PPP Loans Benefited Newport Businesses

Newport RI

21 July, 2021

9:59 AM

Description

NEWPORT, RI — Applications for the federal Paycheck Protection Program have closed after benefiting more than 11.8 million pandemic-stricken businesses, including many in Newport. 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 17,282 PPP loans approved in Rhode Island in 2021 alone, according to the Small Business Administration. The total 2021 amount approved was $1,000,161,994. 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 Newport businesses that benefited from the program according to the SBA. Check here for a full, searchable database. EAST BAY COMMUNITY ACTION PROGRAM Newport, RI, 02840 Approval amount: $3,983,937 Jobs reported: 459 Forgiveness amount: $4,029,016 PRESERVATION SOCIETY OF NEWPORT COUNTY Newport, RI, 02840 Approval amount: $2,568,046 Jobs reported: 245 GINRI ASSETS, LLC Newport, RI, 02840 Approval amount: $2,490,300 Jobs reported: 142 Forgiveness amount: $2,519,354 THE PRESERVATION SOCIETY OF NEWPORT COUNTY Newport, RI, 02840 Approval amount: $2,000,000 Jobs reported: 127 GINRI ASSETS LLC Newport, RI, 02840 Approval amount: $2,000,000 Jobs reported: 178 CASTLE HILL, INC. Newport, RI, 02840 Approval amount: $1,381,900 Jobs reported: 90 Forgiveness amount: $1,390,381 IDC INC. Newport, RI, 02840 Approval amount: $1,380,900 Jobs reported: 200 DELPHI-US, LLC Newport, RI, 02840 Approval amount: $1,340,700 Jobs reported: 48 Forgiveness amount: $1,355,356 PARK SOUTH HOTEL LLC Newport, RI, 02840 Approval amount: $1,291,894 Jobs reported: 124 BANNISTERS WHARF CO INC Newport, RI, 02840 Approval amount: $1,210,905 Jobs reported: 182 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].