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About 5,400 companies in Coastal Bend received PPP loans

By on March 9, 2021 0


Search our database to see which Texas companies have received a P3 loan over $ 150,000.

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Nearly 200 employees at Goodwill Industries of South Texas have not returned to work after being laid off due to the coronavirus pandemic.

The South Texas-based nonprofit closed its 29 locations in the Corpus Christi, Rio Grande Valley and Victoria area for six weeks.

It had around 800 employees before the pandemic developed. Now he’s got about 620.

The company was able to contact every employee on leave to return to work because they received a loan from the federal government’s paycheck protection program.

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His loan was between $ 2 million and $ 5 million.

“We had no income coming into our stores,” said Marjorie Boudreaux, vice president of marketing and fund development for Goodwill Industries of South Texas.

“We generate most of the revenue from our programs through our stores, or what we call our donation of goods program. And so the value of the PPP loan is that it was able to give us a good start so that we could get back to business. . So that’s huge for us. “

Local impact

So far, more than 5,400 companies in Coastal Bend have received a total of $ 196 million under the PPP program, said Jim Lee, director of the South Texas Economic Development Center at Texas A&M University-Corpus Christi. The average loan amount is just over $ 36,000.

PPP loans are part of the The $ 2 trillion economic recovery plan under the Coronavirus Aid, Relief and Economic Security Act that President Donald Trump promulgated on March 27.

The Trump administration released on Monday list of approximately 650,000 businesses across the country that have applied for PPP loans.

Loans are available to small businesses to help them retain their employees and rehire those who have been made redundant or on leave. If a small business maintains its payroll, P3 loans – the amount equals eight weeks of payroll costs – will be canceled by the federal government.

The $ 2 trillion total funding for the CARES Act is an all-time high, more than double the $ 830 billion provided by the US Recovery and Reinvestment Act of 2009, Lee said.

Among those receiving loans in Texas were energy companies, car dealerships, and houses of worship.

Corpus Christi’s economy has been hit harder than other metropolitan areas across the country by the pandemic, Lee said.

In addition to the city’s exposure to the oil and gas industry which has been particularly hard hit, Corpus Christi has about 30 percent more jobs in recreation and hospitality than in a typical American city.

These two industries account for the bulk of jobless claims and layoffs among businesses, Lee said.

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“While these funds appear unable to save Corpus Christi’s economy from recession, conditions would certainly have been worse than we have experienced in the past three months,” Lee said.

More than 40% of local businesses had been closed before Nueces County and other communities in South Texas issued stay-at-home orders, according to STEDC.

Business activity and workers physically commuting to work began to reverse their downward trend shortly after the first PPP payments were made in mid-April, Lee said.

“While this program appears to have helped many small businesses reopen, the social distancing behavior of residents and other regulatory restrictions have kept commercial traffic and economic activity at below normal levels,” he said. -he declares.

Using loans to retain staff

The Prosperity Bank has issued about $ 1.4 billion in PPP loans and closed about 12,000 applications, said Eddie Fady, the bank’s vice president. The $ 32 billion banking network with 280 locations in Texas and Oklahoma has approximately 30 locations in the Corpus Christi and Victoria area.

“The first phase went so quickly with little time for preparation,” said Fady. “It was a very stressful time for customers and for the banks. When phase two was launched, we all stepped up assuming the money was going to run out so quickly. And luckily, it didn’t. . “

The roughly $ 350 billion first round of PPP loans ran out in about two weeks, Fady said. The second round, which began in late April, added $ 320 billion to the program. About $ 125 billion remains to be earned.

The deadline to apply for a PPP loan has been extended to August 8.

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Urban Engineering was also able to retain all of its 50 employees with a PPP loan, said Jim Urban, part owner of the Corpus Christi engineering firm.

Although the loan has helped the company lower its wage costs, Urban is still worried about the future.

“We are now seeing less traffic coming in through the front door and less new work coming in. And we are finishing some of the older work,” he said. “The real question for people is, if people like us and engineering or professional companies, what happens in the third and fourth quarter or next year?

“Because there is no PPP program for that.”

Kathryn Cargo tracks business openings and developments while reporting on the impacts of city government decisions. Check out our subscription options and special offers at Caller.com/subscribe.

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