Loans – Massive companies profit extra from PPP loans than small ‘mom and pops’
JACKSONVILLE, Fla. – With enterprise down virtually throughout the board due to the continued coronavirus pandemic, native firms are counting on authorities PPP loans to maintain them going.
This week, the U.S. authorities launched knowledge exhibiting who bought that assist and the way a lot every recipient took in, together with eating places, shops and companies in Northeast Florida.
Shortly after seeing the info, Florida Republican Sen. Rick Scott claimed it hasn’t been an excellent distribution.
“What do we need to do?” he stated in a radio interview. “Help the people that lost their jobs, help our small businesses, make sure our schools get open.”
Scott complained that almost all of the cash is bailing out big companies as a substitute of supporting small companies. He’s pushing an modification that may solely assist firms that may show a considerable discount in income from COVID-19.
As of now, greater than 50% of the funding nationally went to only 5% of those that obtained funding. The treasury secretary stated extra assist could possibly be on the best way.
“There are things like PPP that, in my opinion, there’s $140 billion sitting in the general fund, ready to go out,” stated Steven Mnuchin.
The I-TEAM has analyzed authorities paperwork exhibiting that greater than 32,000 companies have gotten federal assist in Northeast Florida; 14,000 within the metropolis of Jacksonville alone.
And crunching the numbers, huge companies look like benefiting greater than the native small mom-and-pop operations.
Three firms bought loans of $10 million:
- Nextran Company, which sells and companies semi-trucks
- Stein Mart, which went out of enterprise, however was simply bought by the proprietor of Pier 1
- SNI Corporations, a staffing company
There are two associated firms that bought greater than $10 million if the loans are mixed. TLC Central LLC ($7,462,300) and TLC West ($7,123,900) are a part of the TL Cannon Corporations, homeowners of Applebee’s franchises nationwide. They listing a Ponte Vedra handle. Information present the corporate’s restaurant operations are headquartered in New York, however their administrative/monetary workplaces are in St. Johns County.
Nonetheless, the median loan quantity in Northeast Florida is $21,207, a a lot smaller piece of the pie.
Serving up superior spuds, the homeowners of Mr. Potato Unfold in Regency Sq. Mall haven’t stopped serving because the pandemic.
“We’re just depending on the help of people coming and buying and supporting us,” stated co-owner Aaron Spann, who additionally runs a meals truck by the identical title.
And whereas gross sales are down as a result of individuals are staying house extra, they’re filling within the gaps with a federal PPP loan: $27,000 to maintain eight workers on workers.
“Loans are at all times good,” Spann stated. “Anything that can help.”
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