Main Street's mainstays: How some U.S. states tapped crisis loans

FILE PHOTO: Empty restaurant tables sit on a plaza on Pennsylvania Avenue in during the coronavirus outbreak in downtown Washington, U.S. March 31, 2020. REUTERS/Jonathan Ernst/File PhotoTo those who said they had enough cash to wait out the crisis, “I said you are nuts,” Ivory, the chief executive officer of Ivory Homes, recounted in a recent webinar at the David Eccles School of Business at the University of Utah.

A new tranche of $310 billion was expected to be authorized by Congress on Thursday after complaints the first round did not reach the country’s most fragile businesses - the local restaurants, artisan shops and bespoke retailers that keep the country’s Main Streets distinct.Nonetheless, it apparently did hit the country’s industrial core, and that may have had as much to do about organization and networking as size.

Getting a $100,000 SBA loan wasn’t smooth, said Taylor, the granddaughter of the company’s founder. But it came through, and “We’ll be using the money to cover eight weeks of payroll, payroll taxes, health insurance and our IRA plan,” she said. “That will give us a little left to pay some utility bills.”

Based on pre-crisis employment levels, it appears that hotel and restaurants borrowed less than expected from the SBA. But they also shed more than 440,000 workers in March alone, and Goldman found hotels and restaurants actually ended up borrowing the highest percentage of any industry against the expenses eligible for loan forgiveness.

Manufacturing and construction also stood out, Goldman noted. Construction firms borrowed nearly $45 billion, about 64% of forgivable expenses compared with a national average of around 46%; factory owners borrowed about 54%.Though the SBA did not show borrowing by industry in each state, comparisons of industry intensity and payroll size point to some conclusions.

hpschneider TimAeppel

hpschneider TimAeppel

hpschneider TimAeppel

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