Sioux Falls and coronavirus: Analyzing the Paycheck Protection Program and local businesses

Small businesses across Sioux Falls and the rest of the state clamored for government funding in the fallout of the coronavirus pandemic, and data sets released this week show how the money was distributed.

When Congress approved the first round of the Paycheck Protection Program as part of a $2 trillion federal stimulus package, it only took a couple of weeks for funding to run out, prompting policymakers to add billions more to the pot and continue to tweak and adjust the scope and nature of the program.

Data sets released Monday by the U.S. Small Business Administration show an incomplete picture of how the Paycheck Protection Program has benefited South Dakota businesses and nonprofits.

The information shows the names of any entities that received PPP loans of $150,000 or more and what lenders were the most active in distributing the billions of taxpayer dollars flowing to small companies, independent contractors and nonprofits.

Loans through the PPP are 100 percent forgivable as long as the small business or nonprofit in question follows the rules in how the money is spent. Funding through the program is intended only for payroll and some other fixed costs.

Here's a breakdown of how Sioux Falls has benefited.

WHO WERE THE BIGGEST BORROWERS?

While some of the biggest names from Sioux Falls' private sector were the recipients of federal loans through the program, some of the largest PPP loans in the city went to the Sioux Falls' Catholic school system and health care groups. 

While the data from the SBA doesn't include specific amounts of each loan, it does lump the loans into different categories based on their range in value. 

It's also worth noting that nearly three dozen local firms and nonprofits received more than $2 million in PPP funding.

Here are some of the top recipients in Sioux Falls:

• Regency Midwest Ventures Limited Partnership, $5 million to $10 million
• Sonifi Solutions Inc., $5 million to $10 million
• Orthopedic Institute, $2 million to $5 million
• Sioux Falls Catholic School Corporation, $2 million to $5 million
• Sioux Falls Ford, $2 million to $5 million
• Sioux Falls Specialty Hospital, $2 million to $5 million
• Sioux Steel Company, $2 million to $5 million
• Southeastern Behavioral Health, $2 million to $5 million
• Total Card, $2 million to $5 million
• U.S. Hotel Ventures, $2 million to $5 million
• Vern Eide, $2 million to $5 million
• Volunteers of America Dakotas, $2 million to $5 million
• University of Sioux Falls, $2 million to $5 million
• Lloyd Companies, $2 million to $5 million

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HOW MANY RECEIVED FEDERAL AID?

More than 4,000 of the loans tracked by the SBA went to businesses or nonprofits with a Sioux Falls address.

Broken down by value range:

• Under $150,000: 3,847
• $150,000 to $350,000: 343
• $350,000 to $1 million: 202
• $1 million to $2 million: 62
• $2 million to $5 million: 33
• $5 million to 10 million: 2

WHAT BANKS DID THE MOST LENDING?

Analyzing the work of the banks and other lenders responsible for distributing the funding depends on how the lending activity is analyzed.

Thousands of loans of all sizes went to Sioux Falls businesses and nonprofits.

First Premier Bank granted the most smaller loans, with 661 loans in the under-$150,000 category. Again, that is only considering entities with a Sioux Falls address.

The First National Bank in Sioux Falls approved 392 loans to local businesses in the smaller category, but led all other lenders in loans of larger amounts, with 111 additional loans of $150,000 or more. 

First National also granted four loans in the $2 million to $5 million range. However, First Premier had six loans in the same category.

Neither facilitated the two loans to Sioux Falls businesses that fell into the $5 million to $10 million category. Those were granted by larger chains, U.S. Bank and Bank of America.