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Thousands of Iowa companies get federal virus-related PPP loans

The Paycheck Protection Program was passed as part of the Cares Act to provide a direct incentive for small businesses to keep their workers on the payroll.
The Paycheck Protection Program was passed as part of the Cares Act to provide a direct incentive for small businesses to keep their workers on the payroll.(CNN)
Published: Jul. 6, 2020 at 10:13 PM CDT
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DES MOINES, Iowa (AP/KCRG) - The federal government says about 6,000 Iowa businesses received loans of $150,000 or more from the Paycheck Protection Program, requiring them to list their business names and addresses.

The list released Monday by the Treasury Department includes churches, manufacturers, car dealerships, farm-related organizations, and hospitals. Among them is firearms accessories company Brownells Inc., which received between $5 and $10 million, and King Contracting, the construction company founded by U.S. Rep. Steve King but sold to his son in 2003, which received between $150,000 and $350,000.

The PPP is a loan program that provided funds to small businesses to keep employees on payrolls. The loans can be forgiven by the Small Business Administration if retention criteria are met and funds are used appropriately, according to the SBA.

388 companies and organizations in Cedar Rapids took these larger loans, with the largest being between $5 to $10 million. The funds were intended to defend at least 19,243 jobs.

Another 52,500 Iowa businesses and nonprofit organizations received less than $150,000 and weren’t named by the Trump administration. 1,598 of those were in Cedar Rapids, qualifying for $57,794,786.72 in federal assistance intended to bolster at least 9,576 jobs.

In total in Iowa, the data provided by the Treasury Department shows the PPP funds helped employers that accounted for at least 523,205 jobs.

The secrecy for organizations that received the lower amount in funds spurred a lawsuit by news organizations including The Associated Press.

Copyright 2020 Associated Press and KCRG. All rights reserved.

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