Here's where $290 million in Paycheck Protection Program money went in the Salem area

More than $290 million was handed out to small businesses in the Salem area through the federal Payroll Protection Program, in an effort to retain 36,000 employees, according to an analysis of federal data. 

The Payroll Protection Program, part of the CARES Act of March, was designed to give loans to small businesses impacted by COVID-19 with 500 employees or fewer so they could keep their employees on the payroll.

The largest sector in the valley that received loans from the program was construction where more than 150 companies received a total of more than $53 million.

Other sectors that received large amounts in the valley included healthcare ($38 million), agriculture ($31 million) and manufacturing ($22 million).

The federal government didn’t release exact dollar figures for loans, but released ranges of loan amounts such as $5 million to $10 million, $1 million to $2 million and $150,000 to $350,000.

Four companies in the valley received between $5 and $10 million: Freres Lumber in Lyons (464 employees); non-profit employment service Galt Foundation of Salem (500 employees); K & E Excavating of Salem (243 employees); and Santiam Memorial Hospital in Stayton (426 employees).

According to Treasury Department data, more than $521 billion in forgivable loans were given out to 4.8 million businesses in the United States to offset impacts during the COVID-19 pandemic.

Churches and religious schools receive money for first time

The PPP loans were the first time non-profits like churches were eligible to receive loans administered by the Small Business Administration.

While some small businesses struggled to get loans under the program, religious institutions in the Salem area received at least $6.6 million, including over $1 million received by Corban University to retain 356 employees.

Those receiving over $350,000 included Church on the Hill in Turner, the Family YMCA in Salem, the Mt. Angel Abbey and Regis St Mary Catholic School in Stayton.

At least 25 religious organizations around Salem received the forgivable loans to preserve at least 1,855 jobs, including First Baptist Church of Salem getting over $150,000 to preserve 84 jobs.

“To put the numbers in perspective, the PPP application included both First Baptist Church of Salem and Capital Christian School, our P3 through grade eight school,” Executive Pastor Steve Hunter said. “Many of the positions in both the church and school are part time.”

A Newsweek analysis said churches in the United States received $7.3 billion from the program.

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Lloyd Chapman, the president of American Small Business League, said the stimulus package was intended to retain and jobs.

“Churches don’t create jobs,” Chapman said. “Churches aren’t small businesses. I’m sure their revenue is down, but if you’re trying to increase church revenue, you get their parishioners back to work.”

The loans will be forgiven if at least 60% is used for payroll costs and interest on mortgage, rent and utilities. But many are using the money solely on payroll costs.

Blanchet Catholic School received over $350,000 to preserve the jobs of 46 employees.

“We haven't heard the details of the process for forgiveness so that will not be decided until down the road,” said Blanchet Catholic School President Bob Weber.

Healthcare receives largest percentage nationally

The largest sector that received loans nationally was the health care industry with over 12.9% of loans.

Doctors' offices in Oregon were required to close during the shutdown and hospitals were only permitted to do emergency procedures, but assisted living facilities had to continue to operate.

Ron Shinkle, who owns assisted living facility Connections Residential Services, received about $82,000 within about a day and a half of applying.

“It’s all payroll,” Shinkle said. “It’s in a specific account. We’re using it all for payroll.”

Media and printing companies in and around Salem received $4.6 million.

The EO Media Group, which is headquartered in Salem, received over $2 million to keep 214 people employed at its newspapers including the East Oregonian, Capital Press and The Bulletin of Bend.

Country Media of Salem, which owns newspapers including the Tillamook Headlight Herald and the Coos Bay World, received over $350,000 to preserve 75 jobs.

Receiving loans, then closing 

Eagle Newspapers, based in Salem, had its loan for over $350,000 approved April 13 to preserve 52 jobs.

On April 1, it sold the Polk County Itemizer-Observer and laid off nine employees, and the company has recently sold off a number of newspapers and publications in the Columbia Gorge.

It wasn’t the only organization in the area that received a loan and modified its operations.

The Salem-Keizer Education Foundation received over $150,000 to retain 132 employees in April and announced in June it is ceasing operations.

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The SBA didn’t release exact dollar figures of how much each company released, only dollar ranges. And it didn’t release the names of businesses that received less than $150,000.

That means the amount of money received by businesses in the Mid-Valley could be more than twice the $290 million found in the analysis.

The American Small Business League has filed a Freedom of Information Act lawsuit in district court seeking a release of all information.

“The average business in Oregon has less than 10 employees. Oregon’s probably like 8,” Chapman said. “If you look at the PPP money, I think we’re going to see that the overwhelming majority went to companies with over 500 employees.”