Seniors service providers clean up at least $ 252 million in small PPP loans


Senior housing providers in the United States have received at least $ 252 million through Paycheck Protection Program (P3) loans of less than $ 150,000.

According to a Senior Housing News analysis of P3 loan data released by the Small Business Administration (SBA), retirement assistance and continuing care service providers (CCRCs) in California, Florida and Wisconsin have received the most money through the program. The data included loans distributed to vendors in all 50 US states, Washington, DC, and Puerto Rico.

Total value of PPP loan by state, not including DC or Puerto Rico.
Hover over a state to see the total PPP amount.

In total, the more than 4,500 loans have helped senior housing providers cover the salary expenses of more than 50,000 employees, the data shows.

Seniors’ residences were among several long-term care industries that received funding under the loan program. For comparison, home care agencies raised over $ 666 million in the form of small PPP loans, while skilled nursing operators and associated providers received approximately $ 165 million.

The $ 660 billion Federal Wage Protection Program (PPP) is part of the larger $ 2 trillion stimulus package of the CARES coronavirus law passed in March. Through PPP, US businesses have accessed hundreds of billions of dollars in the form of Small Business Administration (SBA) loans amounting to 250% of a company’s average monthly salary costs, or about two and a half months. The initial $ 350 billion cash pool ran out just days after the program launched in april, and legislators approved an additional $ 310 billion in funding soon after.

SHN analyzed federal data using NAICS codes, which are used by government agencies and businesses in Canada, Mexico, and the United States to classify businesses by economic activity. The initial analysis included P3 recipients who filed a NAICS code of 623311 or 623312 and received loans under $ 150,000.

Recipients of these relatively small PPP loans are believed to be generally immune from audits, as the Treasury Department and SBA have stated that companies borrowing less than $ 2 million are considered to have made their loan applications. sincerity.

Some suppliers relied on PPP to stay afloat during the worst days of the pandemic, as have many other companies across the country. One of those providers was Chicago Methodist Senior Services (CMSS), a nonprofit senior housing and care organization, which applied for and received a $ 2.6 million PPP loan through Wintrust Financial.

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“The PPP money really came at a good time,” CMSS President and CEO Bill Lowe told SHN. “We had money for PPE but we had trouble getting it.”

But the program has had its share of problems. A study by the National Community Reinvestment Coalition found that black business owners had more trouble getting federal help through the program. And there is some evidence that some large companies have received PPP loans, but did not rehire most of the employees they laid off due to the coronavirus pandemic.

Yet, like the initial PPP loans burn out and lead to further layoffs, many small business owners are claim another rescue package. A Senate Republicans coronavirus relief plan released on Monday would set up a new PPP of loans totaling $ 190 billion, including funds remaining from the first run of the program. The proposal also includes a separate $ 100 billion relief fund for businesses that are seasonal or located in “low-income census tracts,” according to a Washington Post analysis.

Break down the data

The most populous states led the pack in total funding sent to seniors’ residence service providers. Suppliers in California, Florida and Wisconsin scored approximately $ 29 million, $ 19 million, and $ 17 million, respectively.

Meanwhile, vendors in smaller or less populated areas, such as Washington, DC, Rhode Island, and Delaware, received the least amount of money, with just over $ 83,000, $ 169,000, and $ 324,000. in total, respectively.

As to why Wisconsin, a state of just 5.8 million people, got the third highest amount in the United States is unclear. But it might have something to do with the number of small businesses out there, according to Michael Pochowski, CEO of the Wisconsin Assisted Living Association, affiliated with Argentum.

“Wisconsin has a number of vendors with fewer than 500 employees who were likely eligible for the PPP program,” Pochowski told SHN. “I can’t be sure how compared to other states or if that’s actually why there was a higher total loan value in Wisconsin, but we have communicated the opportunity to apply to the P3 program with the members early and often, knowing the costs associated with Covid -19 were increasing rapidly.

Nationally, P3 loans averaged about $ 60,000 and covered the salary expenses of an average of 13 employees at each company.

Some lenders have been more successful than others in providing small P3 loans to the elderly and, as expected, the big national banks have led the way. Wells Fargo has made 285 small P3 loans to senior housing providers, while Bank of America has made 189 and JPMorgan Chase Bank has made 144 loans, the data shows.

But smaller or less traditional banks were also a big part of the lenders. Online fintech company Kabbage, Inc. made 120 small PPP loans, while Popular Bank – doing business as Banco Popular de Puerto Rico – distributed 41 PPP loans in the United States.

Despite additional help from PPPs and other government loan programs, providers expressed frustration on a relative lack of government financial support for the retirement home industry compared to retirement homes and other health care providers. And there is evidence the public supports this as well: A nationwide poll of likely voters found that 80% approve the disbursement of emergency funds to the elderly, according to the conclusions published on July 23 by the Argentum industrial association.

This article was written by Tim Regan based on data analysis and visualization by Aging Media Network senior web designer Kosti Marko.


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