Philadelphia law firms receive most PPP loans of any sector in the city

The Paycheck Protection Program, a federal loan program created to aid small businesses during the coronavirus pandemic, has loaned $110 million to Philadelphia-based law firms, the largest COVID-19 relief awards for any Philadelphia sector.

PPP loans can be forgiven by the federal government as long as 60% of the grant is used towards payroll, The Philadelphia Inquirer reported. Should the grant go to other expenses, businesses will be expected to pay back the loan at 1% interest. 

The restaurant sector followed in second place after the legal business sector, taking in a $75 million payout from the loan program. 

Though employment figures have yet to be fully verified, statistics released by the federal government currently show that taxpayer funding has helped restaurants keep more employees paid than law firms during the pandemic, despite the large gap in grant money. The loan program has kept approximately 14,800 restaurants workers employed, compared to 8,000 law firm employees, the Inquirer reported.

Restaurants in Philadelphia, including in University City, have not fared well during the pandemic, as loans from both the PPP and Philadelphia’s Small Business Relief Fund could not replace the sales they were receiving while students were on campus.

Smokey Joe’s, a University City bar often referred to as the “Pennstitution," has not benefitted greatly from Philadelphia’s efforts to support small businesses. Smokey Joe’s Owner and 2009 College graduate Paul Ryan III told the DP that the state's temporary law allowing restaurants to sell alcoholic beverages to-go did not bring in any additional business. 

While Smokey Joe’s does intend to open in the fall semester, their PPP loan is going towards paying its employees during the summer months.

New Deck Tavern on 34th and Sansom Street also suffered during the pandemic. The restaurant closed for three months before opening again in June at a reduced capacity.