Local businesses approved for federal loans

By: Alex Szwarc | Macomb Township Chronicle | Published July 28, 2020


MACOMB TOWNSHIP — Millions of American businesses received some welcoming news recently.

On July 6, the U.S. Treasury Department released which Michigan companies were approved for loans of more than $150,000 from the Paycheck Protection Program, or PPP, started by the federal government to help keep small businesses open during the COVID-19 pandemic.

There were 19,970 Michigan entries on the list provided by the Treasury Department. The spreadsheet detailed the loan range, which business received it, and how many jobs were retained, among other information.

Macomb Township had nearly 100 businesses that were approved.

In the $2 million-$5 million range, three Macomb Township businesses secured a loan.

Colasanti Construction Services, with 126 jobs retained; Michigan Production Machining, with 196 employees; and PTI Engineered Plastics, with 345 jobs retained.

The highest loan range was $5 million-10 million, in which 185 Michigan companies benefited from.

In the next range of $1 million-$2 million, eight Macomb Township companies received loans. They include MJC Land Investments, Randazzo Mechanical Heating and Cooling, Ray Wiegand’s Nursery, and Russ Milne Ford.

The range with the second largest amount of Macomb Township entries was $350,000 to $1 million, a range which saw over 20 local establishments. The number of employees retained vary from eight to 151. This loan range includes businesses such as Foam Factory, Jaguar Land Rover, Michigan Industrial Services, and Mr. Rooter Sewer and Drain Cleaning.

Drawing the most Macomb Township entries was the $150,000-$350,000 range, with over 60 businesses. The number of employees retained in this category varied from one to 120. Companies that fell into this category included Allied PhotoChemical, Cox Industries, Deneweth’s Garden Center, Five Star Industries, and the Lutheran Heritage Foundation.

The PPP, established by the CARES Act, is implemented by the Small Business Administration, or SBA, with support from the U.S. Treasury Department. The program provides small businesses with funds to pay up to eight weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.

The PPP prioritizes millions of Americans employed by small businesses by authorizing up to $659 billion toward job retention and certain other expenses.

Small businesses and eligible nonprofit organizations; veterans organizations; and tribal businesses described in the Small Business Act — as well as individuals who are self-employed or are independent contractors — are eligible if they also meet program size standards.

A July 6 PPP report indicates that over 4.8 million loans have been distributed, amounting in over $521 billion.

The report factors loan approvals through June 30.

Nearly 68% of loans are for under $50,000 with the average loan size being approximately $107,000.

Michigan has had $16 billion in PPP approved, ranking it ninth in the country for highest amount of approved loans.