(The Center Square) – A total of 163 businesses and nonprofit organizations across New Jersey received at least $5 million a piece in loans through the U.S. Treasury’s Paycheck Protection Program, a data analysis reveals.
Early in July, the U.S. Small Business Administration, in consultation with the Treasury Department, revealed loan-level data across the country for so-called mega loans – disbursements of $150,000 or more.
A comb-through of the data within New Jersey reveals corporations made up nearly half of the 163 loan recipients receiving at least $5 million of PPP loans and potentially up to $10 million each.
In terms of business type, the balance included limited liability partnerships or corporations, subchapter S corporations, sole proprietorships and partnerships. Four of the loan recipients were classified as nonprofits.
The loan recipients appeared to run the gamut, with health care, construction and law firms being among the entities netting some of the most sizable loans within the state.
In Newark, the state’s largest city, eight applicants received the top tier of PPP loans: Bell Container Corp., Fabuwood Cabinetry Corp., Faps Inc., Gibbons P.C., K.S. Engineers P.C., OTG Management EWR LLC, Sills Cummis & Gross P.C. and Youth Consultation Service Inc.
In the news release announcing the PPP mega loans, U.S. Treasury Secretary Steven Mnuchin touted the program, citing job preservation and economic assistance for the businesses and organizations obtaining the funds.
“The PPP is providing much-needed relief to millions of American small businesses, supporting more than 51 million jobs and over 80 percent of all small business employees who are drivers of economic growth in our country,” Mnuchin said in a statement.
The SBA in its recent data divulge did not specify precise monetary amounts awarded to recipients. Instead, five ranges were offered, and the SBA revealed which band a grant recipient fell within.
The ranges included $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.
Several independent organizations and think tanks have been reviewing the data in recent weeks.
For example, auditors with Open the Books, a nonprofit organization focused on government transparency, compiled their findings into a searchable mapping tool, narrowing their focus on loans of $1 million or more.
Adam Andrzejewski, CEO and founder of Open the Books, said more than 83,000 loans between the $1 million and $10 million threshold were administered to businesses in more than 13,700 ZIP codes across the country.
“Not surprisingly, many firms and nonprofit organizations who signed up for a PPP loan will argue that the subsidies helped keep people employed when federal, state and local government literally closed down the economy,” Andrzejewski said in a statement.
While the U.S. Treasury and SBA have been touting the loans as important lifelines for small businesses across the country, some of the disbursements have raised eyebrows.
For example, Kanye West’s clothing and sneaker company – Calabasas, Calif.-based Yeezy LLC – netted between $2 million and $5 million in PPP funding. West, whose net worth reportedly is $1.3 billion, recently announced a presidential bid.
Andrzejewski in Open the Books’ analysis said 43,815 restaurants across the U.S. received between $13.6 billion and $32.7 billion in PPP funding, based on the information analyzed from the SBA.
Other big-picture findings, Andrzejewski said, reveal nationwide 31,559 dentists and physician offices obtained $9.9 billion to $24.3 billion in PPP funds. Additionally, 14,306 law offices received $5.3 billion to $12.8 billion in loans across the U.S.
published here with permission of The Center Square