Hawaii companies took $ 1.26 billion from federal program this year
Nearly 16,000 Hawaiian businesses have so far benefited from potentially repayable federal loans this year aimed at maintaining jobs amid the coronavirus pandemic.
The US Small Business Administration reported that 15,819 Hawaii businesses received $ 1.26 billion on Sunday from the second paycheck protection program approved by Congress in December.
Last year, 25,097 Hawaiian companies received $ 2.48 billion in the first iteration of the PPP, which began in April with $ 349 billion quickly depleted, followed by an additional $ 310 billion which was the first round of the program, which expired in August.
The second round was funded to the tune of $ 284 billion, and the original March 31 deadline was recently extended to May 31.
Applications can still be submitted through local lenders hired to process SBA applications.
The Hawaii Bankers Association estimates that 310,000 jobs statewide have been supported by PPP to date, including 170,000 in the first round and 140,000 in the second round.
Rich Wacker, president of the business organization, who is also chairman and chief executive officer of American Savings Bank, said the second round of PPP loans was helping the hardest-hit businesses in Hawaii stay afloat while also paying them back. employees.
“The recent extension of the PPP deadline to May 31 will allow even more local businesses to receive much needed support, pushing our state further on the road to recovery,” he said in a statement.
PPP loans are primarily designed to pay the payroll, but also allow certain products to be used for other expenses, including rent, mortgage payments, and utilities.
The second round of the program was more focused on small businesses and offered loans of up to $ 2 million, compared to $ 10 million in the first round. Some businesses that received loans in the first round might also qualify for a second loan, although the eligibility criteria are more limited.
For example, Love’s Bakery, which received a first PPP loan of $ 2.8 million last year, said it could not get a second raffle. The company closed last week after nearly 170 years in business, terminating 231 employees.
The second round of PPP included an exclusive 14-day application period for companies, including nonprofits with fewer than 20 employees.
Nationally, 4 million PPP loans had been made this year until Sunday for $ 224 billion of the $ 284 billion available, according to data from the SBA. Most of the loans were second-draw loans totaling $ 187 billion, compared to $ 37 billion in first-draw loans.