Lenoir County businesses have been approved for 98,074,667 loans from the Paycheque Protection Program, the federal program backed by the Small Business Association designed to help businesses keep their workforce employed during the COVID-19 crisis.
the PPP loan data reflects only information provided by borrowers to their lenders, which includes the number of jobs retained.
According to information recently released by the SBA, businesses in Lenoir County have currently received 1,461 loans totaling $ 96,960,305, of which 4,935,592 of this balance remains to be disbursed.
Eleven Lenoir companies were approved for loan amounts greater than $ 1 million, eleven between $ 500,001 and $ 1,000,000 and 59 loans between $ 150,001 and $ 500,000.
The majority of loans (579) were between $ 10,001 and $ 25,000.
In total, 391 loans were less than $ 10,000.
Information on the PPP context
The Paycheck Protection Program grew out of the Coronavirus Aid, Relief, and Economic Security Act (CARES), a $ 350 billion program designed to provide small U.S. businesses with eight weeks of cash flow assistance. The program was then extended by the Paycheck Protection Program and the Health Care Enhancement Act in late April 2020, which added $ 310 billion in additional funding and gave businesses more time to spend the funds.
In December 2020, a second stimulus package was enacted, adding $ 285 billion in funding and updating eligible spending. He also opened a second PPP loan for businesses that used up their first loan and experienced a 25% or more drop in revenue.
At least 60% of PPP loans must be used to finance salary costs and benefits.
The remaining 40% can be spent on expenses such as mortgage interest payments, rent and lease payments, utilities, and operating expenses such as software and accounting needs.
If businesses meet the required guidelines, they will be eligible for 100% forgiveness of the loan, turning it into a tax-free grant.
PPP loans have an interest rate of 1%.
Loans issued before June 5, 2020 have a two-year maturity. Loans issued after June 5, 2020 have a term of five years.
Loan payments will be deferred for borrowers requesting loan forgiveness until the SBA remits the borrower’s loan forgiveness amount to the lender. If a borrower does not request a loan forgiveness, payments are deferred 10 months after the end of the borrower’s loan forgiveness period (between 8 and 24 weeks).
No personal guarantees or guarantees are required.
Neither the government nor the lenders will charge small businesses a fee.
The average loan amount is $ 100,000.
May 4, SBA announced that the PPP fund was almost cash-strapped.
Currently, the loan program only accepts applications through community financial institutions.
Lenior County PPP Loan Results
Data shows that a total of 81 companies in Kinston, eight in La Grange, three in Pink Hill, and one in Deep Run are borrowing money through the P3.
The Lenoir County construction industry received the highest 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 main borrowers among Lenoir’s sole proprietorships vary from restaurants to wholesalers.
Tands, Inc. (Famous Chicken ‘n Biscuits from Bojangles), received the most funding with $ 8,368,700.00
Other companies that received over $ 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 services, waste management and sanitation ($ 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 remission.
What is a loan forgiveness?
According to the SBA, the cancellation of PPP loans is granted to companies that have retained or rehired their employees while maintaining consistent salary levels since before the pandemic. However, if a business does not follow these guidelines, it may still qualify. For example, if a company’s sales have declined or the number of full-time employees has declined.
For a PPP loan to qualify for loan forgiveness, 60% (or more) of the loan must have been used to cover salary costs. The remaining 40% (or less) must have been spent on one of the following:
Damage to utilities or property (including damage caused by civil unrest; if you were not insured).
Worker protection expenses (including items such as sneeze guards and PPE).
Supplier costs on goods deemed essential to the business.
Eligible rent obligations or mortgage interest.
Operating costs (including items such as accounting and other management software).
How do companies get forgiveness?
According to the SBA, companies should contact their lender and send their application form to the financial institution that originally granted them the PPP loan.
Companies that have employees will be required to submit information such as salary and non-salary costs, adjustments for salary cuts, as well as possible PPP loan forgiveness amounts.
The initial deadline for submitting a PPP loan forgiveness request form is ten months from the end of the period covered.
It’s somewhere between 8 and 24 weeks. Due to this delay, businesses should make sure to submit their PPP loan forgiveness request to the lender promptly.
After submitting the pardon application form, they will have to wait some time to find out whether it has been approved or not.
If your PPP loan is completely canceled, you will not need to make any further payments on it.
If it is only partially forgiven (or maybe not at all), you will need to pay off the loan in full by the due date.
Loan Cancellation Results
According to statistics, the total loan forgiveness amount stands at 36,875,976 in Lenoir County.
County construction companies have had the most loans canceled 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 businesses in the county with over a million forgiveness loans.
Howard Management (1,037,742)
Arendell Parrott Academy Inc. (1,033,900)
41 companies received discounts on loans between $ 150,001 and $ 500,000.