Paycheck Protection Program (P3) Loans in Chicago: The Story of Who Got What

With generous terms and at a time of unprecedented panic as closures from the COVID-19 pandemic crippled the economy, 202,157 Illinois employers received forgivable loans from the Federal Check Protection Program from pay.

From Atlas Financial Holdings – incorporated in the Cayman Islands with its ‘main management offices’ in Schaumburg – to the Joffrey Ballet to Kivvit, the public affairs company, to Motor Werks of Barrington, Inc., all kinds of Illinois businesses, museums and schools. , religious and non-profit organizations took out the loans.

There was little incentive not to apply, as loans do not have to be repaid if they are used to cover wages, retain workers, and cover some overhead costs. Loan amounts were based on the number of employees. Employers had to certify on the PPP application that “the current economic uncertainty makes this loan application necessary to support the applicant’s ongoing operations”.

From employers unknown to organizations in the news because of their political ties, to companies serving the rich, to faith-based institutions, PPP loans were intended to provide financial lifelines allowing everyday workers to be paid. . Congress created PPP loans with bipartisan support as the devastating enormity of the economic crisis became evident with soaring unemployment.

The PPP program was envisioned as an interim emergency measure. Now, with the economy still struggling, the way forward is not clear.

Employers receiving the free money did not have to promise to keep workers or maintain current wages after the P3 money was used up, a big criticism of the program. Another criticism at the start was that there was not enough awareness about PPP loans to employers and lending institutions in underserved communities.

PPP loans are still available and applications are accepted until August 8.

Where did the money go

A Chicago Sun-Times analysis of Securities and Exchange Commission documents that publicly traded companies obtaining the loans were required to file and Treasury Department data released on Monday reveals:

Employers in relatively affluent Chicago neighborhoods and surrounding suburbs used P3 loans the most. There are no data available on the place of residence of the workers retained.

For loans over $ 150,000 to $ 10 million, employers in the northern and western suburbs got the most money. Outside of Chicago, Naperville was in the lead, followed by Schaumburg, Elk Grove Village, Rockford, Peoria, Elgin, Northbrook and Skokie.

In Chicago, zip code 60606, around the loop, had a potential jumbo loan total of $ 543 million – the most zip codes in Illinois. This includes 16 loans of $ 5-10 million. The Treasury Department gave only general ranges for these loans, not specific amounts.

For loans under $ 150,000, the main Illinois zip codes are:

  • 60062, comprising much of Northbrook, with $ 57.5 million in PPP cash.
  • 60654, River North, north and west of the Merchandise Mart, $ 48.9 million.
  • 60007, around the Palatine, with $ 47.2 million.
  • 60010, around Barrington, with $ 43.7 million.
  • 60614, around Lincoln Park, with $ 42.5 million.
  • 60602, around the loop, with $ 40.7 million.
  • 60606, around the loop, with $ 39.3 million.

Banks

The main bank making PPP loans in Illinois was giant JP Morgan Chase, with at least $ 1.6 billion in loans, large and small, to 21,732 employers.

With big banks focusing on their best customers, employers, especially smaller ones, have turned to other players. Kabbage, an online lender, recovered business in Illinois, with $ 95.3 million in 6,162 loans under $ 150,000 and 50 loans over $ 150,000 for a total of $ 15.6 million .

Restaurants

The Gage, located at 24 S. Michigan Ave., is one of many companies that received a PPP loan from the federal government amid the coronavirus pandemic.
Tyler LaRiviere / Sun-Times

$ 2-5 million – Rosebud Restaurants, covering 500 jobs.

$ 1 to $ 2 million – The Gage, 88 jobs; Eli’s Cheesecake, 204 workers; Restaurant in the Greek Islands, 102 jobs.

Listed companies

Controversy erupted when documents filed with the SEC revealed that publicly traded companies were getting PPP loans. Chicago-based Potbelly repaid a $ 10 million PPP loan following the outcry.

Atlas Financial Holdings is incorporated in the Cayman Islands, a tax haven. The company, whose leaders are based in Schaumburg, obtained a loan of $ 4,600,500 from Fifth Third Bank to cover 286 employees in various locations.

Faith-based institutions

Faith-based organizations were eligible for P3 loans, and the Sun-Times analysis found that about 475 church groups in Illinois received at least $ 140 million. Some of the groups that get the loans provide social services or run community centers; the list also includes places of worship of various religions. Another 170 religious school operators received at least $ 70 million more.

Obtain between $ 5 and $ 10 million in PPP loans – Lutheran Social Services of Illinois in Des Plaines to cover 500 jobs and Willow Creek Community Church in Barrington for 353 jobs.

Between $ 2 million and $ 5 million – Chicago Jewish Community Centers, for 313 workers; Jewish Child and Family Services, for 250 jobs; Catholic charities of the diocese of Joliet, for 258 employees.

St. Clement Parish located at 642 W. Deming Pl. Is one of many companies that received a P3 loan from the federal government as part of the coronavirus pandemic on Tuesday, July 7, 2020. |  Tyler LaRiviere / Sun-Times

Saint-Clément Parish, located at 642 W. Deming Place, is one of the many beneficiaries of a PPP loan.
Tyler LaRiviere / Sun-Times

In category 1 to $ 2 million – St. Clement Parish, 642 W. Deming, for 92 jobs. This is the largest number of PPP funds received by an individual parish. Most Catholic parishes have taken out loans in the range of $ 150,000 to $ 350,000. In addition, Wheaton Bible Church with 114 jobs; Anshe Emet Synagogue, 3751 N. Broadway, 225 jobs; Apostolic Church of God, 6320 S. Dorchester, 125 jobs.

In the range of $ 350,000 to $ 1 million – Christ the King Parish, 9235 S. Hamilton, 67 jobs.

In the range of $ 150,000 to $ 350,000 – St. Sabina Parish, 1210 W. 78th, with 26 jobs; the Foundation Mosque in Bridgeview, with 94 jobs.

Hotels

$ 2-5 million – Oxford Hotels and Resorts, which operates London House, The Godfrey and Essex Hotel, 455 jobs.

Law firms

$ 5-10 million – Schiff Hardin, 321 jobs.

$ 1 to $ 2 million – Geraci law, 109 workers; Daley and Georges, 26 jobs.

Museums, cultural institutions and others

$ 5-10 million – Field Museum of Natural History, 495 jobs.

The Museum of Contemporary Art located at 220 E. Chicago Ave.  is one of many companies that received a PPP loan from the federal government in connection with the coronavirus pandemic on Tuesday, July 7, 2020. |  Tyler LaRiviere / Sun-Times

The Museum of Contemporary Art, located at 220 E. Chicago Ave., received a PPP loan.
Tyler LaRiviere / Sun-Times

$ 2-5 million – Navy Pier, 462 jobs; Museum of Science and Industry, 453 workers; Shedd Aquarium Society, 435 jobs; Joffrey Ballet, 167 jobs; Morton Arboretum, 331 jobs; Contemporary Art Museum, 249 jobs.

Hospitals and health centers

$ 5-10 million – Jackson Park Hospital Foundation, 481 jobs; Roseland Community Hospital, 429 jobs; Howard Brown Health Center, 4025 N. Sheridan Rd., 498 jobs.

$ 2 to $ 5 million – Loretto Hospital, 400 jobs.

Media, public affairs and public relations

Sun-Times Media Productions, the parent company of the Chicago Sun-Times, $ 2.7 million covering 163 jobs. Between 2 and 5 million dollars – WBEZ, 163 jobs; WTTW, 216 employees; Paddock Publications, 250 jobs; Chicago Review Press, 196 workers.

Kivvit, $ 2.1 million covering 109 workers; Jasculca Terman, $ 411,285 for 24 employees.

Automotive

$ 5 to $ 10 million – Patrick Schaumburg Automobiles, 130 jobs; Motor Werks of Barrington, 346 workers.

Other non-profit organizations

$ 5-10 million – Lawndale Christian Health Center, 466 jobs; Muscular Dystrophy Association, Chicago, 235 employees.

$ 2-5 million – Planned Parenthood of Illinois, 341 jobs; Legal Aid Chicago, 159 jobs.

$ 1 million to $ 2 million – Lambs Farm, 351 jobs.

Various

$ 5-10 million – Mario Tricoci Hair Salon and Spa, Palatine, 500 jobs.

$ 2-5 million – World’s Finest Chocolate Inc, 284 jobs.

Monitoring…

In April, the Sun-Times reported on Devon Bankproblems in transmitting PPP requests from its customers to the Small Business Administration for approval. Since the family bank, headquartered at 6445 N. Western Ave., with branches in Glenview and Wheeling, made relatively few SBA loans, it had to go through a third-party loan provider, which gave the priority to its best customers.

For the second round of PPP loans, David Loundy, chief executive officer, told the Sun-Times on Monday that the bank had succeeded in convincing the SBA to let Devon Bank send requests directly to the SBA. “We have been aggressive in following up” with the SBA, Loundy said. It also helped that PPP loan money was set aside for smaller lenders in the second round, as the big banks gobbled up most of the money in the first round.

According to Federal and Loundy records, Devon Bank made 170 loans for around $ 19 million: 148 loans totaling $ 6 million were less than $ 150,000, with 22 jumbo loans making up the remainder.

“The loans have helped a lot of people. Period, period, ”Loundy said. Devon Bank’s customer base includes many businesses in the communities where the banks are located. And at this point …

Later in April, the Sun-Times reported on the difficulties of Glenwood Dance Studio, 7017 N. Glenwood in East Rogers Park, not far from Devon Bank.

The studio was informed by Chase, its bank, that there were 100,000 applicants ahead of them for PPP loans when its application was first made. Because the loan request was small, Chase didn’t prioritize the dance center and there was no personal banker to help him.

Sandra Verthein, the dance centre’s board chair, told the Sun-Times on Monday that after the story came out, Devon Bank chairman Thomas Olivieri called her, assigned her a bank agent to work with the center on demand – and a PPP loan of $ 5,750 was deposited. on the account of the dance studio a few days later.

In May, the Sun-Times reported the Admiral Theater, a strip club at 3940 W. Lawrence Ave., sued the SBA and the Treasury Department over a rule banning loans to erotic entertainment companies.

The loan request was for $ 406,565. According to Treasury records, Admiral obtained a loan between $ 350,000 and $ 1 million from Belmont Bank on June 3, to cover 43 employees.

About Franklin Cheatham

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