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PPP Data on Preserving Jobs in the Arts & Culture Sector

  • Posted Jul 16, 2020

According to SBA data, a total of 5,713 nonprofit recipients classified as arts and culture organizations received $1.1 billion in PPP loans to support at least 117,805 jobs.

Creative Arts Center of Dallas, Dallas, TX. 'Art as A Second Language' program at NorthPark Center. Image credit: Andrea Blanco Creative Arts Center of Dallas, Dallas, TX. 'Art as A Second Language' program at NorthPark Center. Image credit: Andrea Blanco

To date, Johns Hopkins University reports over 3,000,000 confirmed COVID-19 cases and over 130,000 deaths in the United States alone. On July 6, 2020, the loan program for businesses jumped to the front of the news cycle as the Small Business Association (SBA) released loan recipient data for the Paycheck Protection Program (PPP). Loan recipients ranged from luxury resorts and large restaurant chains to mom and pop shops and nonprofit institutions, which the SBA indicates supported more than 51 million jobs. The release of this data came after arguments between Steve Mnuchin, Secretary of the Treasury, and many media outlets that filed Freedom of Information Act (FOIA) requests to access PPP data as laid out in the legislation authorizing the PPP program.

 

So how did the nonprofit arts and culture sector fare in receiving PPP funds?

In parsing the data, limitations on identifying characteristics such as organization names and addresses associated with loans under $150,000 and the omission of specific loan amounts given to organizations receiving loans over $150,000 prevent a perfect accounting of distributions when compared to all nonprofit arts and culture organizations in the United States. However, there is enough information to look at PPP recipients in general across the sector.

 

In total, 5,713 nonprofit recipients classified as arts and culture organizations[1] received $1.1 billion in loans (average of $194,191 per organization) to support at least 117,805 jobs (22 on average per organization).[2] The SBA reported that over 85% of loans were for less than $150,000. For arts and culture nonprofits, that percentage was 80%. The following table shows the breakdown of arts and culture recipients receiving loans under $150,000. 

 

Breakdown of Loans Under $150,000

NAICS Sector Loan Count Avg. Loan $ Total Loan $ Avg. Jobs Total Jobs $ per Job
Performing Arts Organizations (7111-) 1,968 34,390 67,680,347 8 14,666 4,615
    Theater Cos. (711110) 762 37,021 28,210,000 7 5,304 5,319
    Dance Cos. (711120) 180 36,905 6,642,926 8 1,377 4,824
    Musical Groups & Artists (711130) 634 31,375 19,891,938 10 5,987 3,323
    Other Perf. Arts Cos. (711190) 392 32,999 12,935,484 6 1,998 6,474
Museums and Historical Sites (7121-) 2,603 37,531 97,693,427 6 15,386 6,350
    Museums (712110) 1,943 36,448 70,818,527 6 11,553 6,130
    Historical Sites (712120) 307 32,357 9,933,631 5 1,484 6,694
    Zoos/Botanical Gardens (712130) 125 58,018 7,252,206 9 1,041 6,967
    Nature Parks and Other (712190) 228 42,496 9,689,064 6 1,308 7,408
TOTAL (7111- and 7121-) 4,571 36,179 165,373,774 7 30,052 5,503

In the Under $150,000 category, the average organization received about $36,000 to support 7 employees. These loans represent about 80% of the number of loans to arts and culture organizations, 15% of the dollars loaned to arts and cultural organizations, and about 26% of the jobs supported.

 

The following table shows the same analysis for organizations receiving loans over $150,000.

 

Breakdown of Loans Over $150,000

NAICS   Sector Loan Count Avg. Loan $ Total Loan $ Avg. Jobs Total Jobs $ per Job
Performing Arts Organizations   (7111-) 419 799,673 335,062,926 86 34,009 9,852
    Theater Cos. (711110) 203 650,978 132,148,473 68 13,384 9,874
    Dance Cos. (711120) 31 1,141,276 35,379,555 110 3,201 11,053
    Musical Groups & Artists   (711130) 105 906,595 95,192,428 106 10,319 9,225
    Other Perf. Arts Cos.   (711190) 80 904,281 72,342,470 96 7,105 10,182
Museums and Historical Sites   (7121-) 723 842,291 608,976,490 81 53,744 11,331
    Museums (712110) 534 810,866 433,002,566 77 37,768 11,465
    Historical Sites (712120) 39 499,128 19,466,003 57 1,924 10,117
    Zoos/Botanical Gardens   (712130) 105 1,264,408 132,762,847 119 11,532 11,513
    Nature Parks and Other   (712190) 45 527,668 23,745,074 60 2,520 9,423
TOTAL (7111- and 7121-) 1,142 826,654 944,039,416 83 87,753 10,758

For organizations receiving loans over $150,000, Zoos, Botanical Gardens, and Dance Companies received the largest average loans to support the highest average numbers of jobs. Loans over $150,000 averaged $10,758 per job preserved while loans under $150,000 averaged $5,503 per job preserved.

 

Looking at the entire sector across the country is helpful to get a general understanding of the impact of PPP loans. However, thinking about the program in the context of financial impacts recognized by specific communities can help shed light on the scale of support of PPP loans.

How Did Organizations in NYC Fare?

While the cost of living is higher in NYC than many other parts of the country, the average number of employees signify that larger organizations, compared to the sector as a whole, were primary recipients of PPP funds in NYC, averaging $15,078 per job supported.

REFERENCES: 

[1]. North American Industry Classification System (NAICS) codes starting with 7111 (performing arts companies) or 7121 (museums, historical sites, and similar institutions).

[2]. For this analysis, for loans over $150,000 that were grouped into loan ranges, the values of the loans were calculated as the average value of loans in the particular range as determined by values supplied by the SBA in their report showing loan approvals through June 30, 2020. See https://www.sba.gov/sites/default/files/2020-07/PPP%20Results%20-%20Sunday%20FINAL-508.pdf