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Some Md. industries, regions score big in landing PPP loans

Chick & Ruth's Delly in Annapolis, shown here after the pandemic began in March, received between $150,000 and $350,000 in loans. The restaurant industry in Maryland has been savaged by the economic slowdown. (The Daily Record/Bryan P. Sears)

Chick & Ruth’s Delly in Annapolis, shown here after the pandemic began in March, received between $150,000 and $350,000 in loans. The restaurant industry in Maryland has been savaged by the economic slowdown. (The Daily Record/Bryan P. Sears)

Businesses and nonprofits in four of Maryland’s seven congressional districts were awarded almost three-quarters of the state’s Paycheck Protection Program loans totaling less than $150,000. Baltimore accounted for approximately a tenth of these small loans, more than any city in Maryland. Nevertheless, the 7th Congressional District, which covers part of Baltimore City, received only 2.7 percent of them – less than any other district.

The 7th district, which encompasses just over half of the city, some sections of Baltimore County and the majority of Howard County, is a majority-minority district where people identifying as other than white make up almost 65 percent of the population.

The 1st, 3rd, 6th and 2nd Districts received the most loans under $150,000. Their constituents account for about half of Maryland’s population.

In all, nearly 13,000 Maryland businesses, ranging from independent pharmacies and restaurant chains to car dealers and hoteliers, received about $10 billion in federal aid.

The program provides up to $10 million in loans for small businesses to help them ride out government closures meant to slow and contain the spread of the novel coronavirus.

Within data provided by the Small Business Administration, Paycheck Protection Program loans were divided into two categories: small loans, those under $150,000, and large loans, those over $150,000. Exact loan amounts were not provided for large loans, only ranges. Addresses and business names were not provided for small loans.

Maryland businesses and nonprofits received slightly over 68,000 small loans amounting to almost $2.5 billion. Within this group, full-service restaurants, dentists, physicians’ offices (excluding mental health professionals), lawyers and religious organizations received the most money in that order. This accounted for just under 17 percent of all small loans received by the state.

Dentists, hospitals, and physicians received approximately $183 million in the form of over 3,400 loans. Hotels and bars received small loans worth about $28 million combined. Full service restaurants received over $100 million, accounting for almost five percent of all small loans. There were 1,500 loans awarded to religious organizations, totaling almost $57 million.

Primary and secondary schools, including parochial schools, only received 0.2 percent of small loans.

Maryland businesses and nonprofits just under 13,000 large loans, totaling from about $5.1 billion to about $12.3 billion.

Within this category, new car dealers, physicians’ offices, full service restaurants, engineering services and plumbing, heating and air conditioning contractors were among the industries receiving the highest amount of money. It is not possible to categorize these industries in order of the highest recipient, since the data  only provides loan ranges.

Plumbing, heating and air conditioning contractors received between about $130 million and $310 million. The other four industries received similar amounts, ranging from about $140 million to $345 million.

National data released by the U.S. Small  Business Administration indicated that five sectors — health care and social assistance; professional, scientific and technical services; construction; manufacturing; and hotels and restaurants — accounted for more than 56% of all loans.

Five Maryland hotels received loans of between $2 million and $5 million, including Four Seasons Hotel in Baltimore. (The Daily Record/File Photo)

Five Maryland hotels received loans of between $2 million and $5 million, including Four Seasons Hotel in Baltimore. (The Daily Record/File Photo)

The Paycheck Protection Program  loans are forgiven if businesses use a certain percentage of the loans  to continue paying workers.

There is roughly $132 billion available for additional loans for the program, which runs through Aug. 8.

In Maryland, 86 businesses and nonprofits received between $5 million and $10 million; 537 received between $2 million and $5 million; and more than 5,100 were loaned between $350,000 and $1 million.

In Maryland and nationally, the hospitality and leisure industry — hotels, restaurants and casinos —  were especially hard-hit.

Hotels were not technically closed under any statewide order. Some local jurisdictions, however, issued their own restrictions. All were limited to some degree by state restrictions on the number of people who can gather.

The industry reported more than one in every three jobs lost during the first two months of the pandemic in Maryland. In all, the sector showed a decline of 120,000 jobs in April compared to March and more than 137,000 jobs compared to February 2020.

Overall, 150 Maryland hotels received loans totaling between $51.3 million and $125.8 million for roughly 10,500 jobs.

Five received between $2 million and $5 million, including the Four Seasons in Baltimore and the Hyatt Regency in Bethesda to protect more than 1,030 jobs.

Twenty hotels in Ocean City received loans totaling between $5.4 million and nearly $13.9 million.

In Bethesda, 14 hotels received between $10.4 million and $25.2 million.

More than a dozen hotels in Baltimore received between $5.8  million and $14.4 million, including the Holiday Inn Express on Russell Street adjacent to the Horseshoe Casino. Owners of the hotel reported that the loan between $150,000 and $350,000 would secure 32 jobs.

Similarly, three hotels in Hanover near Maryland Live Casino received a total $450,000 to nearly $1.1 million to secure 104 jobs. The three hotels appear to be operated by corporations owned by a Delaware-based real estate investment trust.

Restaurants generally fall into two categories in the program — full service and limited service.

For more than two months restaurants in the state were ordered to provide only carryout and curbside service

More than 600 full-service restaurants received between $77 million and $333 million for more than 31,400 jobs.

Top recipients included Rockville-based Silver Diner Development and Glen Burnie-based Mission BBQ Management. Both were reported to have received loans valued between $5 million and $10 million to protect 500 jobs each.

The group that owns Seacrets in Ocean City was awarded between $2 million and $5 million to protect more than 280 jobs, according to federal records.

In Baltimore County, the popular Pizza John’s restaurant received between $350,000 and $1 million to protect 135 jobs.

Owners of two fast-service restaurant franchises were approved for two of the largest loans within the program.

The RC Group, an Annapolis-based franchisee of Yum Brands, was awarded a loan ranging between $5 million and $10 million to secure up to 500 jobs, according to the data. The company, which is owned by Bob Carlucci, operates franchises, including 23 Taco Bells and one KFC in Maryland, as well as locations in Delaware and Virginia The company, on its website, bills itself as the operator of the most Taco Bell franchises in Georgia.

Elkridge-based Lemek LLC was awarded a loan within the same range as The RC Group, to secure 500 jobs. The company operates at least four Panera Bread franchises in Maryland.

In all, 168 corporations falling into the limited-service restaurant category were approved for a total amount of loans ranging between nearly $66 million and $154 million for a reported nearly 16,000 jobs.

Two well-known Annapolis establishments — Chick & Ruth’s Delly and Harry Browne’s on State Circle — each received between $150,000 and $350,000.

 

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