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Which local jobs came out ahead in the Paycheck Protection Program?

(Claire Schoen)

NORWALK, Conn. — Norwalk-based businesses that received loans under the Paycheck Protection Program (PPP) have retained close to 20,000 jobs, according to recent data from the Small Business Administration.

As part of the application process, companies were asked to identify the number of “jobs retained,” during the period of the loan.

PPP-Borrower-Application-Form-508 (1)

NancyOnNorwalk took a look to see which jobs were protected, at which companies, in which industries.

Among larger Norwalk businesses – those receiving loans greater than $150,000 – 11,790 jobs were retained. There were 293 companies in this tier, and the top 10 of them accounted for 27 percent of jobs retained by this group.

Not all the jobs being protected are located in Norwalk. Several of the larger companies are headquartered in Norwalk but are reporting numbers for employees across the country. Best Friends Pet Care Holdings, for example, has locations in 16 states but its home office is in Norwalk.

Loans Over $150K – jobs retained by company (2)

Which industries fared better than others in the large-loan group?

While the winning industry categories were driven by just a few large companies in the mix, doctors and nursing care facilities, full-service restaurants and educational support services were among the top 10 industry categories in terms of jobs protected by PPP funding.

(Claire Schoen)

Companies that received larger loan sizes and also reported on jobs retained accounted for between $115,800,000 to $279,350,000 in total funding. This translates to between $9,821.88 and $23,694 per job retained.

 

Restaurants, bakeries and religious organizations hold onto jobs

Smaller companies – those receiving loans under $150,000 – held onto nearly 8,000 jobs. A total of 1,693 companies reported retention of 7,717 jobs and received $58,438,097 in loan amounts – an average of $7,573.64 per job.

(Government data reports loans over $150,000,000 in broad ranges and identifies the company; for loans under $150,000,000 the data includes exact loan amounts but doesn’t identify the specific business.)

Full-service restaurants were the clear winner in job retention in the small business category, followed by retail bakeries and dentists. Religious organizations ranked sixth.

(Claire Schoen)

Is the money only for protecting jobs?

PPP loans are available to both for-profit and non-profit organizations, and provides funding for certain expenses beyond payroll protection.

Funds may also be used for rent or mortgage payments and utilities. If companies follow the program’s guidelines, many – if not most – loans will be forgiven.  According the SBA website, here are the requirements for loan forgiveness:

Loan Details and Forgiveness

  • The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 60% of the forgiven amount must have been used for payroll).
  • PPP loans have an interest rate of 1%.
  • Loans issued prior to June 5 have a maturity of two years. Loans issued after June 5 have a maturity of five years.
  • Loan payments will be deferred for six months.
  • No collateral or personal guarantees are required.
  • Neither the government nor lenders will charge small businesses any fees.

Loan Forgiveness

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. The loan forgiveness form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:

  • Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles
  • Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the 24-week period after receiving their PPP loan
  • Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
  • Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30
  • Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined

 

Complete data sheets for the PPP program, by state, is available for download here.

Information on the overall program can be found here.

Story corrected at 3:16 p.m.: $9,821.88 instead of $.2 as the least amount spent to retain a job.

2 comments

DryAsABone August 24, 2020 at 10:58 am

The “jobs retained” number is as bogus as the numbers the CT DECD used in the great Malloy give-away.
Go through the PPP “entitlement payments” and check the hedge funds,religious institutions,real estate brokers…you name it. All the takers jumped on the opportunity to enrich themselves and it was a complete FAIL. So much so,that our government wants to do it again.
Trash haulers. Pool companies. Really? Their business was not affected by anything but perhaps poor management and for the most part they were busier than ever due to COVID. I looked at farmers I know,out West, and they were neck deep in PPP. Usually they rake in Federal subsidies but this is just a windfall. And the best part…generally they complain the loudest about welfare!
No wait! The best part?!! Banks geta huge “fee” of up to 5% for pushing paper. The fees were a no-brainer for them and that accounts for their aggressive phone calls.
An absolute FAIL by congress and Trump, and the bailout will go down as one of the greatest financial frauds in out history.

john j flynn August 25, 2020 at 7:53 am

25 Lobbyists and law firm, who approved this this. Ovarian cancer, talc, and a company that dumpe carcinogens into Oyster shell park. Planned Parenthood? we should have a say in forgivable loans granted through Congressman Jim Himes’ website. What was the approval process? King industries is a chemical plant with a permit to run exhaust into the sewage lines above the Oyster beds? We have asked candela for the list of products they sell. How can a chemical company sell hazardous waste in a residential community without an evacuation plan? Three thousand people can’t be evacuated from that plant in 3 minutes. What is the kill zone? hydrofluoric acid evaporates at 79 degrees and travels 19 miles and hour. They had 2 unreported accidents already and no one from the City is allowed in without an appointment. They now plan to develop Lowman’s Plaza. How can they evacuate if they have a spill? How many people live within the kill zone and why doesn’t anyone care to know? Loans through Himes need oversight not form Himes. Himes took money from Oxy, sits next to Schiff, and is responsible for the NSA nightmare, FISA abuse, and the list goes on and on. Its bribery. Himes never referred the financial crisis for criminal prosecution and his largest donor is Bank America. Its criminal.

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