NORWALK, Conn. — Norwalk’s business community received between $180 to $348 million in the first round of the Paycheck Protection Program (PPP), according to data released by the Small Business Association on July 6. Of this, $62 million was in loans under $150,000.
The biggest loans went to chemical manufacturer R.T. Vanderbilt Holding Company and to Merritt Hospitality – loan amounts somewhere between $5 million and $10 million. More specific dollar amounts are not available for loans over $150,000.
Government data is released in two categories: loans greater than $150,000 and loans under $150,000. For the smaller loans, businesses are not directly identified but are only listed by the loan amount and industry category. The larger loans are identified by business name and industry category, but loan amounts are listed in ranges: $5-10 million; $2-5 million; $1-2 million; $350,000-1 million and $150,000-350,000.
Because this data for larger loans is only reported in ranges, it’s virtually impossible to come up with an exact amount of total loans.
The government is now discussing forgiving all loans under $150,000. Although many small businesses were shut out of the program initially, it has been extended until August 8.
293 businesses in larger loan categories
There were 293 businesses awarded loans in the “Over $150K” category, led by the mega loans to Vanderbilt and Merritt. Eleven companies fell into the $2-5 million category, 28 received $1-2 million, 103 received $350,000-1 million, and 149 companies got between $15-,000 – $350,000.
Both the Vanderbilt and Merritt Hospitality loans were generated by generated by J.P. Morgan. The 293 higher-tiered loans were extended by 51 different banking institutions, with 14 banks accounting for 82% of the loans:
Some of the familiar names that received more than $1 million include Dooney & Burke, Best Friends Pet Care, King Industries, Star Inc, Stepping Stones Museum, The Maritime Aquarium, Wustof USA.
Companies in the $350,000-1 million range include Deering Construction, Devine Brothers, Carver Foundation, Georgetown Subaru, Lillian August, Norm Bloom & Sons, Pagano’s, Teddy’s Transportation, The Norwalk Glass Co., Tuff Lawn, and Tuscan Oven.
Among the businesses in the $150-$350,000 range are Beinfeld Architecture, Broad River Hospital, Crane Woodworking, Depanfilis & Vallerie, Human Services Council, Lang Pool Service, Reynolds Farm Nursery & Garden Center, Security Solutions, Shoe Mart, The Hatch and Bailey Company, and Washington Prime.
PPP loans under $150K – bakeries and restaurants lead the charge
In the “Under $150,000” category, there were 1794 companies, with loans ranging from $460 to $149,067. A total of $61,959,143.76 was granted to these companies, for an average PPP loan of $34,536.87.
Data reported in this category does not include business name but does list the loan amount. Roughly one third of the smaller loans were extended by three banks: Bank of America (219 loans) People’s United (194 loans) and Fairfield County Bank (192 loans.) Webster Bank, JP Morgan Chase, First County, and Wells Fargo each wrote more than 100 loans for Norwalk small businesses.
Retail bakeries, restaurants, and dentists fared well, both in terms of the number of loans extended and the total amount given out per business category. Beauty salons – 19 in all, accounted for $342,300.67. Perhaps the most unique NAICS classification was a business in the Toilet Preparation Manufacturing industry, which was awarded a loan for $127,200.
Click here for a complete list of loans by NAICS category. Note that these classifications are assigned by the applicants themselves; one hundred of the applications did not include this information.
Wait, what exactly are PPP loans for?
According to the Small Business Association website, “The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.”
As of July 17, nearly 5 million loans had been approved nationwide by 5,454 lenders. The average loan size was $104,779, and a total of $518,197,128,411 had been extended in PPP loans.
Applications include information about how many employees will be retained because of the loan. In our next installment, Nancy On Norwalk will take a look at the number of jobs that Norwalk businesses said they were able to protect thanks to the PPP program.
Note: The Paycheck Protection Program resumed accepting applications July 6 in response to President signing the program’s extension legislation. The new deadline to apply for a Paycheck Protection Program loan is Aug. 8. Details are available at https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program#section-header-11