TRD Insights: Big biz grabbed $243M in small-biz loans

Size of typical loan was $206,000 nationally

TRD New York TRD INSIGHTS /
Apr.April 24, 2020 04:05 PM
(Credit: iStock)

(Credit: iStock)

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 mom-and-pops the stimulus program was meant to help, CNBC reported.

A research report from Morgan Stanley found that at least $243.4 million went to public companies — several with market capitalizations of more than $100 million. One of them, oil services company DMC Global, had recently laid off a third of its workforce as oil prices collapsed. Wave Life Sciences and Fiesta Restaurant Group also landed loans worth millions of dollars from the Small Business Administration program’s initial batch of funding.

Public Companies Receiving PPP Loans
CompanyLoan Amount (Million $)Market Cap (Million $)
DMC Global6.7405
Wave Life Sciences7.2286
MannKind4.9273
Lindblad Expeditions6.6264
Legacy Housing6.5229
Misonix5.2198
Digimarc5192
Fiesta Restaurant10189
OptiNose4.4180
Quantum Corp.10151
New Age Beverages6.9137
Aquestive Therapeutics4.8122
Escalade5.6104
ZAGG9.4101
Veritone6.5101
Ultralife3.599
Frequency Electronics586
Potbelly1085
U.S. Auto Parts4.181
Kura Sushi678
J. Alexander's Holdings15.174
Prema-Fix Environmental5.772
Protech Home Medical671
Natural Gas Services4.665
Flotek Industries4.852
Conformis4.747
PolarityTE3.644
Air T8.237
Crawford United3.736
CPI Aerostructures4.835
Adamis Pharmaceuticals3.226
ENGlobal4.924
Broadwind Energy9.524
Emmis Communications4.823
Ballantyne3.223
Hallador Energy1022
SIFCO Industries513
BIOLASE313
Vaso3.67
TSR6.76

SOURCE: Morgan Stanley, CBS

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

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 industry received 3 percent of funds disbursed. The size of the typical loan nationally was $206,000.

In New York, reported real estate recipients of PPP loans include Rotem Rosen’s MRR Development ($1.7 million) and Allen Gross’ GFI Capital Resources Group ($12 million). Congress and the White House reached a deal Tuesday to replenish the program with $310 billion.


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