Two dozen Indianapolis companies received PPP loans of at least $ 5 million
The Treasury Department on Monday released the names of more than 650,000 businesses that have received funds from the government’s small business loan program – the Paycheck Protection Program – a massive effort to support the economy as states shut down their businesses. gates in April to contain the viral outbreak.
The Treasury only identified a fraction of the total borrowers, only naming companies that got more than $ 150,000. These businesses represented less than 15% of the nearly 5 million small businesses that received loans.
The list included 24 Indianapolis companies and nonprofits that received loans between $ 5 million and $ 10 million: American Structurepoint Inc .; Buckingham Management LLC; Cunningham Restaurant Group LLC; Diversified Staffing Services Inc .; Envigo RMS LLC; Hall Render Killian Heath & Lyman PC; Heart of the House Hospitality Inc .; Highpoint Digital Inc .; HKP Corp. ; Huse Culinary Inc .; Ice Miller LLP; IF&P Foods LLC; Key Benefit Administrators Inc .; KSM Business Services Inc .; Processing Materials Inc .; Micrometl Corp .; Naab Road Surgical Group; Lead the Way Project Inc .; Protrans Holdings Inc .; Shiel Sexton Co. Inc .; Superior Oil Company Inc .; Tube Processing Corp .; V Global Holdings LLC; and Wood-Mizer LLC.
The list also included Buckingham Management LLC, but the company later released a statement saying it had refunded the money.
“Buckingham returned the funds shortly after closing and is not participating in the program,” the company told IBJ. “After requesting and receiving funds in good faith in accordance with program guidelines, the loan was repaid due to uncertainties in program directions and changing economic conditions.”
In total, the Treasury Department’s list includes 2,499 Indianapolis entities and 11,853 statewide entities that have received P3 loans of $ 150,000 or more. This list includes the Indianapolis Business Journal, which received a loan of between $ 350,000 and $ 1 million. The newspaper declined to be more specific.
The government also released information on those who borrowed less than $ 150,000, although it did not disclose the names of the recipients of these small loans. Statewide, 67,295 Indiana entities received P3 loans under $ 150,000. This number includes 9,731 recipients in Indianapolis.
The average loan amount for the entire program was $ 107,000, the Treasury Department said in a general summary of the program. The government distributed $ 521 billion under the Paycheque Protection Program, a critical part of the government’s $ 2 trillion bailout program. Loans can be canceled if the companies primarily use the money to continue paying their workers.
The beneficiaries employed 51 million people before the start of the pandemic, said Treasury Secretary Steven Mnuchin, or about 85% of all workers in companies with fewer than 500 employees. Not all of those jobs were saved. The government will not know how many there were until companies ask for loan cancellation, a process that is only just beginning.
While the data included demographic information on some borrowers, officials said it was incomplete because companies were not required to provide information on their race, ethnicity and gender. More of this data may become available when borrowers request loan cancellation.
But the government was able to determine that 27% of the loan money went to low and moderate income areas, officials said.
The PPP was operational just days after being approved by Congress at the end of March. It has provided loans of up to $ 10 million to small businesses to help them recover from government-ordered shutdowns and lost revenue caused by the virus outbreak. The ability to convert loans into grants made the program particularly attractive.
Once opened on April 3, the PPP sparked a flood of applications from desperate small business owners. The SBA approved more than 1.6 million loans worth $ 349 billion in less than two weeks, depleting the initial funding. Millions of other companies had to wait almost two more weeks for Congress to approve an additional $ 310 billion. Nearly 3.2 million loans worth $ 172 billion were approved in the second round as of June 30, leaving an estimated $ 132 billion unclaimed. Congress approved an extension of the program this week until August 8.
Economists generally attribute to the program helping to prevent the labor market collapse from being much worse. Employers created 7.5 million jobs in May and June, a solid increase despite leaving the economy nearly 15 million fewer jobs than before the pandemic. Many economists attribute part of this gain to PPP.
Yet other analyzes, such as that conducted by economists at Standard & Poor’s, found that firms in states with fewer job losses received more loans than those in hardest-hit states.