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.
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.
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.
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.
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.
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.