Thanks to the U.S. Small Business Administration’s Payroll Protection Program, Butte and Anaconda nonprofits and businesses were able to obtain relief funds to compensate for COVID-19 hardships.
The program is part of the $2 trillion Coronavirus Aid, Relief and Economic Security Act, or CARES, which was signed into law March 27 and designed to help American businesses during the nationwide COVID-19 shutdown.
In Butte, 582 businesses and nonprofits received funds, keeping 6,352 workers on the job. In Anaconda, the number of businesses was 115, with 1,548 jobs saved.
The SBA did not provide business names for loans less than $150,000, but names of businesses given more than $150,000 were released.
In Butte, a total of $19,173,560.15 was awarded to 514 businesses and nonprofits. A total of $3,026,188.69 was loaned to 103 Anaconda businesses.
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The government agency released the information last week and emphasized SBA was “committed to ensuring that any release of PPP loan data does not harm small businesses or their employees.”
Loans of $150,000-$350,000 were awarded to 41 Butte businesses and nonprofits, with 20 more receiving $350,000 to $1 million. Five businesses received from $1 million to $2 million, and two received $2 million to $5 million loans. Those loans totaled $22.15 million to $54.35 million
In Anaconda, four businesses received loans of $150,000 to $350,000. Two businesses got $350,000 to $1 million, with one getting $2 million to $5 million, and another receiving a $5 million to $10 million loan. Money received by these eight businesses was between $8.3 million and $18.4 million.
Topping the Butte list was Community, Counseling, and Correctional Services, Inc., which employs 485, and REC Silicon, with 205 people on the payroll. Each received $2 million to $5 million.
The loan program could not have come at a better time for Mike Thatcher, chief operating officer for CCCS.
“As a nonprofit, the criteria fit us well,” he said.
CCCS is an organization that works within the correctional system to provide opportunities for treatment and education in lieu of incarceration.
CCCS had no reserves to rely on during the early stages of the pandemic and Thatcher said he feared the company could go the way of the Titanic.
“We literally would have had to lay off 50 to 60 employees if we had not gotten the loan,” he said. “Our sustainability was at risk.”
While the past few months have been challenging for the company, and stressful, too, with roughly 20% of the workforce needing to work from home, Thatcher is crossing his fingers and hoping for the best.
“We’re not out of the woods yet,” said Thatcher. “My hope is the virus doesn’t escalate and a vaccine is found.”
Julie Jaksha, regional director for Butte’s Small Business Development Center, is thankful the program has helped so many Butte businesses during a difficult time and calls it a “great investment.”
As regional director, she has talked to several Butte business owners who viewed the funds as a godsend. Some told Jaksha they would have closed their doors without the loan and more than likely would not have reopened.
“These loans were enough to weather the storm,” Jaksha said.
For Zac Yates, general manager at Yates Body Shop, his main concern is his 15 employees. He was bound and determined that all employees keep their jobs
“We jumped on the opportunity to get the loan,” he said.
With the help of the loan, the long-standing body shop has been able to stay afloat and keep its employees.
Yates described present-day as “a time of uncertainty,” but has faith that although it will take some time, a sense of normalcy will return.
“It’s just our reality right now,” he said.
Approximately 15 jobs at Action Inc.’s weatherization program were saved due to the federal loan.
According to Don Foley, chief financial officer, the furloughs definitely hurt the nonprofit.
“The loan allowed us to bring them back,” said Foley, who had feared some of the highly trained workers would find jobs during the interim.
Community Hospital of Anaconda, with 400 employees, received $5 million to $10 million, and AWARE Inc., which employs 500 people, received a $2 million to $5 million loan.
Fairmont Hot Springs Resort was another one of the Anaconda businesses that benefited.
According to general manager, Steve Luebeck, the loan enabled the company to continue operating.
“It pretty much saved us in the months of April and May,” Luebeck said.
Following Gov. Steve Bullock’s stay-at-home directive in March, Fairmont was empty of hotel guests, but that didn’t stop the power and insurance bills from coming.
“Those bills kept rolling in and needed to be paid whether we were open or not,” Luebeck said.
In addition, canceled reservations were piling high.
The loan enabled the general manager to keep some of his staff working and pay the bills, too.
“That was a blessing,” he said.
According to the Small Business Administration’s website, these PPP loans may be fully forgiven if the federal relief funds are being used to maintain the number of employees and their salary levels, mortgage interest, rent and utilities.
Otherwise, the loans have an interest rate of 1 percent, and payments are deferred for six months.
The program was recently extended and applications are now being accepted through Aug. 8.