Millions of Lower Middle Market Jobs at Risk in Today’s Paycheck Protection Program Vote


Association for Corporate Growth survey shows devastating impact if tens of thousands of lower middle market businesses remain excluded from PPP

CHICAGO, April 9, 2020 –  Survey results published today by the Association for Corporate Growth® (ACG), a worldwide network of 90,000 middle-market professionals, show a devastating impact if Congress votes to again exclude lower middle-market companies, majority-owned by venture capital, private equity, or other private capital providers, from the 7(a) loan program created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act

In less than 48 hours (April 4-6), ACG surveyed more than 1,131 professionals involved in U.S. small and medium-sized businesses, to determine which companies were excluded from the Paycheck Protection Program because of the U.S. Small Business Administration’s adherence to longstanding affiliation rules. The survey shows the devastating effects of this decision:


The affected companies and respective layoffs are nationwide, with California, Texas, Florida and New York leading. ACG estimates that of the 45 million people employed in the middle market, 5 million are at risk due to the current exclusion from the PPP. 

ACG urges Congress, U.S. Secretary of the Treasury Stephen Mnuchin and Small Business Administration Administrator Jovita Carranza to act quickly to allow lower middle market businesses majority-owned by venture capital, private equity, or other private capital providers to access relief funds through the PPP. These small and medium-sized businesses, many with far fewer than 500 employees, would otherwise qualify, if not for private-backing.

Thomas Bohn, President and CEO of ACG, stated, “Right now we are in the thick of one of the worst health and economic crises any of us will experience in our lifetimes. And while Americans have banded together to fight the incredible devastation caused by COVID-19, Congress has continued to exclude tens of thousands of small and medium-sized businesses, currently employing millions of Americans, from loans through the Paycheck Protection Program.”

He continued, “Our survey illustrates a foreseeable future that we can prevent. We implore Congress, to honor the needs of all hard-working Americans by allowing lower middle-market businesses, regardless of capital structure, to be eligible for these loans. Doing so will keep businesses open, save jobs and ensure millions of Americans keep their healthcare coverage during this global pandemic. Let’s work together to minimize the damage and maximize the path to recovery.”

ACG’s professional members drive growth at more than 200,000 middle-market companies, or one-third of private-sector GDP, that employ over 45 million people. Middle market companies drove America’s recovery from the 2008 Global Financial Crisis and can do so again if Congress fulfills its intent to protect them and the Americans they employ. In fact, the middle market was the single largest contributor to growing U.S. jobs, accounting for over 51.8 million jobs created since the financial crisis (2011-2017).

To support the expansion of the PPP and the survival of U.S. small and medium-sized businesses, ACG encourages currently ineligible companies to contact their members of Congress.


Media Contacts:

Karen Craven
Association for Corporate Growth
(773) 230-8785

Jon Goldberg
KCSA Strategic Communications
(917) 364-4277

About the Association for Corporate Growth®
Founded in 1954, ACG has 59 chapters across the globe. ACG’s worldwide network comprises 90,000 professionals within the middle market, including 15,000 members who serve as the investors, lenders, owners, executives and advisers to growing middle-market companies. ACG’s mission is to drive middle-market growth. The organization’s official publication, Middle Market Growth®, highlights stories important to the ACG membership.