SAN DIEGO (KGTV) -- Over 20,000 San Diego County entrepreneurs received small business loans from the government in hopes of staving off massive layoffs and help keep businesses from going under.
On Monday morning, the U.S. Small Business Administration and U.S. Treasury Department released information for nearly 5 million business and non-profits that received $520 billion of the Treasury Department’s Paycheck Protection Program (PPP).
Some of the names on the list raised questions about some of the beneficiaries of these loans, including Kanye West clothing company Yeezy, and the more than 30 Girl Scout chapters across the country.
In San Diego, 19,696 loans were approved for amounts of less than $150K totaling $693,194,989 of the PPP. Those that obtained the PPP claimed to have retained a combined 100,841 jobs, according to the data.
The data also shows loans ranging from $150K to $10M were disbursed to 3,734 companies in San Diego. The combined number of jobs retained totaled 193,774.
The money went to various types of businesses including nightclubs, bars and restaurants; financial services; home and auto repair companies; and medical, science, and tech companies.
Among those on the list that received up to $350,000 is the Manchester Financial Group, L.P. run by local businessman "Papa Doug" Manchester. Manchester was nominated by President Donald Trump to be the U.S. ambassador to the Bahamas. He withdrew his nomination in November due to "threats on his and his family's lives." Manchester and his wife donated nearly $500,000 to Trump's 2016 presidential campaign.
The PPP was designed to provide relief to "millions of American small businesses, supporting more than 51 million jobs and over 80 percent of all small business employees" said Secretary Steven T. Mnuchin.
“We are particularly pleased that 27% of the program’s reach in low and moderate income communities which is in proportion to percentage of population in these areas. The average loan size is approximately $100,000, demonstrating that the program is serving the smallest of businesses,” said Secretary Steven T. Mnuchin.
"Today’s release of loan data strikes the appropriate balance of providing the American people with transparency, while protecting sensitive payroll and personal income information of small businesses, sole proprietors, and independent contractors," said Mnuchin.
36 companies San Diego County received loans ranging between $5-10 million. The combined number of jobs retained for that loan range totaled over 13,000, according to the data.
DATA: SAN DIEGO PPP LOANS $150K to $10M
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One of those companies is Cerca Trova Restaurant Concepts in headquartered in Mission Valley. Cerca’s website says it manages 750 Outback Steakhouse restaurant locations in the nation. According to the SBA data, the loan would help Cerca retain 500 jobs.
The Illinois-based Kings and Convicts received between $5-10 million to help keep 500 local jobs intact. The company listed its address as 9045 Carroll Way in Miramar, the site of former local brewer Ballast Point, which it acquired in March at the start of the pandemic.
Another notable business is the San Diego Comic Convention. SDCC received $1 to $2 million in relief and listed the money would help retain 82 jobs. SDCC was forced to cancel this year's convention due to the pandemic.
The SBA data lends some insight into demographics and non-profit information. Not all loan recipients filled out the information leaving questions on jobs retention, race ethnicity, gender, and veteran status unanswered.
“Approximately 75% of all PPP loans did not include any demographic information because that information was not provided by the borrowers. SBA is working to collect more demographic information from borrowers to better understand which small businesses are benefiting from PPP loans. The loan forgiveness application expressly requests demographic information for borrowers," the SBA said.
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. According to the U.S. Small Business Administration, the SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.
The SBA says that criteria includes, “The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 60% of the forgiven amount must have been used for payroll).”
FROM THE SBA: Who can apply for PPP?
The following entities affected by Coronavirus (COVID-19) may be eligible:
- Any small business concern that meets SBA’s size standards (either the industry based sized standard or the alternative size standard)
- Sole proprietors, independent contractors, and self-employed persons
- Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location
- Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or Tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of:
- 500 employees, or
- That meets the SBA industry size standard if more than 500