![]() ![]() Since borrowers had to spend less of the loan on That 60% of a loan go toward workers’ pay, and the covered period wasĮxtended to 24 weeks. Qualified as well, because Congress changed the rules.īusinesses protested that they couldn’t spend their PPP money fastĮnough in a stalled economy, the legislation was amended to require only The PPP loan passed before layoffs occurred, allowing the companies to Since the maximum PPP loan amount was for 2.5 times companies’Īverage monthly payroll in 2019, that should have guaranteed that wagesĪnd hours could be maintained, as required by the CARES Act.Īnd some other borrowers, the original eight-week “covered period” of Required borrowers to spend 75% of the funds on payroll over eight Spokesperson Rhandi Berndt said that “the closure was the result of market forces” and declined to answer further questions.īe forgiven, the federal Small Business Administration initially The company declined to comment.Ĭanadian-owned Supreme Steel took $1.69 million in May 2020 for its plant in Portland, Oregon, which it closed five months later, terminating 112 employees. ![]() Workers and the government forgave the loan, while the company’s assetsĪ Nebraska aircraft parts manufacturer called Royal Engineered Composites was approved for $2.74 million in April 2020 in order to support 250 jobs, but laid off 99 workers by mid-May. Its bankruptcy trustee John Munding said the money was used to pay Stretched the definition of what qualifies as a small business.Ī paper mill in northeast Washington state called Ponderay Newsprint, for example, went bankrupt and laid offġ50 workers, two months after being approved for a $3.46 million loan. The law also contained many exemptions that The Congress established the PPP as part of the CARES Act in March 2020,Īnd the law was later amended to allow more of the money to be used for The regulations changed frequently in the months after May have complied with program rules, which put a premium on getting Terminated more than 50 workers in 2020 after their aid was approved. ![]() That applied for more than a million dollars apiece in PPP loans Which the federal government provides to workers whose jobs haveĭisappeared due to imports, shows that at least half a dozen companies An analysis of applications for trade adjustment assistance, Protection Program loan and then laid off a substantial chunk of its The only large company to have taken out a multimillion-dollar Paycheck “But the whole time, it was a setup, we were gone.” “When the Mexican plant opened, we were told at the beginning they would just be helping Shoals and making parts for the trains,” said Bulman, who worked at the Alabama plant for seven years before getting laid off last year. ![]() Producing while company officials got ready to shut it down. Thinks the $10 million just helped FreightCar’s Shoals plant keep Jim Meyer, FreightCar America’s CEO, told ProPublica in an email that he had not intended to shutter the plant when he received the PPP money, and that it had allowed the company to keep workers on the job through most of 2020 despite a sharp dropoff in new orders. Managers announced that all production would move to FreightCar’s newįacility in Mexico, which meant most of the assembled workers would lose Some had believed the funds would keep the doors open for a little while longer. Only a few months earlier, the publicly traded company had received a $10 million Paycheck Protection Program Loan - the maximum amount available under a pandemic relief program designed to keep workers employed. Near Muscle Shoals, Alabama, to tell them that the plant was closingįor some employees, the news wasn’t a shock: They’d been hearing rumors that management would move the work elsewhere for years. Late last summer, after churning along through the pandemic with only a two-week pause, managers at FreightCar AmericaĬalled hundreds of workers into the break area at the company’s factory ![]()
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