COVID-19, Local, Science

Park Forest Businesses Cash in on $3M+ PPP Loans to Save Over 400 Jobs

"We the people" by Damian Gadal is licensed under CC BY 2.0
“We the people” by Damian Gadal is licensed under CC BY 2.0

Park Forest, IL-(ENEWSPF)- Park Forest businesses won over $3 million in Paycheck Protection Program COVID-19 pandemic forgivable loans, according to data released today by the U.S. Small Business Administration. The loans surveyed by eNews Park Forest were all less than $150,000 borrowed by 147 business entities ranging from self-employed individuals, sole proprietorships, to independent contractors, non-profit organizations, and a host of corporations and LLCs.

Only one Park Forest business made the list of those borrowing over $150,000: Imageworks Manufacturing, Inc., on South Street, which borrowed an estimated $150,000-$350,000 through Fifth Third Bank with the intention of saving 36 jobs. That loan was approved on April 13, 2020.

None of the businesses that borrowed under $150,000 were named in the data released by the SBA.

The largest loan under $150,000 was $147,985 to a corporation that claimed eight jobs would be saved by the loan. That loan was administered by First Midwest Bank.

The smallest loan secured by a Park Forest business was for $1,042 by an independent contractor. That loan was administered by WebBank.

The average amount borrowed by all businesses in the Village was $20,977.48.

One entity, a non-profit organization, indicated that the loan would help save 64 jobs.

According to the SBA, PPP loans will be fully forgiven “if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 60% of the forgiven amount must have been used for payroll).” If the loans are not forgiven, the interest rate is 1%.

“Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease,” the SBA stipulates.

All told, 23 PPP loans went to self-employed individuals, 17 went to contractors, 10 went to sole proprietorship businesses, 10 went to non-profit organizations, and the rest, or 86, went to corporations, Subchapter S Corporations, or Limited Liability Corporations (LLCs).

None of the organizations were Veteran owned. Seven businesses indicated they were “Male Owned,” four were “Female Owned.” The rest left that field unanswered.

One business indicated that it was white owned, two said on their applications that they were Black or African American owned. The rest left that field unanswered.

The PPP loans under $150,000 for Park Forest are meant to retain 405 jobs. Some receiving loans did not indicate that there were any jobs that would be retained by the loan, and a few answered zero, “0.” For others, that field was left blank.

eNews Park Forest did not apply for a loan.