YOUNGSTOWN, Ohio – From iconic Mahoning Valley businesses to one-person endeavors, Paycheck Protection Program loans reached a huge and diverse range of companies in the area.
In total, 6,165 businesses in Mahoning, Trumbull and Columbiana counties received loans from the program, according to data released Dec. 1 by the U.S. Small Business Administration.
Loans in the three counties totaled $789,236,381 and affected 91,312 jobs.
The median loan was $31,103, although the value of loans awarded ran the gamut. Two businesses received the maximum amount of $10 million and 22 businesses got loans under $1,000.
The smallest amount awarded was $100 to Richard S. Miller, while AVI Foodsystems and Schwebel Baking Co. each received $10 million loans. In addition, two Schwebel sister companies also received funds: Schwebel Baking Co. of PA got $1,767,000 and Schwebel Baking Co. of NY got $542,200.
Rounding out the top 10 after AVI and Schwebel are:
• Empowering People Management of Warren, $8,467,300.
• Simon Roofing and Sheet Metal Corp. of Boardman, $8,389,600.
• CAD Capital LLC of Warren, $7,05,422.
• Dalcan LLC of Warren, $6,499,730.
• Cadle LLC of Warren, $6,305,660.
• HBK Professional LLC of Canfield, $6,102,700.
• Butech Bliss of Salem, $5,089,800.
• Covelli Family Limited Partnership II of Warren, $5,079,675.
CAD Capital, Dalcan, Cadle and Covelli Family Limited Partnership are all listed with the same address as the headquarters of Covelli Enterprises, as are 13 other entities. On filing documents, 15 of the entities list as agents people who were leaders at Covelli businesses at the time of their filing. The exceptions are FK Sodo LLC, FK Lake Mary LLC and FK Waterford LLC, which the Ohio Secretary of State does not have on file. Combined, the 17 Covelli entities received $43,389,740.
Under PPP guidelines, restaurant franchisees were allowed to count each restaurant location as an individual entity, ensuring that large franchisees were able to access funds needed to stay open. None of the Covelli-related companies approached the threshold of $10 million, although eight reported the maximum threshold of 500 employees.
Full disclosure: The Youngstown Publishing Co., which operates The Business Journal, received $137,000 and retained all 19 employees.
With the data also including dates PPP loans were approved, it’s easy to see the chaos of the program’s early days. Early on, when uncertainty over the pandemic and its effects were perhaps at their peak, it was a mad scramble by businesses and their advisers to get applications into the SBA.
Locally, just six PPP loans were accepted on the first day applications could be submitted – April 3.
That number continued to rise exponentially: 20 on April 4, 41 on April 5, 101 on April 6 and 188 on April 7. The daily total rose the remainder of that week, before dipping slightly the weekend of April 11 and 12, only to continue rising on April 13.
The peak came April 16, when 509 applications were submitted. That was the final day before funding for the first phase of the Paycheck Protection Program ran out, with $349 billion in loans approved nationwide.
In the tri-county area, first-round lending totaled $577,927,180.89 to 2,541 businesses.
The second phase of the PPP never exhausted its allotment before applications closed Aug. 8. In August, $3,137,101.62 was lent to 96 area companies, including six on the final day.
PPP loans can be fully forgiven if the business maintains its prepandemic employment after an eight- or 24-week period. As of Dec. 1, according to the SBA, 595,000 forgiveness applications had been submitted nationwide, with more than 367,000 approvals for either full or partial forgiveness. Lenders have 60 days to review applications before sending them on to the SBA, which in turn has 90 days to approve or deny forgiveness.In total, 155 banks processed Paycheck Protection loans for local businesses. Huntington National Bank led lending across Mahoning, Trumbull and Columbiana counties with $185,859,118.27 lent to 1,225 businesses. Following was Farmers National Bank with $89,765,540.50 lent to 925 businesses.