Small businesses and nonprofits on Long Island secured nearly 19% of the Paycheck Protection Program loans made in New York State, according to data released on Monday.
More than 60,250 loans were made in Nassau and Suffolk counties, out of 332,900 statewide, records from the U.S. Small Business Administration and Department of Treasury show.
The agencies, under pressure from Congress and the media, disclosed some details of PPP recipients nationwide. Borrowers of $150,000 or more were named without their specific loan amount, while those receiving less than $150,000 weren’t named but the specific loan amount was provided.
Among the local recipients of the biggest loans, $5 million to $10 million, were drugmaker Bactolac Pharmaceutical Inc. in Hauppauge, transportation software provider Clever Devices Inc. in Woodbury, Grassi & Co. accountants in Jericho, H2M Architects + Engineers in Melville, Newsday Media Group in Melville and retailer Sam Ash Music Co. in Hicksville.
In all, 70 companies and nonprofits in Nassau and Suffolk counties received loans of between $5 million and $10 million. They represent 15% of the 445 biggest loans made statewide.
“We have 36 people, that if not for the PPP, we wouldn’t have been able to keep,” said Louis Grassi, CEO and founder of the accounting firm that bears his name, adding he considered a 10% reduction in the firm's workforce of 325 people.
“We kept them employed because of the PPP and directed them to help other companies with their PPP applications,” Grassi said.
H2M CEO Rich Humann said his company's PPP loan helped to preserve the firm’s most important asset: 467 employees.
“H2M was forced to contend with the crippling uncertainty in late March that came with the Covid-19 pandemic and subsequent economic shutdown,” he said. “The shutdown put at risk the continuation of capital design and construction projects…The sustainability of our valued workforce was my highest priority, so the benefit of the Paycheck Protection Program was and is immeasurable.”
SBA and Treasury released loan data as of June 30, the original deadline for the loan program. On July 4, President Donald Trump signed a bill into law that extends the application deadline until Aug. 8. The bill was passed unanimously by both houses of Congress last week.
The federally guaranteed loans are for up to $10 million with an interest rate of 1% and a five-year term. The loans may be forgiven in some cases, and borrowers must have 500 or fewer employees.
Besides the 70 local recipients of the largest PPP loans, 342 Long Island companies and nonprofits received loans of $2 million to $5 million and 702 got loans of $1 million to $2 million. More than 2,580 borrowers have loans of between $350,000 and $1 million; 5,171 have loans between $150,000 and $350,000.
By far the largest group, 56,560 borrowers, received under $150,000 each. Together, those loans totaled nearly $2 billion.
Kevin Law, president of the Long Island Association business group, said the data shows the PPP was embraced by small businesses and nonprofits struggling to survive the coronavirus pandemic and shutdown of nonessential activity to slow the virus’ spread.
“It’s great to learn Long Island received a good share of the PPP loans as our region was in the epicenter of this pandemic and our businesses suffered more economic pain than the rest of the country and thus are deserving of this financial assistance,” he said.
PPP ON LI
Small businesses and nonprofits on Long Island received billions of dollars in bank loans backed by the U.S. government to survive the coronavirus through the Paycheck Protection Program, or PPP.
Total Number of Loans: more than 60,000
$5 million to $10 million: 70 borrowers
$2 million to $5 million: 342
$1 million to $2 million: 702
$350,000 to $1 million: 2,581
$150,000 to $350,000: 5,171
under $150,000: 56,560
Note: based on data for New York Congressional Districts 1-4, which encompass most of Long Island.
- Compiled by Ryan Restivo
SOURCES: U.S. Small Business Administration, U.S. Department of Treasury
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