Analysis: Law, CPA firms got more PPP loans than other sectors
Law offices, accounting firms and other similar professional offices received more than twice as many coronavirus-relief loans on Long Island as did hard-hit restaurants and hotels, according to a Newsday analysis of federal loan data.
The professional, scientific and technical services industry, which includes lawyers and accountants, topped the list of Paycheck Protection Program loans made in Nassau and Suffolk counties as of June 30, the latest data available, with 9,515 loans. The sector accounted for nearly 15% of the 65,426 loans in the four congressional districts that encompass most of the Island.
In contrast, the accommodation and food services industry, which includes hotels, motels, restaurants, bars and delis, received 4,078 loans, or 6%, the analysis shows.
Newsday analyzed the data from the U.S. Small Business Administration and Department of the Treasury using the industry codes reported by banks and other private lenders for each borrower under the North American Industry Classification System, or NAICS, which is how the federal government classifies businesses.
Business and financial experts said the distribution of loans was largely determined by borrowers’ awareness of the PPP — and who they knew.
“Attorneys, CPAs and other service providers understood the PPP rules because they were looking out for their clients to make sure they got loans,” said Neil Seiden, managing director of the financial advisory firm Asset Enhancement Solutions LLC in Uniondale. The company has helped to secure PPP loans for 500 companies and nonprofits in 30 states, he said.
“Accountants and attorneys network with each other and ...
More on: www.newsday.com