Small businesses walked away with table scraps as 5% of PPP loan seekers got more than half the money
DENVER – It took a lawsuit and several media requests for the Trump administration to finally release the list of companies that have benefited from the Paycheck Protection Program (PPP).
A Washington Post analysis found that 5% of recipients had raised more than half of the money from the $ 522 billion fund that was supposed to be designed for small businesses at least somewhat.
Some sizable companies, like Snooze AM, a Denver-based breakfast chain, received the maximum allocation of $ 10 million. Wellbridge Club Management of Colorado, which operates 19 gyms, spas and tennis clubs, has raised more than $ 7 million. University preparation received $ 496,299. And the Colorado Springs Catholic Secondary Education Committee received $ 487,060.
Meanwhile, many companies that account for the remaining 95% of beneficiaries have settled for table scraps.
Jeff Zepp, at American 3-D Printing at Evergreen, said he applied for a PPP loan hoping he could pay the rent.
“I was closed for two months,” he said. “I had no business for two months.”
He said he had to go through many hurdles to apply, and the application didn’t ask how much he wanted to borrow.
“About a month later, I noticed that $ 100 had appeared in my business checking account,” he said.
He only got a loan of $ 100.
“I just said, ‘Oh, that’s like a slap, you know?’ Why bother. “
Turns out Zepp has a lot of company.
Marguerite Shipman owns Events by Marguerite in Edwards, Colorado. She also applied for a PPP loan.
“All of our weddings have been downsized, or postponed or canceled,” she said.
The award-winning wedding planner told Denver7 it took her a week to complete the application process as she had to gather all the paperwork and fill out the paperwork while caring for a newborn baby.
“A month later, I was reported to have been approved for $ 54,” she said.
“It was in shock, especially when you found out that huge companies were getting a ton of money, or that other companies, especially in our area, were getting hundreds of thousands of dollars, not that I needed hundreds of thousands of dollars, but needed more than $ 54, ”she said.
After her experience with the CARES Act, Shipman decided to focus more on where she spends her hard-earned money.
“Instead of shopping at bigger stores for the holidays, I really focused on local businesses and small businesses,” she said.
Zepp said he was doing the same.
This story was first reported by our partners at the Denver Post. Read the full story in the Post.