Local businesses share $ 521.5 billion in federal coronavirus aid | Local News
Marglen Industries and Shorter University in Rome were among the first beneficiaries of the small business loan program aimed at minimizing layoffs during the coronavirus pandemic.
In total, the Treasury Department’s Paycheck Protection Program cleared $ 520 billion for nearly $ 5 million, mostly from small businesses and nonprofits. On Monday, the government released the names and other details of recipients who have been approved for $ 150,000 or more.
Over 86% of loans were less than $ 1 million.
The precise amount of the scholarship is not indicated, but Marglen and Shorter fall into the category of recipients receiving between $ 2 million and $ 5 million. Marglen sought to preserve 198 jobs and Shorter’s candidacy noted 403 positions.
Foss Manufacturing Co. in Rome, with 229 at-risk employees, also fell into this category.
Among the companies in the surrounding counties were Surya Carpet, Aquafil USA and Taylor Transport in Bartow County – with 250, 296 and 240 employees respectively. Gordon County Employment Agency 2Work, LLC, citing 500 employees, and Talley Construction Co. in Rossville, with 223, have also received loans of up to $ 5 million.
The program, hastily passed by Congress in March, was designed to provide small businesses with loans of up to $ 10 million, based on a company’s average monthly payroll before the pandemic. Loans can become grants if borrowers use the proceeds primarily to pay workers – with certain expenses allowed for rent and overhead.
Almost from the start, the PPP was the subject of controversy, as some publicly traded companies exploited it. Many have repaid PPP loans after their borrowing drew criticism. Supporters of the program say it kept tens of millions of workers employed during the pandemic and contributed to the astonishing 2.5 million jobs created in the United States in May, with 4.8 million more jobs in June.
Two local businesses have received loans of $ 5 million to $ 10 million.
Apache Mills’ app in Calhoun did not plan to save any jobs, the statement said; Quest Global Inc., a freight trucking company in Cartersville, planned to pay 420 employees with its loan.
Reports on the program have revealed that members of Congress have taken out or benefited from PPP loans, as well as companies that have reported large revenues, closed facilities or filed for bankruptcy after obtaining PPP assistance. .
Reports that entities like Shake Shack Inc. and the Los Angeles Lakers got loans before mom-and-pop borrowers prompted these two and others to repay their loans. The recipient list released on Monday includes Kanye West’s clothing line, sculptor Jeff Koons, high-dollar law firms and hedge funds, Girl Scouts and political groups on the left and right.
The initial public outcry prompted the Trump administration to promise to review all loans over $ 2 million and tell companies that had access to other sources of capital that they were unlikely to qualify for the program. rescue.
More than 30 companies in northwest Georgia received loans of up to $ 2 million in the first round of awards, including Rome News-Tribune’s parent company, Times-Journal Inc., which targets to save 183 jobs.
Georgia Museums Inc. in Cartersville has listed 159 jobs. It is the umbrella company of Tellus, the Booth Western Art Museum, the Bartow History Museum and the Savoy Automobile Museum.
Nonprofit Murphy-Harpst Children’s Centers Inc. in Cedartown, which requested operating funds, and See Rock City Inc. in Lookout Mountain, with 159 jobs at stake, also secured loans.
In Floyd County, recipients of up to $ 2 million included the Darlington School, 151 jobs; Advanced steel technology, 96 jobs; Blacksmith OTR LLC, 87 jobs; Corgroup Inc. DBA Zaxby’s Rome, which listed 488 jobs in its application; Home Team Builder Services LLC, 145 jobs; Springfield Investments in Silver Creek, which did not list any jobs; Suhner Manufacturing Inc., 117 jobs; Welborn Chevrolet, 126 jobs; and WE Hicks Inc., a Cave Spring landscaping company, with 170 jobs.
Some of the larger employers in the surrounding counties were Bartow Paving Co. and Georgia Bone & Joint Surgeons in Cartersville; the builders of Cedartown Duffey Southeast Inc .; Tai Ping Carpets Americas in Adairsville; and Brumlow Mills, Northwest Georgia Paving and Western Plastics in Calhoun.
According to the data, California, Florida, Texas, New York and Illinois had the most loans and the largest amount approved.
Overall, companies in the health care and social assistance sector accounted for the largest amount of loans at $ 67.4 billion, followed by professional, scientific and technical services companies with $ 66.4 billion. dollars; construction at $ 64.6 billion; $ 54 billion manufacturing; and accommodation and food services at $ 42.1 billion.
The disclosures came after members of Congress and others expressed concern about the level of transparency surrounding the PPP.
The list released on Monday stood at less than 15% of all borrowers. The Associated Press and other news outlets are suing the government for the names of the other recipients.
A summary, also released on Monday, says Georgian entities have received 156,814 loans totaling $ 14.5 billion through June 30 – and $ 191.5 billion remains for nationwide distribution. Congress voted last week to extend the program until August 8.
Rome News-Tribune Night editor-in-chief Diane Wagner contributed to this report.