PPP Loans Benefited Chicago Businesses

Chicago IL

21 July, 2021

4:07 PM

Description

CHICAGO, IL — Applications for the federal Paycheck Protection Program have closed after benefiting more than 11.8 million pandemic-stricken businesses, including many in Chicago. The Paycheck Protection Program started in April 2020 as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES), and was extended until May 31, 2021. There were 435,736 PPP loans approved in Illinois in 2021 alone, according to the Small Business Administration. The total 2021 amount approved was 15,328,824,895. Loan applications were processed through banks and other traditional lenders, with the SBA backing the resulting loans. Around $800 billion in loans were approved nationwide under the program. The loans are forgivable if borrowers meet certain criteria, including spending at least 60 percent of the money on payroll costs and maintaining employee compensation levels. Below are some Chicago businesses that benefited from the program according to the SBA. Check here for a full, searchable database. LUTHERAN SOCIAL SERVICES OF ILLINOIS Des Plaines, IL, 60018 Approval amount: $9,985,367 Jobs reported: 500 Forgiveness amount: $10,101,586 INSTITUTE OF GAS TECHNOLOGY Des Plaines, IL, 60018 Approval amount: $8,548,767 Jobs reported: 410 LORIG CONSTRUCTION COMPANY Des Plaines, IL, 60018 Approval amount: $7,403,982 Jobs reported: 374 Forgiveness amount: $7,485,324 DENK & ROCHE BUILDERS, INC. Bensenville, IL, 60106 Approval amount: $6,840,382 Jobs reported: 228 Forgiveness amount: $6,920,376 SVANACO, INC. Des Plaines, IL, 60018 Approval amount: $6,287,000 Jobs reported: 385 Forgiveness amount: $6,360,523 SIGMA TRON INTERNATIONAL, INC. Elk Grove Village, IL, 60007 Approval amount: $6,282,973 Jobs reported: 500 STEINER ELECTRIC COMPANY Elk Grove Village, IL, 60007 Approval amount: $6,090,670 Jobs reported: 449 JUPITER ALUMINUM CORP. Des Plaines, IL, 60018 Approval amount: $5,799,700 Jobs reported: 424 Forgiveness amount: $5,868,820 LEC DELAWARE LLC Bensenville, IL, 60106 Approval amount: $5,678,700 Jobs reported: 446 SLOAN VALVE COMPANY Franklin Park, IL, 60131 Approval amount: $5,437,500 Jobs reported: 500 Forgiveness amount: $0 Nationally, the accommodation/food service industry received the largest share of loans in 2021, with 15 percent of the total. Around 87 percent of the loans approved in 2021 were for $50,000 or less, and they accounted for a third of the total approved amount. The average loan size was $42,000. The program wasn't without controversy. Banks tended to prioritize large, established businesses, according to a New York Times analysis. Congress raised fees for small loans in December to encourage lenders to make small business loans, and rules were changed in February to allow unprofitable solo businesses to qualify. Several large companies drew public ire after it was revealed that they took PPP loans instead of relying on traditional capital-raising activities. The outcry prompted the SBA to review all loan applications over $2 million and issue guidance that the program was intended for businesses that lacked access to other cash-raising methods. Editor's note: This list was automatically generated using data from the SBA for approved loans of $150,000 or more, although some loans ultimately were not made. Business owners can contact the SBA if information about a loan isn't correct. SBA data occasionally contains duplicate entries. Other feedback can be sent to [email protected].