93 companies in the area get PPP loans
Over 1,500 jobs saved in Liberty, Girard and Hubbard
At least 93 businesses in the Girard, Hubbard and Hubbard Township, and Liberty corridor in southern Trumbull County took advantage of the Paycheck Protection Program for loans of $150,000 to $5 million, saving thousands of jobs, according to federal loan data.
Released earlier this month by the U.S. Small Business Administration, the information on the program, meant to incentivize businesses to keep people working amid the viral outbreak, shows most of the loans — 45 — were in the $150,000 to $300,000 range.
The data also shows:
● Three loans were $2 million to $5 million;
● 12 loans were in the $1 million to $2 million range; and
● 23 loans were between $350,000 and $1 million.
No company in the corridor received a loan in the highest range — $5 million to $10 million.
The data was reviewed by ZIP code area — 44420 for Hubbard and Hubbard Township, 44425 for Girard and 44420, 44425 and 44505, the three predominant ZIP codes for Liberty, so some overlap exists. There was some duplication with Youngstown, too, because part of it is in the 44505 ZIP code.
VEC Inc., a construction firm in the oil, gas and electric industries on Tibbetts Wick Road, received a $2 million to $5 million loan to preserve 144 jobs, according to the U.S. SBA data.
The money helped the company overcome slow first and second quarters and the shutdown of a couple projects deemed nonessential under Ohio’s expired stay-at-home edict. Like many construction firms, the first quarter is slow, but the outbreak clamped down on business in the second, which is normally when work starts to accelerate.
Applying was an easy decision, said owner and CEO Rex Ferry, after sorting through early confusion on qualifications and forgiveness.
“When they made the announcement back in March, we looked at it as an opportunity to take advantage of something that everybody else was … Rachel (Barber, executive vice president of finance) and I discussed it and I said, ‘Rachel, let’s at least try, they are saying they are going to forgive it,'” Ferry said.
It would have been foolish not to apply, Ferry said, adding “worst-case scenario, if it isn’t forgiven, we’ll just pay it back. That’s all.”
Barber said she was told by VEC’s lender companies that received loans of at least $2 million that seek forgiveness would be audited. That shouldn’t happen before August, however. In the meantime, Barber said, she has been keeping tight control on payroll and other records to prepare for the audit and forgiveness process.
“We here internally are audited every year through our outside accounting firm, so we’re accustomed to a good, hefty audit … everything has been coded and tracked and we just await our time for the audit and the forgiveness process,” Barber said.
Also in the $2 million to $5 million range was Circle Rehabilitation Physical Therapy Inc. on Belmont Avenue. It retained 40 jobs.
Companies that received $1 million to $2 million included A.P. O’Horo Co., zero jobs listed; Aim Leasing Co., 124 jobs; Columbiana Foods Inc., 330 jobs; Gasser Chair Co. Inc., 146 jobs; MVI Inc., 115 jobs; New Leaf Residential Services Inc., 345 jobs; Patriot Home Care Inc., 76 jobs; Psycare Inc., 121 jobs; and Warren Fabricating Corp., 100 jobs.
Two companies had addresses registered as 7845 Chestnut Ridge Road — Warren Fabricating Corp. and Ohio Steel Sheet and Plate. Warren Fabricating received a $1 million to $2 million loan to keep 100 people working; and Ohio Steel, $350,000 to $1 million to retain 26 jobs.
In addition, two businesses at 7041 Truck World Blvd. — Quadland Corp. and Tewel Corp. — received loans of $150,000 to $350,000. Quadland listed 49 jobs were saved. For Tewel, the jobs retained category was blank.
Also, two companies registered at 700 Dot St., Girard Machine Co. Inc., and Girard Machine Sales Inc., received loans to save a combined 39 jobs. Girard Machine Co. received a loan of $350,000 to $1 million and Girard Machine Sales, $150,000 to $350,000.
Two nonprofit organizations in the corridor also received funding. Youngstown Area Goodwill on Belmont Avenue received a $350,000 to $1 million loan to retain 251 jobs and St. Rose Church on East Main Street received $150,000 to $350,000 for 45 jobs saved.
The government disclosed business names, addresses, ZIP codes, business type, demographic data, nonprofit information, name of lender, jobs supported and loan amounts. Disclosures did not include specific dollar amounts, but amount ranges: $150,000 to $350,000; $350,000 to $1 million; $1 million to $2 million; $2 million to $5 million; and $5 million to $10 million.
Also disclosed was less-detailed information on companies that received loans of up to $150,000.
The primary incentive for companies to seek loans is the offer of forgiveness if most of the money — originally 75 percent but later revised to 60 percent — is used for payroll. Businesses can borrow up to $10 million based on their payroll costs; the loans carry a 1 percent interest rate and deferred payments for six months. Owners also can use the money for rent, mortgage interest and insurance. If businesses cut jobs or employees’ pay, they’d have to repay some of the money.
The Associated Press contributed to this story.