Since the federal government’s Paycheck Protection Program rolled out in April to help businesses stabilize during the COVID-19 pandemic, more than $520 billion in loans has been given out to help keep workers on payrolls.
Businesses apply through banks for loans that range from less than $150,000 up to as much as $10 million. Nationwide about 4.8 million loans have gone out from 5,460 lenders for an average of about $106,542 according to data kept by the Small Business Administration.
In Iowa, almost 6,000 loans went out to businesses from banks based on analysis from Iowa Capital Dispatch, which found that West Des Moines businesses received the largest number of loans over $150,000.
For Mason City, 69 area businesses got $150,000 or more from the Paycheck Protection Program for a grand total between $26.15 million and $64 million (the SBA data only has ranges, not exact amounts). All together, those businesses employ nearly 3,900 workers.
Of those 69, four businesses or organizations in Mason City received between $2 million and $5 million: Good Shepherd Health Center (319 workers), the Mason City Clinic (250 workers), Stoney Creek Hospitality which runs the Historic Park Inn (500 workers), and Woodharbor Custom Cabinetry (217 workers). Stoney Creek went through Clear Lake Bank and Trust while the other three used NSB Bank.
Five businesses or organizations in Mason City got between $1-2 million in PPP funding: Heartland Asphalt (88 workers), Henkel Construction (104 workers), Metalcraft (115 workers), Nutriquest (45 workers) and WHKS (103 workers). Three of those, Heartland, Henkel and WHKS are in the construction and design industry while Metalcraft is in the tech sector and Nutriquest is involved in the agriculture industry.
In a tier below that, $350,000 to $1 million, 20 businesses or organizations received PPP funding: Blazek Electric, Brakke Implement, Central Park Dentistry, Charlie Brown Community Daycare, Dental Center of North Iowa, Golden Grain, the Heiny Law Firm, Hosmer Cars, Huber Supply, Iowa Odd Fellows Home, Kabrick Distributing, Mason City Motor Company, the Nettleton Dental Group, Newman Catholic, North Iowa Anesthesia Associates, North Iowa Eye Clinic, North Iowa Transition Center, Prairie Ridge, Radiologists of North Iowa and TGM Pizza. Based on employment, TGM Pizza (which oversees the Mason City Dominos) is the largest with 185 workers, but not all of them are in the area.
The remaining 40 businesses and organizations were in the $150,000 to $350,000 range and include such businesses as Hogan-Bremer-Moore Colonial Chapel, Las Palmas, Schukei Chevrolet and Turning Leaf Counseling.
“It was really vital otherwise we would not have made it through without those funds to help us offset the loss,” Turning Leaf Executive Director Cody Williams said. “Without we would’ve been financially burdened quite a bit.”
According to Williams, Turning Leaf received $200,000 in PPP funds through Clear Lake Bank and Trust. He said that the application process itself was relatively smooth and that the money went to salary to keep people on the payroll. With the pandemic disrupting the way Turning Leaf previously did consultations, Williams said the organization has had to use more teleheath services.
“We’re still taking patients and looking for different ways to try and serve as many people as we can.”
Significantly more businesses in Mason City received less than $150,000 but the SBA has refused to release details on loans under that amount which is the vast majority of borrowers.
Mason City businesses and organizations that did not receive any money from the SBA were able to put in for state bailout money through the Iowa Economic Development Authority or local money through the “Small Business Recovery & Continuity Fund.” More than 50 area businesses took in state money while 119 took in local money.
Despite such funding, unemployment claims in Cerro Gordo County topped 4,000 which was the highest total in more than 20 years. North Iowa Corridor Economic Development Corporation President Chad Schreck said during a press conference on Wednesday that the numbers have since dipped below 10% but that’s still not in line with pre-pandemic levels.
When asked about PPP, Schreck said that such funds are “critical” to maintaining business at this time.
“We’ve heard from many that they wouldn’t be able to stay open without some of those funds because a lot of them had those revenue streams cut off,” he said. “At the very least, it provided a level of security.”
More than $130 billion still exists in the fund which President Donald Trump extended through August 8 which means businesses can still apply for funding. Throughout the course of its brief, the program has been the subject of immense scrutiny as a number of publicly traded companies have been able to receive the max amount of $10 million. In addition, almost 90,000 employers took in money without even saying how many jobs they would be protecting (as the Washington Post reported this week).
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