Loan program keeps workers employed
Funds keep 450 on job at Boardman roofing company
For a list of businesses with Austintown ZIP codes that received a loan from the Paycheck Protection Program, click here.
For a list of businesses with Boardman ZIP codes that received a loan from the Paycheck Protection Program, click here.
For a list of businesses with Canfield ZIP codes that receiv-ed a loan from the Paycheck Protection Program, click here.
EDITOR’S NOTE: The Vindicator will continue to examine which local companies received loans from the Paycheck Protection Program. Read the print edition of the The Vindicator or online at www.vindy.com on Sundays for the stories.
Simply said, “a godsend.”
It’s what Alex Simon, owner of Simon Roofing and Sheet Metal in Boardman, said about the company’s $5 million to $10 million Paycheck Protection Program loan that enabled him to keep his 300 hourly and 150 salaried employees working during the economic turmoil brought on by the COVID-19 outbreak.
“It was a godsend,” Simon said. “Not just for us, but for most companies because it enabled us to keep our workers going.”
This loan was the only one in the range, the greatest amount possible in the federal program, within the 44512 ZIP code area, which is encompasses a large part of Boardman and neighboring Youngstown.
Data from the U.S. Small Business Administration released this month –reviewed by ZIP code by The Vindicator — shows within 44512 there were 128 loans. Excluding Simon Roofing’s loan, there were six in the $2 million to $5 million range; three in the $1 million to $2 million range; 48 in the $350,000 to $1 million range; and 70 in the $150,000 to $350,000 range.
Within the Austintown, Boardman and Canfield corridor along U.S. Route 224 in central Mahoning County, searching 44515, 44406 and 44512 ZIP codes, there were 273 loans. The breakdown: two loans of $5 million to $10 million; 10 loans of $2 million to $5 million; 16 loans of $1 million to $2 million; 92 loans of $350,000 to $1 million; and 153 loans of $150,000 to $350,000.
A search of the 44515 ZIP code area, which encompasses most of Austintown, shows 67 loans granted, but none in the highest range of $5 million to $10 million.
Three loans, however, were in the $2 million to $5 million range. And two of those were awarded to nonprofit organizations: Gateways to Better Living on Mahoning Avenue, which saved 447 jobs, and Shepherd of the Valley Lutheran Retirement Services, Inc., to retain 249 jobs.
The third company was Hynes Industries on Henricks Road, which reported keeping 199 jobs. Two other businesses registered to Hynes Industries’ address, 3805 Henricks Road, also received loans. American Roll Form Products Corp. received a $350,000 to $1 million loan for 32 jobs and Hynes Kokomo LLC, a loan of $150,000 to $350,000 for 13 jobs.
In total, businesses at that address received loans of $2.5 million to $6.35 million.
In the $1 million to $2 million range were five companies: AI Global Enterprise LLC on Spring Meadow Circle, 99 jobs; Boak & Sons Inc. on Victoria Road, 150 jobs; Fred Martin Ford Inc. on Mahoning Avenue, 73 jobs; Greenwood Chevrolet Inc. on Mahoning Avenue, 145 jobs; and Recovery Management Services on Patriot Boulevard, 206 jobs.
There were 21 businesses in the $350,000 to $1 million loan range.
Among them were Lane Funeral Homes Inc. and Lane Life Corp. on Mahoning Avenue. Combined, they retained 185 jobs with loans of $700,000 to $2 million.
Two companies registered at 425 Victoria Road received loans. R.L. Lipton Distributing Co. got a $350,000 to $1 million loan for 74 jobs and Tri County Wholesale Distributors, a loan for $150,000 to $350,000 for 16 jobs. Combined the loan totals for the address was $500,000 to $1.35 million.
Three companies at 44 Victoria Road received a loan. R & R Inc. received a loan of $350,000 to $1 million for 93 jobs and ESEC Corp. and R & R Inc. of Pa. received loans of $150,000 to $350,000 for a total of $650,000 to $1.7 million.
ESEC reported keeping 24 jobs and R & R Inc. of Pa., 22 jobs.
For Simon Roofing, like most roofing companies, business slows when winter arrives. There was work for the company heading into the winter, but then COVID-19 struck. It hit so hard Simon forecast a 25 percent to 30 percent loss in business.
Those predictions would have resulted in layoffs to 80 employees. Had the forecast worsened, the number would have reached 120 employees laid off, “but the program enabled us to keep all our workers going,” Simon said.
“We kept 100 percent of our workers working 100 percent of the time,” he said.
“What really helps us as well,” Simon said, is job retention. “If you lost workers, there is a strong possibility you can’t those workers back.”
The loan also let Simon Roofing keep commitments it made to hire chemical and mechanical engineers who graduated in May from Youngstown State University.
The Chestnut Land Co., 7629 Market St., led by Ed W. Muransky, received a $2 million to $5 million loan to preserve 500 jobs. Chestnut Land Co. is the largest franchisee of soft pretzel vendor Auntie Anne’s.
Another business registered at that address, Rise Pies LLC, received a $350,000 to $1 million loan to retain 19 jobs. The company was founded by Muransky and his son, Eddie.
Combined, the companies received loans of $2.35 million to $6 million.
Another notable company that received a $350,000 to $1 million loan was Frank A. Rulli and Sons LLC, 8025 South Ave., the same address as one of the two Rulli Bros. grocery stores in Mahoning County. The company is run by state Rep. Mike Rulli, R-Salem, and his brother.
There are two businesses registered to 1419 Boardman Canfield Road — EDM Management, which received a $350,000 to $1 million loan and EDM Restaurant Ventures, which received a loan of $150,000 to $350,000. Combined they retained 113 jobs.
At 850 McKay Court, two companies — F.E.G. Corporation and The Rondinelli Co. — received a combined $700,000 to $2 million to save 225 jobs.
Here, one company — HBK Professional LLC — received a $5 million to $10 million loan to preserve 392 jobs.
Two other companies, however, were registered at the same address, 6603 Summit Drive. Receiving a $350,000 to $1 million loan was HBK Sorce Financial LLC, and getting a $150,000 to $350,000 loan was HBK Valuation Group.
Sorce Financial list zero jobs retained and the valuation group, 18.
In total, companies at the address received $5.5 million to $11.3 million.
Thirteen companies at 3695 Boardman Canfield Road affiliated with Bajco received loans of $5.05 million to $12.4 million to keep 2,481 jobs. Bajco is involved in the restaurant businesses and is affiliated with Papa John’s pizza.
Those companies were Bajco Florida LLC and Bajco International LLC, $1 million to $2 million; Bajco East LLC, Bajco Global Management LLC, Bajco Illinois LLC, Bajco International LLC, Bajco Michiana III LLC, Bajco Michiana IV and Bajco Philadelphia, $350,000 to $1 million; and Bajco Michiana II LLC, Bajco North LLC, Bajco Philadelphia LLC and Bajco Wisconsin LLC, $150,000 to $350,000.
Representatives from neither HBK nor Bajco returned a message seeking comment.
Two companies registered at 7055 Herbert Road received $1.35 million to $3 million. Star Extruded Shapes Inc. received a $1 million to $2 million loan for 128 jobs and Star Fab Inc., $350,000 to $1 million for 63 jobs.
The data released by the U.S. Treasury Department 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.
The government also disclosed less detailed information on companies who received loans of up to $150,000.
The program, part of the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act that Congress passed in March, incentivizes employers to keep their workers, or if they had been laid off, to get them back working.
The primary incentive for companies to seek PPP 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 program was to expire July 7, but Congress extended it through Aug. 8. It still has billions left after giving out more than 4.8 million loans since its start in early April.
The Associated Press contributed to this story.