Which San Jose Industries Received The Most PPP Money?

Campbell CA

21 July, 2021

2:22 PM

Description

By Tran Nguyen, San Jose Spotlight July 20, 2021 San Jose businesses received more than $2.3 billion in federal funding to keep workers on the job during the COVID-19 pandemic. The Small Business Administration (SBA) approved more than 11.8 million loans through three rounds of Paycheck Protection Program applications, with California having the most loan money approved out of any state, according to federal data. San Jose received the most PPP money in Santa Clara County, with almost 25,000 approved applications, an analysis by San José Spotlight shows. "The PPP has been lifesaving," said Scott Knies, director of the San Jose Downtown Association. "Our members were very grateful for it (because) a lot of their businesses just went 'poof' during the pandemic." Three businesses received $10 million in loans to retain a combined 1,324 employees: United Mechanical, an HVAC company; Quantum Corporation, a data storage company; and Velodyne Lidar, a laser sensors company. The federal program forgave the loans to United Mechanical and Velodyne Lidar at the end of June. United Mechanical and Quantum Corporation did not respond to San José Spotlight's requests for comment. Velodyne Lidar declined to comment. Approximately 330 applications in San Jose received more than $1 million in loans, data shows. Many businesses applied for paycheck protection more than once, according to the analysis. In one case, a local Panera Bread franchisee received roughly $5 million through two applications. Restaurants accounted for the largest percentage of approved dollars at $132 million, about 5.6% of the total amount of loans given to all San Jose businesses. Dental clinics came in at a distant second, with a total of $64 million in loan money. Other industries hit hard by shutdown orders, such as hotels, did not make the top 10 list. "If you look at our downtown, there are 200 places to eat, but we have six or seven hotels," Knies said. "Other industries (on the list) employ a lot of people, and that was a criteria for the loans." As of July 1, the SBA has forgiven a total of $1 billion in loans to San Jose businesses, according to the data. About a quarter of a million San Jose employees retained their jobs because of paycheck protection funding. Here's a look at the 10 industries that received the most PPP assistance in San Jose: Full-service restaurants Total amount: $132,239,071 Average loan: $133,710 Number of loans approved: 989 Top 3 loans: O.M., Inc. (owner of the local chain Aqui restaurants): $4 million Luna Mexican Kitchen: $3.4 million Pangenera, LLC (a Panera Bread franchisee): $2 million Dental clinics Total amount: $64,103,646 Average loan: $67,978 Number of approved loans: 943 Top 3 loans: Dalvir Pannu, D.D.S, Inc.: $592,400 Innovative Dental of Silicon Valley: $439,500 Phelps & Cohen Orthodontics: $816,580 Computer programming services Total amount: $57,478,334 Average loan: $226,293 Number of loans approved: 254 Top 3 loans: Photon Infotech Inc.: $7,110,345 Flexton Inc.: $2,675,000 InterraIT, Inc.: $2,240,000 Plumbing, heating, and air-conditioning contractors Total amount: $51,586,358 Average loan: $255,378 Number of approved loans: 202 Top 3 loans: United Mechanical: $10 million ICOM Mechanical: $5,025,705 All Temperature Service: $1,884,483 Law offices Total amount: $51,448,919 Average loan: $90,899 Number of approved loans: 566 Top 3 loans: Hopkins & Carley: $4,394,000 Berliner Cohen LLP: $1,618,200 Law Foundation of Silicon Valley: $1,444,504 Limited service restaurants (to-go) Total amount: $50,353,751 Average loan: $109,943 Number of approved loans: 458 Top 3 loans: Cam-Bas Inc (McDonald's franchise): $4,458,700 Pangenera, LLC (Panera Bread franchise): $2,967,090 Henley Restaurants (McDonald's franchise): $1,905,500 Computer systems design services Total amount: $50,088,900 Average loan: $265,021 Number of approved loans: 189 Top 3 loans: Red Oak Technologies: $3,044,347 T3C Inc.: $2,925,162 Jade Global: $2.913,331 Engineering Total amount: $45,008,037 Average loan: $255,727 Number of approved loans: 176 Top 3 loans: Ryzen Solutions: $6,423,010 Structural Integrity Associates: $4,570,300 Mark Thomas: $4,042,600 Electrical contractors and other wiring installation contractors Total amount: $42,455,998 Average loan: $244,000 Number of loans approved: 174 Top 3 loans: CH Reynolds Electric: $5,088,648 New Age Electric: $4,052,495 RFI Communications & Security Systems: $3,202,400 Offices of physicians (except mental health services) Total amount: $37,675,348 Average loan: $80,160 Number of approved loans: 470 Top 3 loans: NMCI Medical Clinic: $2,369,472 Action Urgent Care: $1,952,961 San Jose Medical Clinic: $1,898,744 Contact Tran Nguyen at [email protected] or follow @nguyenntrann on Twitter. San José Spotlight is the city's first nonprofit news organization dedicated to independent political and business reporting. Please support our public service journalism by clicking here.