In a massive effort to keep employers writing paychecks during the pandemic, the federal government pumped more than $150 million into Glendale businesses as part of a loan-forgiveness program.
Businesses who maintain full employment will not have to pay back the Paycheck Protection Program (PPP) loans.
Going out to construction companies, contractors, health care providers, car dealers, restaurants, churches and other businesses, the funds were to be used to protect at least 35,000 Glendale jobs—and avoid mass layoffs—as the economy reeled during the first months of the COVID-19 shutdowns.
Three Glendale businesses landed between $2 million and $5 million: CDBK janitorial services, which employs 500; and car dealerships Don Sanderson Ford (471 employees) and Sands Motor Company/Sands Chevrolet (245 employees).
Six more Glendale companies were granted PPP loans between $1 million and $2 million: Wendy’s franchise owner JMJ, which has 400 employees; Danco Plumbing, 145 employees; Elite Roof Supply, 63 employees; Premier Underground Construction, 144 employees; Tri-mega Mechanical Heating, 97 employees; and Truss Fab Components, 153 employees.
Seventy Glendale businesses landed loans between $350,000 and $1 million.
More than 100 Glendale businesses landed $150,000-$350,000 loans.
In the under-$150,000 category, 2,295 Glendale businesses received a total of $130 million in PPP loans, protecting an estimated 23,500 jobs.
In the largest loan category, 14,000 Glendale jobs were protected.
Records released by the U.S. Small Business Administration (SBA) in July show details of the funding by the PPP. Nationally, the program gushed out $520 billion to 5 million businesses.
According to PPP guidelines: “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.”
And there may be more money headed this way, as the PPP, which launched in April, resumed accepting applications from early July through Saturday, Aug. 8.
The SBA did not identify the entities that each borrowed less than $150,000 but included the names and addresses of those that borrowed $150,000 or more. Both categories show the number of the companies’ employees.
At the higher end, the SBA was not specific in the loan amount, listing recipients only within one of five categories of loan ranges: $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.
Others receiving loans greater than $150,000: Our Lady of Perpetual Help Roman Catholic Parish; Cerreta Candy Company; Glendale Pediatrics; Westgate; Pullano’s Pizza; Asiana Market; Joy Christian School; Rainbow Housing Assistance; and dozens of construction companies, contractors, doctors, dentists and other medical facilities.
The PPP loan funds—described by the SBA as “a direct incentive for small businesses to keep their workers on the payroll”—are part of the $2 trillion pandemic relief package approved by Congress in March that also included other assistance to individuals, businesses and local and state governments.
PPP loans are aimed at preserving jobs by helping borrowers maintain their payroll and stay afloat by using some of the money for rent, mortgage interest or utilities.
Arizona’s share of the PPP money totaled between $6.5 billion and $12.5 billion.
While some wanted more details in the loan recipient data, lobbyists for organizations like the National Federation of Independent Business were reported to be concerned that businesses would be hurt competitively or subjected to “public shaming” if identities were disclosed.
Treasury Secretary Steven Mnuchin said the way the loan data was released “strikes the appropriate balance of providing the American people with transparency, while protecting sensitive payroll and personal income information of small businesses, sole proprietors and independent contractors.”