Disappointing results from federal Payroll Protection
Program
By
Will Collette
 |
Shelter Harbor golf course, one of the largest recipients of federal pandemic aid to small businesses in Charlestown |
The
Paycheck Protection Program (PPP) was a popular part of the CARES Act, the only major
legislation to come out of Trump’s Washington to address the economic crisis
caused by the coronavirus pandemic.
Largely
written by the Democratic-controlled House of Representatives and grudgingly
accepted by Senate Republicans, the CARES Act was designed to provide
desperately needed relief to individuals and small businesses imperiled by the
economic crash caused by the pandemic.
Over
600,000 PPP loan-grants were issued. Borrowers were assured the loans would be
forgiven if they met the terms of the loan, mainly by retaining workers and
jobs the PPP money was supposed to help.
Nationally,
PPP was a mess – there wasn’t enough money and ran out quickly. A lot of that
money went to big companies, businesses with shady records or connections to
the Trump family as my Washington friend and colleague Phil Mattera of Good
Jobs First details in the article below my local reporting on PPP in
Charlestown.
It
took a while to get the Trump administration to release the names of the
recipients of PPP funding. In fact, that fight is on-going since Trump only
reluctantly agreed to release the names of businesses that received $150,000 or
more.
In
Rhode Island, 2,453
companies were on that list. Among the biggest employers in the state to
receive major PPP funding are Brown University, Taco Inc., KVH Industries,
Moses Brown School, the Pawtucket Red Sox who are leaving Rhode Island to go to
Worcester, the Foxy Lady strip club and Rhode Island Public Radio.
Only
10 employers in Charlestown received PPP funds. These include:
In
the range of $150,000 to 350,000:
- Construction
contractor C & C Investments with 14 employees;
- Larlham
Landscape with 18 employees;
- Ocean
House Marina with 25 employees;
- Stedman
and Kazounis plumbers with 23 employees;
- H.D.
Randall real estate with 23 employees;
- RMJC
LLC, the legal name for Ray Mott’s Mott Chace Sotherbys Realty, with 17
employees;
- Charlestown
Rathskeller with 65 employees and
- The
Nordic Lodge with 54 employees.
Only
two Charlestown employers received funds in the PPP’s next category, the
$350,000 to $1 million range:
- Arrowhead
Dental with 71 employees and
- Shelter
Harbor golf course with 60 employees.
Many of these Charlestown businesses are well-known and for the
most part well-respected. I hope they have been able to use the funding to keep
going and of course, to “protect paychecks” for their workers.
But I wonder why there aren’t more
Charlestown recipients. Yes, Charlestown is small, but only 10 PPP payouts out
of almost 2500 statewide is ridiculous.
I suggest Charlestown’s Town Council or at least its
Economic Improvement Commission should look into why such a low participation
rate and what steps the town should undertake to save jobs and small businesses
in Charlestown.
Charlestown's unemployment rate for May, the latest numbers available, show 16% unemployment. In addition to an unprecedented high unemployment rate, the state's data also shows that around 10% of Charlestown's work force has dropped out of the labor market since March.
Now here is Phil Matera’s review of PPP at the
national level.