×
×
homepage logo
STORE

Paycheck Protection Program provided lifeline

SW Florida businesses estimated to have received $1.5 billion in PPP funds

By NATHAN MAYBERG - | Dec 16, 2020

news@breezenewspapers.com

Hundreds of small businesses in Lee County were aided by the Paycheck Protection Program this year, providing much-needed relief to companies who suffered through the devastation caused by state-ordered and locally-mandated closures and restrictions during the COVID-19 pandemic.

Total tally: An estimated $1.5 billion for Southwest Florida businesses, more than $30 billion statewide.

While largely considered a success for getting businesses through the toughest times, U.S. Senator Marco Rubio has called for a second round of aid.

Rubio, who chairs the Senate Committee on Small Business and Entrepreneurship, called for a second round of PPP at a hearing he convened Thursday to “fix problems identified” with the first round of PPP and “protect small businesses through the winter.”

In a statement issued at the hearing, Rubio said “The pandemic is still raging. Lockdowns are again being placed on small businesses, and consumer activity is falling.”

In Lee County, the biggest recipients of PPP funds as listed by the Small Business Administration were largely home builders, roofing companies, building contractors, landscapers, health care providers and car dealerships, most of which are based in Fort Myers.

The biggest listed recipient of payment protection program funds in the county was Western Global Airlines, an air cargo airline, at more than $8 million, according to data released.

A message left with CEO Jim Ness was not immediately returned.

Other top recipients listed in Lee County include Fort Myers-based Juniper Landscaping of Florida, at $7.6 million; Power Services Group of Cape Coral at $7.47 million; Benecard Holdings Inc. of Bonita Springs, at $7.34 million; and Radiology Regional Center in Fort Myers, at approximately $6.6 million.

Some notable names of larger recipients listed in Lee County was the Fort Myers law firm of Henderson, Franklin, Starnes & Holt, at $2.8 million and the Fort Myers Broadcasting Company, which includes WINK-TV, at $2.1 million.

Many smaller businesses also were listed as having received PPP funds such as The Homes Clinic in Cape Coral, at $27,174. YPCS Trucking in Cape Coral was one of the smallest recipients listed, at $4,219.

More than 380,000 small businesses in Florida received PPP funds of less than $150,000. Small businesses are defined as having up to 500 employees.

About 150 business in Lee County were steered through the process of applying for PPP loans by the Small Business Development Center at Florida Gulf Coast University. The center operates under a grant through the university.

All of those businesses which were processed through the center also received Economic Injury Disaster Loans (EIDL), which are grants of up to $10,000.

Businesses could receive $1,000 for every employee up to $10,000 for the grant.

Neil Shnider, a local CPA who works part-time for FGCU’s Small Business Development Center, helped guide businesses through the application process. Although the EIDL money was advertised as grants, he said the Treasury Office is making businesses who have had all of their PPP loans forgiven pay back the EIDL money as part of a five-year 1% loan.

“The IRS has told us the EIDL grant will be taxable,” Shnider said.

Shnider says he doesn’t think that is the way the program was intended to be used under the CARES Act.

“The intent of the law was to give free money,” he said.

Currently, the center is helping businesses fill out applications to have their loans forgiven. Shnider credited local chambers of commerce with helping to get the word out about the program.

In Southwest Florida, approximately $1.5 billion in PPP funds was allocated to businesses, according to Shnider. Shnider attributed the figure to the Lee County Economic Development Office.

Shnider said the amount of PPP funds businesses received was based on the number of their employees and the amount of their payroll. The formula was essentially 2.5 times the monthly payroll for a company.

More than $30 billion was distributed statewide to companies through the Small Business Administration as part of the CARES ACT. Nationwide, more than $525 billion has been distributed to more than 5 million small businesses and nonprofits, according to U.S. Sen. Marco Rubio, R-FL.

According to Rubio, more than 70% of small businesses in the country received PPP funds.

In Rubio’s statement Thursday, he said “Businesses need more help to make it through this winter, given a potential second wave looming and impending government lockdowns. Congress has voted unanimously three separate times to fund and enhance PPP and it is far past time for us to come together once again.”