City businesses receive millions in PPP loan money
More than 800 Suffolk businesses received anywhere from $27.9 million to $68.75 million in Paycheck Protection Program loan money from the Small Business Administration to help with their businesses.
The cybersecurity company ISHPI Information Technologies Inc. received the most of any business in the city — between $2 million and $5 million.
Small businesses could receive loans of up to $10 million under the program, set up to help those adversely affected through government-induced shutdowns and financial losses caused by the coronavirus pandemic.
The SBA identified businesses receiving at least $150,000 in PPP loan money. In Suffolk, 101 businesses received at least that amount.
Businesses receiving less than $150,000 were not identified by name, but rather by the type of business they were as listed by the North American Industry Classification System. There were 711 Suffolk businesses in this category.
There have been nearly 4.9 million loans issued worth nearly $521.5 billion to small businesses across the United States.
The SBA said the loan money was designed to provide immediate help to allow small businesses affected by the coronavirus pandemic to maintain payroll, hire back employees who may have been laid off and cover applicable overhead. The program was established through the passing of the CARES Act, implemented by the SBA with Treasury Department support.
The program provides small business with money to pay for up to eight weeks of payroll costs, which include benefits. Money can also be used to pay interest on mortgages, rent and utilities.
“The PPP is providing much-needed relief to millions of American small businesses, supporting more than 51 million jobs and over 80% of all small business employees, who are the drivers of economic growth in our country, said Treasury Secretary Steven T. Mnuchin in a statement. “We are particularly pleased that 27% of the program’s reach in low and moderate income communities, which is in proportion to percentage of population in these areas.”
The average overall loan amount is about $100,000, which Mnuchin said demonstrates that the program is serving the smallest of businesses.
Mnuchin said the release of the loan data strikes “an appropriate balance” of transparency while protecting sensitive payroll and personal income information of small businesses, sole proprietors and independent contractors. The disclosure covers all of the $4.9 million PPP loans that have been made.
The data released includes loan-level data such as business names, addresses, NAICS codes, ZIP codes, business type, demographic data, non-profit information, name of lender, jobs supported, and loan amount ranges as follows: $150,000 to $350,000, $350,000 to $1 million, $1 million to $2 million, $2 million to $5 million and $5 million to $10 million.
These categories account for nearly 75% of the loan dollars approved. For all loans below $150,000, SBA is releasing all of the above information except for business names and addresses.
Six additional city businesses received between $1 million and $2 million, including Allfirst LLC in Northgate Commerce Park, Beamon and Johnson Inc. off of South Saratoga Street downtown, Command Post Technologies Inc., The Nansemond Suffolk Academy Association Inc. off of Pruden Boulevard, Tidewater Utility Construction Inc. off of Lummis Road and Wardell Orthopaedics P.C. in North Suffolk off of Harbour View Boulevard.
Four auto dealers in the city — Barton Ford, Duke Automotive Corp., Mike Duman Auto Sales and Starr Motors Inc., all received between $350,000 and $1 million each in PPE loan money. They were among 29 city businesses in this category.
Suffolk Publications, which owns the Suffolk News-Herald, applied for and received a PPP loan in the amount of $111,200.