Iredell County businesses received more than $121 million in Paycheck Protection Program loans according to data released from the U.S. government’s Small Business Administration.
In total, the loans went to at least 332 businesses, which represent at least 15,244 employees on their respective payrolls.
Structure Medical out of Mooresville was the only local business to receive a PPP loan in the $5 to $10 million range while the affiliates of the Randy Marion Automotive Group received at least $4.8 million from their six different businesses in the county. Structure Medical supports 333 workers according to the filing while Randy Marion’s six locations in Iredell had 525 workers listed.
In the case of Randy Marion, they’ve been able to use the loans to keep their employees on the job, according to a statement from the company.
“Like many businesses, our family of dealerships applied for the Payroll Protection low-interest loan to help retain our employees during these unusual times. Due in large part to this loan, we are happy to say that not a single employee at any Randy Marion dealership was laid off, furloughed, or fired due to the COVID-19 pandemic,” the statement said.
The state of North Carolina ranked 10th in PPP loans with 121,913 loans with at least $5.828 billion being loaned to companies in the state. The SBA only provides ranges for each company’s loan, so the estimate of how much money the county and state’s businesses took in as part of the program is on the conservative side.
The government’s idea be-
hind PPP loans is to keep employees on the payroll as the coronavirus pandemic continues, but the $349 billion the federal government originally set aside for the program was gone more quickly than many businesses could apply for the relief. Some publicly traded companies were able to get loans while small businesses were shut out.
President Donald Trump extended the program recently with the current period for applying started on July 6 and continues until Aug. 8.
According to ProPublica, more than 4.8 million loans have been approved of up to $659 billion. At least 661,218 organizations were approved for loans between $150,000 and $10 million.
While the government released information on loans of more than $150,000, no information is planned to be released for loans under that amount, which makes up a significant portion of the loans taken out.
According to the federal government’s SBA’s website, the Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time head count declines, or if salaries and wages decrease. But there are some exceptions to those rules.
The SBA says the loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities but due to likely high subscription, at least 60% of the forgiven amount must have been used for payroll.
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