Large public companies secure more than $240 million in small business loans

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By the time funding for the Paycheck Protection Program ran out last week, hundreds of millions of dollars had gone to publicly traded companies rather than the moms and pops the stimulus program was supposed to help, CNBC reported.

A Morgan Stanley research report found that at least $243.4 million went to public companies, including several with market capitalizations over $100 million. One of them, the oil services company DMC Global, had recently laid off a third of its workforce because oil prices have collapsed. Wave Life Sciences and Fiesta Restaurant Group also landed multimillion-dollar loans under the first batch of funding from the Small Business Administration program.

SOEs receiving PPP loans
Company Loan amount ($millions) Market capitalization ($ millions)
Global DMC 6.7 405
wave life science 7.2 286
MannKind 4.9 273
Lindblad Expeditions 6.6 264
Inherited housing 6.5 229
Misonix 5.2 198
Digimarc 5 192
party restaurant ten 189
OptiNose 4.4 180
Quantum Corp. ten 151
New Age Drinks 6.9 137
Aqueous therapeutic 4.8 122
Escalation 5.6 104
ZAGG 9.4 101
Veritone 6.5 101
Ultralife 3.5 99
Frequency electronics 5 86
Belly ten 85
American auto parts 4.1 81
Kura Sushi 6 78
Holdings of J. Alexander 15.1 74
Prema-Fix Environment 5.7 72
Protech Medical at home 6 71
Natural gas services 4.6 65
Flotec Industries 4.8 52
Compliant 4.7 47
PolarityTE 3.6 44
Air-T 8.2 37
Crawford United 3.7 36
CPI Aerostructures 4.8 35
Adamis Pharmaceuticals 3.2 26
ENGlobal 4.9 24
Broad wind power 9.5 24
Emmis Communications 4.8 23
Ballantyne 3.2 23
Hallador Energy ten 22
SIFCO Industries 5 13
BIOLASE 3 13
Vaso 3.6 seven
RST 6.7 6

SOURCE: Morgan Stanley, SCS

While $243.4 million in large business loans sounds like a lot, it represented less than 0.07% of the $349 billion in total funds available. Still, the practice has drawn attention and criticism. “I think you’ve seen pretty shameful acts by some big companies to take advantage of the system,” said Howard Schultz, the former chairman and CEO of Starbucks.

According to SBA statistics released last week, about 4,400 of the 1.6 million loans were worth more than $5 million, and the real estate sector received 3 percent funds disbursed. The typical loan size nationally was $206,000.

In New York, reported real estate recipients of PPP loans include Rotem Rosen’s MRR development ($1.7 million) and the GFI Capital Resources group of Allen Gross ($12 million). Congress and the White House reached an agreement on Tuesday to reconstitute the program with $310 billion.

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