Most of the PPP loans went to larger Kentucky companies



At least 48,370 Kentucky businesses have received cash loans to deal with the coronavirus pandemic under the federal paycheck protection program, according to data released by the US Small Business Association, but 73% of the money is went to only 13% of these companies.

Until June 30, Kentucky companies had received $ 5.2 billion in loans, but only about 27% of that money went to the 41,932 companies that received loans under $ 150,000.

Instead, 73 percent of the money went to 6,438 businesses that received more than $ 150,000, including 53 businesses across the state that raised loans between $ 5 million and $ 10 million. About 60 percent of the 599,372 Kentucky jobs protected by the program were with companies that received loans over $ 150,000.

The SBA has released the names of companies that have received loans greater than $ 150,000, but has not released the exact size of their loans.

Among them are Wendy’s of Bowling Green, Ramaco Resources (which has no active mines in Kentucky), the National Tobacco Company, the Roman Catholic Diocese of Lexington and the Diocese of Covington.

There were 429 nonprofits that received loans over $ 150,000, including nine that got over $ 5 million. Several of the nonprofits were religion-based, including Crosswater Canyon, which is a nonprofit entity intended to support the Ark Encounter Museum in northern Kentucky. He received a loan of between $ 1 million and $ 2 million. Other notable nonprofits include the Speed ​​Art Museum, Center College, Georgetown College, and Asbury University.

In Lexington, five companies have received loans of more than $ 5 million – Blue Diamond Mining, Ramaco Resources, Rhino Energy, the Roman Catholic Diocese of Lexington and S&S Firestone. There were 22 companies in Lexington that received loans between $ 2 million and $ 5 million, a list that included Ball Homes, Don Jacobs Imports, McBrayer, Kentucky Eagle, Transylvania University, Paul Miller Ford, and Stoll Keenon Ogden.

At least $ 69 million went to Lexington companies that received loans over $ 2 million. Statewide, a low of $ 775 million went to businesses that received loans greater than $ 2 million, or about 14% of the total for all businesses in Kentucky. These companies said the loans protected about 359,886 jobs, or 12% of all jobs protected by the loan program.

The PPP loan program was intended to help keep small businesses afloat during the pandemic. This is a 1% interest loan that is forgiven by the federal government if 75% of the money is used for payroll and the company does not lay off or reduce employee wages. Congress initially set aside $ 349 billion for the program, an amount that was swallowed up so quickly that many small businesses were not immediately able to secure loans. Congress later approved an additional $ 310 billion.

Of loans over $ 2 million, about 85% were approved in the first round of loans. Of loans below $ 150,000, only 44% were approved in the first round, according to a Herald-Leader data analysis.

The SBA has not disclosed the names of businesses that have received loans under $ 150,000, making it impossible to know which small businesses have been helped.

Most companies reported how many jobs they had saved by receiving their loans, as well as whether they were minority or veteran owned. Only 14 companies that received a loan of more than $ 150,000 reported being black or African-American. None of them were in Lexington. Of the companies that received more than $ 5 million, only one specified their race – whites.

About 5 percent of businesses that received more than $ 150,000 reported being owned by women. No business owned by women has received more than $ 5 million.

Of the businesses that received less than $ 150,000, only 90 reported having a Black or African American owner. About 6 percent were owned by a woman and 254 reported belonging to a veteran.


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