Telecommunications Resellers and Agents

Businesses and organizations in the Telecommunications Resellers and Agents industry (NAICS code 5173, part of the Information sector) received 5,712 PPP loans totaling $736.1M during the COVID-19 pandemic.

The average loan for this industry was $128,873 — above the national PPP average of approximately $67,000. This reflects the small business character of most participants in this industry, typically sole proprietors and micro-businesses with modest payroll obligations.

93.4% of loans in this industry were forgiven — totaling $704.5M. To qualify for forgiveness, borrowers had to demonstrate that they maintained headcount and compensation levels and used at least 60% of loan proceeds for payroll expenses.

Notable recipients in this industry include LIPSEY COMMUNICATIONS, LLC of HOUSTON, TX ($10,000,000); HOTWIRE COMMUNICATIONS, LTD of FORT LAUDERDALE, FL ($10,000,000); and NEXTIVA, INC. of SCOTTSDALE, AZ ($10,000,000).

The loan amount distribution for this industry shows a more even spread across loan sizes, suggesting a mix of small and mid-sized businesses. Because borrower names are withheld for loans under $150,000, a substantial portion of recipients in this industry may not appear by name in this dataset.

As part of the broader Information sector — publishing, motion picture, broadcasting, telecommunications, and data processing. — businesses in NAICS 5173 were particularly reliant on PPP assistance to bridge the gap between declining revenues and fixed overhead obligations during the shutdown period.