Table of Contents
Lenoir County businesses have been approved for 98,074,667 in loans from the Paycheck Protection Program, the federal Small Business Association-backed program designed to help businesses keep their workforce employed during the COVID-19 crisis.
The PPP loan data reflects only the information borrowers provided to their lenders, which includes the number of jobs retained.
According to information recently released by the SBA, Lenoir County businesses have currently received 1,461 loans totaling $96,960,305 which 4,935,592 of that balance remains to be disbursed.
Eleven Lenoir businesses were approved for loan amounts exceeding $1 million, eleven between $500,001 and $1,000,000 and 59 loans between $150,001 and $500,000.
The majority of the loans (579) were between $10,001 and $25,000.
A total of 391 loans were for less than $10,000.
PPP background Info
The Paycheck Protection Program originated from the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $350-billion program intended to provide American small businesses with eight weeks of cash-flow assistance. The program was then expanded by the Paycheck Protection Program and Health Care Enhancement Act in late April 2020, which added an additional $310 billion in funding and allowed businesses more time to spend the funds.
In December 2020, a second stimulus package was signed into law adding $285 billion in funding and updating the eligible expenses. It also opened up a second PPP loan for businesses that depleted their first loan and have experienced a 25% or greater decrease in revenue.
At least 60 percent of PPP loans must be used to fund payroll and employee benefits costs.
The remaining 40 percent can be spent on expenses such as mortgage interest payments, rent and lease payments, utilities, and operations expenditures such as software and accounting needs.
If businesses meet the required guidelines, they will be eligible to have 100% of the loan forgiven, effectively turning it into a tax-free grant.
PPP loans have an interest rate of 1%.
Loans issued prior to June 5, 2020, have a maturity of two years. Loans issued after June 5, 2020, have a maturity of five years.
Loan payments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower’s loan forgiveness amount to the lender. If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (between 8 and 24 weeks).
No collateral or personal guarantees are required.
Neither the government nor lenders will charge small businesses any fees.
The average loan total is $100,000.
On May 4, the SBA announced the PPP fund had nearly run out of money.
Currently the loan program only accepts applications through community financial institutions.
Lenior County PPP loan results
The data shows that a total of 81 businesses in Kinston, eight in La Grange, three in Pink Hill, and one in Deep Run are borrowing money under the PPP.
Lenoir County’s construction industry received the largest dollar amount in PPP loans, with a total of $16,832,000 from 184 loans.
The Transportation and Warehousing industry received 91 PPP loans, for a total of $14,396,018 million.
Accommodation and Food Services were approved for 79 loans totaling $$12,902,601.
Other Lenoir industries approved for PPP loans are:
– Retail Trade: 113 loans, ($7,911,254)
– Agriculture, Forestry, Fishing and Hunting: 259 loans, ($7,571,264)
– Health Care and Social Assistance: 105 loans, ($7,520,687)
The top borrowers among individual Lenoir businesses varies from restaurants to wholesalers.
Tands, Inc. (Bojangles’ Famous Chicken ’n Biscuits), received the most funding with $8,368,700.00
Other businesses receiving more that $1 million in PPP loans were:
– Other Services (except Public Administration) ($7,254,797)
– Manufacturing ($6,429,304)
– Wholesale Trade ($4,684,613)
-Professional, Scientific, and Technical Services ($3,706,874)
-Administrative and Support and Waste Management and Remediation Services ($2,438,607)
– Real Estate Rental and Leasing ($1,262,607)
– Educational Services ($1,156,307)
According to the SBA, the Paycheck Protection Program (PPP) ended on May 31, 2021 but existing borrowers may be eligible for PPP loan forgiveness.
What is loan forgiveness?
According to the SBA, PPP loan forgiveness is given to businesses who have either kept or rehired their employees while also keeping salary levels consistent from before the pandemic. If a company does not meet these guidelines, however, they still might be able to qualify. For example, if a business’s sales went down or if full-time employee count decreased.
For a PPP loan to be considered for loan forgiveness, 60% (or more) of the loan must have been used to cover payroll costs. The other 40% (or less) must have been spent on any of the following:
Utilities or Property damage (including damage from civil unrest; if you weren’t insured).
Worker protection expenses (including things like sneeze guards and PPE).
Supplier costs on goods deemed essential for the business.
Qualifying rent obligations or mortgage interest.
Operating costs (including things like accounting and other business software).
How does companies get forgiven?
According to the SBA, companies must contact their lender and send their application form to the financial institution that initially gave them the PPP loan.
Businesses who have employees will have to submit information like payroll and nonpayroll costs, adjustments for salary reductions, along with possible PPP loan forgiveness amounts.
The initial deadline to send in a PPP loan forgiveness application form is ten months from the conclusion of the covered period.
This is somewhere between 8 and 24 weeks. Because of this deadline, businesses need to ensure they submit their PPP loan forgiveness application to the lender quickly.
After the submission of the forgiveness application form, they’ll have to wait some time to find out if it has been approved or not.
If your PPP loan is completely forgiven, you won’t need to make any further payments on it.
If it’s only partially forgiven (or perhaps not forgiven at all), you’ll need to pay the loan entirely before the maturity date.
Loan forgiveness results
According to statistics, the total sum amount of loan forgiveness totals 36,875,976 in Lenoir County.
Construction companies in the county had the most loans forgiven by an industry. Followed by Other Services (except Public Administration) and Retail Trade a
Foss Recycling has the highest loan forgiveness amount in the county, totaling 2,555,956.
There were only two companies in the county with forgiveness loans of over 1 million.
Howard Management (1,037,742)
Arendell Parrott Academy Inc. (1,033,090)
41 companies received forgiveness on loans between $150,001 and $500,000.