PPP loan data gives glimpse at spread of COVID-19 economic damage in North Carolina

The U.S. Small Business Administration released long-awaited data Monday disclosing the names of the largest recipients of Paycheck Protection Program loans — specifically naming companies and nonprofits that received more than $150,000.

The SBA also released some information about the companies that have received PPP loans of under $150,000, including ZIP code, industry, and number of jobs retained. It did not include names of those companies.

Designed at the onset of the COVID-19 pandemic, the Paycheck Protection Program was designed as a lifeline for many small businesses that were hit hard by the coronavirus.

The program, which is run by the SBA, allows companies and nonprofits with fewer than 500 workers to get a low-interest loan to cover up to two months of payroll and expenses like rent and utilities. If the loan is used to retain workers and the company doesn’t cut wages, it turns into a grant — an alluring prospect given that most other relief and deferments add to a company’s debt.

The program had a rough roll-out in its earliest days, quickly running out of money. Many companies complained they were shut out of the earliest rounds of PPP money, as banks struggled to originate loans at first. While the program was run by the SBA, the government tasked banks with processing the loans and funneling the money to companies.

Ten banks in North Carolina were responsible for 60% of the PPP loans over $150,000 accepted so far. The largest lenders were Truist, which used to be BB&T and SunTrust (3,073 loans); First Citizens Bank (1,802); Pinnacle Bank (834); PNC Bank (722); and FNB Bank (703).

Over the weekend, President Donald Trump signed legislation extending the PPP deadline for small business owners. According to The Washington Post, $150 billion remains in the fund.

The data from the SBA show that in North Carolina, nearly 122,000 loans were completed as of June 30. Altogether, the loans were worth more than $12.4 billion.

More than 16,300 companies in the state received loans of more than $150,000, according to the SBA, and 105,590 companies in North Carolina received loans of less than $150,000.

Of the larger loans, 60% were between $150,000 and $350,000. One hundred companies received loans of $5 million to $10 million.

The largest number of loans over $150,000 — 2,267 — went to businesses in the city of Charlotte.

But about a quarter of all PPP loans went to companies in the Triangle, with 4,236 companies receiving loans over $150,000 located in Congressional Districts 2 and 4. Loans of less than $150,000 were granted to 25,926 businesses in those districts.

In Raleigh, 1,603 businesses received loans of more than $150,000, according to the SBA, and 8,089 businesses received loans smaller than $150,000.

In Durham, 603 businesses received loans worth more than $150,000, and 3,207 received loans under $150,000.

In Cary, 325 businesses received loans of more than $150,000, and 2,344 received loans smaller than $150,000

In Chapel Hill, 184 companies got loans larger than $150,000, and 1,207 got loans smaller than $150,000.

Some of the biggest recipients of PPP loans in Raleigh included student housing developer DP Preiss, construction material supplier Carolina Sunrock and consulting firm FMI Corp. In Durham, the recipients of the largest loans included Duke School, an independent prekindergarten through eighth grade school; EmergeOrtho, an orthopedic clinic; and Rho Inc., a clinical drug development company.

The data revealed how widespread the pandemic’s impact was on North Carolina’s economy, with wide variety of industries and organizations applying for help, from schools like William Peace University and nonprofit Food Bank of Eastern and Central North Carolina to real estate companies like Kane Realty and hotels like the Pinehurst Resort.

Construction companies and health care and social assistance companies received the largest number of loans over $150,000 of any industry. Many of the loans under $150,000, went to these industries, too, with a large number also going to accommodation and food services businesses. The names of companies that received the smaller loans were not made public.

According to the data, loans for under $150,000 retained 497,003 jobs and loans for over $150,000 retained 696,313 jobs.

Some $3.5 billion went to businesses in economically distressed areas. The SBA did not require companies receiving PPP to disclose demographic information, so it is unknown what share of the loans went to businesses owned by people of color or women.

News & Observer reporter David Raynor contributed to this story.