Stark County businesses received $ 846 million in PPP loans
TOWNSHIP – The federal government distributed nearly $ 12 million Paycheque Protection Program Loans totaling $ 800 billion since the start of the pandemic.
This includes 9,908 loans worth $ 846 million to Stark County businesses and organizations, according to a USA TODAY Network / Canton Repository analysis.
County of Stark:Consult the PPP USA TODAY / Canton Repository database yourself
Stark’s manufacturing sector received the most money, with loans worth $ 158.6 million. Health care and social assistance followed at $ 144.7 million, and the construction industry came in third, receiving $ 104.4 million in loans.
Most of the loans, 1,434, went to a miscellaneous “other” category.
The top 100 loans, or the richest 1%, made up about 28.5% of the total money sent to the county.
Thirty-nine percent of loans ranged from $ 10,001 to $ 25,000 and 22% of loans were under $ 10,000. During this time, 128 loans were cleared for $ 1 million.
Who got the biggest loans from Stark?
The main recipients at $ 10 million each are the Alfred Nickles bakery in Navarre and the Schroer Group, based in the Canton of North, which operates pharmaceutical service companies, a food service business and an equipment buying group. health. Hilscher Clarke Enterprises, a Canton-based electrical subcontracting company, came in third with $ 8.47 million.
Nickles Bakery and the Schroer Group did not return a request for comment.
The Belden Brick Company, a Cantonese family business, was the county’s sixth-largest P3 recipient with $ 5.37 million.
Owner and CEO Brad Belden said that although the company’s five brick factories and four mining sites in Tuscarawas County have never been completely closed, there has been a major slowdown in production. which required 50 layoffs in the spring of last year. In 2020, Belden shipped fewer bricks than any year since 1949, he said.
“It was definitely a time of crisis to say the least,” Belden said.
The PPP loan enabled the company to avoid further layoffs, give workers a risk premium and recall dismissed workers after six weeks.
“It gave everyone relief,” Belden added. “Without that, there certainly could have been a lot more layoffs and business disruptions. “
The top 10 loan recipients said the loans – intended to support business wages, rents or mortgage payments, and utilities – helped support 4,235 jobs.
Consumers National Bank in Minerva has issued 1,554 PPP loans worth $ 114 million, 38% of which are in Stark County.
Ralph Lober, the bank’s president and chief executive officer, said staff members worked late into the night to process requests at the start of the program.
“It kept the panic from getting worse and the crisis from getting worse,” he said.
However, some critics of the program claim that it has helped large companies more than the small ones it was supposed to support.
Lober said preserving jobs, whether in small or large companies, was the only thing that mattered during the height of the crisis.
Loans have helped small businesses
Robin Johnson, 32, was one of the small entrepreneurs who benefited. He runs a home solar panel installation business in his garage on 19th Street NE in Canton.
Johnson received a COVID-19 economic disaster loan rather than a PPP loan, but it was part of the same series of programs that the Small Business Administration released in the spring of 2020 to support the struggling economy.
He used the nearly $ 10,000 he received to pay employees and buy new equipment.
“We were already slowed down in solar, but it has slowed down further with the pandemic,” Johnson said. “I really think (the loan) helped.”
Other skeptics say the program was ripe for fraud.
Canton man Randolph Nunn was indicted by federal prosecutors in early May in a scheme to fraudulently acquire $ 9 million in P3 funds.
Learn more about the fraud case:Cantonese among six accused of COVID relief fund fraud
Lober said there had been fraud, but “if there’s a business here or there that has money that it shouldn’t have had, I think it’s just a limit to what you can control when trying to do a bailout. “
He added that the second round of PPP funding that was released earlier this year comes with enhanced guarantees, including proof that the company’s revenues have fallen by at least 25% in one quarter.
Lober said Consumers National issued more loans in the second round than in the first round, but the amounts issued were much lower.
Six Stark County firms received the maximum amount, $ 2 million, in the second round: North Township construction firms Selinsky Force and Valentine; a franchisee of the North Canton Subway restaurant; The Hannon Electric Company; Saint-Luc Lutheran Community; and FoxHire, an HR software company in Jackson Township.
The loans were also made to non-profit organizations. The biggest P3 loan received by a nonprofit was the $ 3.1 that went to Malone University in the first round.
“I probably should have fired more people”
Cassandra Crowley, artistic director and executive of Canton Ballet, said that without a first-round PPP loan of $ 75,100 and a second-round loan of $ 76,400 that her organization had received, “I probably would have had to fire more than people ”.
Instead, Canton Ballet kept its six full-time employees on the payroll and maintained its regular programming throughout the pandemic.
Few sectors of the economy have been hit harder by the virus and the lockdowns that accompany it than restaurants and hospitality. Three in four restaurants in Ohio told the Ohio Restaurant Association in December 2020 that their sales were down at least 20% from 2019. One in four said sales were down between 50 and 70%.
Hartville Kitchen restaurant has had to close its dining room and gift shop, CEO Gary Sommers said. This has led to more than 100 layoffs at the family-style restaurant, he said.
The restaurant received a PPP loan of $ 1.2 million in April 2020 and a second loan of $ 1.6 million in March of this year.
Sommers said the business had little debt and deep roots in the community, so it never risked closing, but the loans “allowed us to move forward with more confidence by bringing everyone back. those that we could possibly recover “.
Contact Alexander at 330-580-8342 or [email protected].
On Twitter @AlMThompson
Want to know who received Paycheck Protection Program Loans in County Stark? Consult the searchable database created by the USA TODAY network at https://data.cantonrep.com/paycheck-protection-program-loans/.