PPP loans saved 1 million jobs in South Florida
The Paycheck Protection Program, which was created to keep workers employed at small businesses during the first months of the COVID-19 pandemic, handed out
$31.93 billion in Florida.
The Paycheck Protection Program meant to keep workers employed at small businesses during the first months of the coronavirus pandemic saved 3.3 million jobs in Florida, according to new data on borrowers and loan amounts released by the Small Business Administration.
One million of those jobs were in South Florida
PPP, a program developed in part by Senate Small Business Committee Chairman and Florida Republican Sen. Marco Rubio, was part of a massive $2 trillion relief bill that became law in March. PPP was designed as a forgivable government loan to small businesses affected by the pandemic, essentially allowing businesses that employ 500 employees or fewer to have payroll and business expenses covered by the federal government for a period of time.
The Small Business Administration released data in July that
showed the program saved 3.2 million jobs in Florida. But the data released over the summer only included the names of loan recipients who got more than $150,000. The data released by the federal government on Tuesday — after lawsuits from media organizations — included the names of all loan recipients and provided an updated look at a program that was extended until August.
The total spent on PPP in Florida was $31.93 billion.
Rubio said in a statement that he supports working with Democrats on the Small Business Committee to pass another round of PPP funds. The PPP program proved to be relatively popular with Democrats and Republicans during its first iteration, though additional money has been held up for months as both parties negotiate a comprehensive relief bill.
“It’s clear that the PPP has been the most successful piece of the bipartisan CARES Act, and it’s great news that so many Florida small businesses were able to take advantage of this historic lifeline to prevent from closing and to keep their employees paid,” Rubio said in a statement to the Miami Herald.
Rubio added that Congress should pass more PPP funding before 2021.
“It should have happened this summer. It needed to happen this fall. Enough is enough. Let’s get this done.”
In Miami-Dade, Broward and Monroe counties, the program saved about 1 million jobs, though the data was broken down by congressional district. The Miami Herald compiled jobs saved in seven congressional districts that mostly overlap with Broward, Miami
Dade and Monroe counties and found that 151,626 recipients in those districts reported 1,072,894 jobs saved.
The rapid application and approval process also made PPP loans an easy vehicle for fraud, something that Rubio said was a necessary evil to make PPP funds available in a matter of weeks. In Florida, publicly traded companies like Pollo Tropical’s Texas-based parent Fiesta Group applied for loans but later returned them. One Miami-based businessman who received $3.9 million in PPP loans despite monthly revenues and expenses at his moving business totaling about $200,000 was arrested after being accused of purchasing a $300,000 Lamborghini Huracan Evo with taxpayer money.
“For months, I’ve been calling on the SBA to be as transparent as possible about how American taxpayer money is being spent within the PPP program, including releasing a list of all PPP recipients,” Florida Republican Sen. Rick Scott said in a statement. “I’m glad this information is finally out. We know there was widespread fraud and abuse throughout the program, and tens of thousands of companies received PPP loans when they shouldn’t have. Now, as Congress considers additional relief for individuals and small businesses, we have to make sure ANY extension of the PPP program includes common sense reforms.”
Scott wants any future PPP recipients to prove that they’ve been negatively affected by the pandemic before being approved for loans, a common practice for SBA loans after major disasters but one that often takes months to process.
“We need to fix this and make sure loans only go to businesses that have shown a substantial reduction in revenue due to the coronavirus,” Scott said.
Multiple South Florida companies received $10 million, the largest PPP loan available. They include Deerfield Beach-based gym company Youfit, national law firm Boies Schiller Flexner LLP, Fort Lauderdale-based fiber optic telecommunications company Hotwire Communications, Fort Lauderdale-based regional airline Silver Airways and Miami-based law firm Cole, Scott & Kissane.
The SBA data also shows that Aventura-based restaurant chain Benihana received a $10 million loan, though a representative for the company said Wednesday it did not end up accepting the $10 million that it had been approved for from Connecticut-based Webster Bank. DEO records show the company terminated
501 Florida-based employees in April.
The Miami Herald contacted the largest loan recipients in Miami-Dade and Broward to learn how they ended up using the funds. Each had indicated they were seeking to retain 500 employees — the nominal maximum firm size allowed under PPP rules.
Richard Cole, managing partner of Miami-based law firm Cole, Scott & Kissane, PA, which according to the SBA’s filing received $10 million from City National Bank, said he would not comment on the firm’s finances.
A representative for Fort Lauderdale-based Silver Airways, which according to the SBA’s filing received
$10 million from City National Bank, did not respond to a request for comments. The airline has filed nine Worker Adjustment and Retraining Notification layoff or furlough letters with the Florida Department of Economic Opportunity affecting 325 workers.
A representative for internet provider Hotwire Communications, which according to the SBA’s filing received $10 million from City National Bank, said the company had no comment.
In May, the Miami Herald confirmed Flanigan’s Seafood Bar and Grill chain had received a total of $13.1 million in PPP funds from Bank of America. In an interview, CEO Jimmy Flanigan said that money was “heaven sent.”
“There is no doubt that without PPP there would have been a tremendous amount of layoffs at Flanigan’s,” he said.
In total, 423,134 loans were granted to Floridabased entities. Sole proprietors and independent contractors affected by the pandemic were also eligible to apply for PPP loans, though the program is currently closed as Congress and the White House decided not to pass an additional round of coronavirus relief during the fall.
On Tuesday, a bipartisan group of lawmakers unveiled a $908 billion coronavirus relief package in an attempt to break a months-long stalemate between House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell. That package, which was endorsed by Pelosi as a starting point for negotiations on Wednesday, includes $288 billion for another round of PPP funding.
Scott said he was opposed to the bipartisan proposal because of the money that will be sent to state governments.
“I’m very disappointed that a proposal from some of my colleagues today apparently includes provisions that spends hundreds of billions of dollars in taxpayer money to bail out wasteful states when we don’t even know how much is still unspent from the previous coronavirus response packages that Congress passed earlier this year,” Scott said in a statement.
Rubio said the bipartisan proposal “barely provides enough to fund a second round of Paycheck Protection Program loans” but said he was encouraged that some Democrats are willing to negotiate.
McConnell countered on Tuesday with a $500 billion plan that includes $257 billion for PPP funds. The White House has backed the scaled-down McConnell plan, but Democrats are not expected to endorse it.
IT SHOULD HAVE HAPPENED THIS SUMMER. IT NEEDED TO HAPPEN THIS FALL. ENOUGH IS ENOUGH. LET’S GET THIS DONE.
Sen. Marco Rubio, R-Fla., wants Congress to pass more PPP funding this month