First Percent of Paycheck Protection Program Loans in North Carolina is One-Quarter of Total Loan Value
RALEIGH, NC (WNCN) – Jeff Scoras has applied for a loan of about $ 10,000 from the Federal Paycheck Protection Program to help keep five workers on his solar power company’s payroll. door to door at Apex.
He was shocked to see how much money was directly deposited into the account: $ 65.
“I was kind of like, ‘Really? Like, why even give me money? Scoras told CBS17.com. “Sixty-five dollars is hardly going to do anything for me. “
The federal government released more data this week on P3s loans designed to help small businesses continue to pay their workers after widespread shutdowns caused by the COVID-19 pandemic.
The details, released in response to a Freedom of Information Act request and lawsuit by nearly a dozen media outlets, included the specific dollar amounts of each loan and identified companies receiving loans under 150,000. $. These companies were not identified in the previous Small Business Administration data dump in July.
A CBS17.com study found that more than 127,000 North Carolina businesses were listed as having received loans totaling $ 12.1 billion, 87% of which – nearly 110,000 in total – for amounts less than $ 12.1 billion. $ 150,000.
But these loans represent only 30% of the total amount granted, or $ 3.7 billion.
The first percent of loans is about $ 3.2 billion, or more than a quarter of the total loan value. Half of the money went to just 4.5 percent of the beneficiaries.
On that list are companies like FastMed Urgent Care, Biscuitville, and Raleigh-based Golden Corral, which did not return a message seeking comment from CBS17.com.
The data also shows how many jobs would be kept with these loans, and Duke’s finance professor David Robinson said there was a strong correlation between the number of jobs kept and the size of the loans, large companies with more employees who frequently receive larger loans.
“To me that sounds like proof that the more money you borrow, the more jobs you keep,” he said.
A dozen North Carolina companies have been listed as receiving the maximum loan amount – $ 10 million – including five in the CBS 17 viewing area: EmergeOrtho PA in Durham, Spectraforce Technologies in Raleigh, JF Acquisition in Morrisville , FastMed to Clayton and Boddie-Noell Enterprises. LLC at Rocky Mount.
Of those, four said the maximum of 500 jobs would be kept. JF Acquisition did not list any retained positions and company representatives did not return a phone call from CBS17.com asking for an explanation.
On the other end of the spectrum, 15 companies were listed as having received loans under $ 100.
This includes Scoras’ company, Sunstream Solar. He said there were only two employees left, both of whom have other full-time jobs. He had hoped to use a loan between $ 10,000 and $ 12,000 to keep the other three employees and generate leads for the company.
“Kind of like a slap in the face,” he said.