Window Companies Among Those Cashing in on PPPJuly 27th, 2020 by Drew Vass
As part of the Coronavirus Aid, Relief, and Economic Security Act (CARES), the Paycheck Protection Program (PPP) offers small businesses opportunities for loan-based assistance to help with the payment of salaries and other business expenses. Implemented by the U.S. Small Business Administration (SBA) and supported by the Department of the Treasury, the program is primarily aimed at maintaining employment by providing businesses with funds to cover payroll costs and related benefits. SBA officials estimate that around 60 million companies fit the bill for 500 or fewer employees. In consultation with the Treasury Department, SBA released detailed loan-level data recently, detailing the program’s disbursements.
“The PPP is an indisputable success for small businesses, especially to the communities in which these employers serve as the main job creators,” said SBA administrator Jovita Carranza. “In three months, this Administration was able to act quickly to get funding into the hands of those who faced enormous obstacles as a result of the pandemic. Today’s data shows that small businesses of all types and across all industries benefited from this unprecedented program.”
Around 10.4% of PPP loans so far have gone to manufacturing, while 12.4% went to construction firms. In all, [DWM]’s editors counted 231 window companies on SBA’s list for those receiving $150,000 or more in support each. Some received as much as $5 to $10 million.
In addition to payroll, PPP funds can also be used to pay such things as interest on mortgages, rent and utilities, and, according to SBA guidelines, will be forgiven when used for those purposes. Meanwhile, the Paycheck Protection Program Flexibility Act (PPPFA), signed into law June 5, 2020, extended the program’s original eight-week repayment period to 24 weeks from the date of loan origination, or until December 31, 2020. There is one catch, however: forgiveness is based on employers keeping or rehiring employees while in some cases also maintaining salary levels.
There are signs that PPP measures are working—including among door and window companies, leading some to rehire. Pioneer Window Manufacturing in Roslyn Heights, N.Y., was approved for $5-$10 million in funding. According to SBA data, the company employs 251 people.
Wallside Windows, in Taylor, Mich., received $1-$2 million. In June, the company held what officials said was its “first ever” hiring fair. “We’re in need of good, quality employees,” said Todd Murphy, the company’s plant manager. “With all the talk now of people who are looking for jobs, there is work if you’re looking for a company where you might spend the next 20 years of your career,” Murphy said, adding that his company was looking for individuals who are “dependable, willing to learn and excited to be part of the manufacturing profession.” Just a month after its first event, on July 23, Wallside held a repeat.
Through the end of June, SBA officials reported a count of nearly 4.9 million loans associated with the program, averaging $107,000 a piece. The vast majority of loans (87%) were for less than $150,000. Nearly 70% of loans (3.3 million) were for $50,000 or less, making up for 11.2% of total funding. On the opposite end of the spectrum, more than 658,000 companies (13.5%) received more than $150,000—nearly 5,000 of which received more than $5 million each.
In all, more than 51 million jobs are associated with the program’s reach, SBA officials reported, making up as much as 84% of all small business employees. Those positions account for 72-96% of estimated small business payroll, they said. At the same time, only 27% of funds went to individuals labeled as low and moderate income, including up to 28% of the total U.S. population.