Largest employers in Illinois seized most of PPP Paycheck Protection COVID-19 loans

WASHINGTON – In Illinois, 12% of businesses and nonprofits receiving emergency relief loans from the federal COVID-19 paycheck protection program have gobbled up 74% of the money, according to analysis Newly released Sun-Times data.

PPP loans – which don’t have to be repaid if used according to the rules to keep workers on the payroll for a few months and pay overhead costs – were approved by Congress earlier this year at the following pandemic coronavirus infections triggering government shutdowns orders and economic collapse.

The PPP program was marketed by the Trump White House as a boost to small employers. New data released Tuesday shows the largest employers in Illinois and across the country received the lion’s share of the P3 money.

Last July, the Small Business Administration revealed general information on loans over $ 150,000 and refused to release details or information about small players.

The Center for Public Integrity, the Washington post and other news outlets filed a federal complaint under the Freedom of Information Act, and a judge ordered the SBA to release detailed files by December 1.

Applications for the PPP program closed in August. Businesses and nonprofits with headquarters in Illinois and operations in other states are included in the Illinois totals. Some employers have not survived even with P3 loans as the pandemic continues.

Congress is deadlocked on creating another round of PPP funding. On Tuesday, a bipartisan group of senators unveiled another COVID-19 relief measure; the plan includes money for more PPP loans.

Sun-Times analysis of SBA data covering 220,917 Illinois PPP loans for $ 22.7 billion found:

  • If you look at the gross number of applicants, 88% of the loans went to 193,545 employers who got $ 150,000 or less. Illinois PPP loans under $ 150,000 totaled $ 5.8 billion.
  • Looking at where the most money went, 74% of the loans went to 27,372 employers who raised over $ 150,000. Illinois PPP loans of more than $ 150,000 totaled $ 16.8 billion.
  • Although billed as an emergency rescue effort in a “small business” pandemic, larger employers requesting larger loans benefited the most.
  • The maximum loan amount was $ 10 million, and 36 Illinois employers were eligible for the highest benefit. These businesses and nonprofits include Andy Frain Services in Aurora; the American Academy of Pediatrics at Itasca; the Illinois Bone & Joint Institute in Chicago; and the Bradford Hammacher Group, Inc. in Niles.
  • The smallest loan was $ 56 to CNG Towing in Sauk Village.
  • A closer look at the $ 22.7 billion in total loans for Illinois-based businesses shows that the restaurant industry, a business sector among the hardest hit by pandemic restrictions, has withdrawn the most PPP program money.
  • Full-service restaurants led the way with $ 725 million in PPP loans, followed by law firms with $ 572 million; physicians (not counting mental health offices) with $ 492 million; plumbing, heating and air conditioning contractors with $ 477 million; and new car dealers with $ 475 million.
  • In Illinois, 80 colleges and universities received $ 67.6 million in P3 loans; some 574 elementary and secondary schools share $ 200 million.
  • Illinois religious organizations have taken out $ 340 million in PPP loans.

The Washington Post Analysis out of 5 million PPP loans nationwide, more than half of the money went to 5% of the beneficiaries. The Post also found that 600 companies, “including dozens of national chains,” received the maximum of $ 10 million.

The company that owns the Chicago Sun-Times received a PPP loan of $ 2,734,200.

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