list, information was pulled from a state-by-state breakdown of recipients of PPP funds. For each state, companies that used a NAICS code identifying themselves as a collection agency (561440 for those of you who are interested), were separated and compiled. Since companies have to choose their own NAICS code, it is possible that there are collection agencies not included in this list because they chose another code.
Radius Global Solutions was the collection agency that received the most through the PPP program — $8.7 million, according to the analysis conducted by AccountsRecovery.net. It was followed by Central Research ($6.7 million) and Enhanced Recovery Company ($6.5 million).
The average PPP loan received by a collection agency was for $250,000.
A number of media outlets had to sue the federal government to have the SBA’s data released to the public. Most of the money made available through the program was lent to larger businesses, according to published reports. The top 1% of loans made under the program account for 25% of the total amount that was lent. That same dynamic is true for the accounts receivable management industry, as well. The 88 companies who received at least $1 million in PPP loans — represent about 5% of the 1,684 companies who received funds, but account for 46% of all the funds that were given to the industry.
