827 Kerr County businesses got federal loans of less than $150,000 to cover pandemic expenses

The federal Paycheck Protection Program was designed to help small businesses navigate the coronavirus pandemic, and the program poured more than $30 million into Kerr County earlier this year. 

In turn, that program helped save more than 3,500 jobs at the 827 small Kerr County businesses that received forgivable loans of $150,000 or less. Most of these businesses employ less than 30 people — many are sole proprietorships. 

In Kerrville, 51 businesses received loans of more than $100,000. The smallest amount received was $527. The largest recipients of the loans were those receiving between $21,000 and $99,000 — 49% of all loans.  There was another 322 that received $20,000 or less from the program. 

Gil Salinas, the chief operating officer of the Kerr Economic Development Corp., said the PPP was a key tool in helping save lots of jobs and small businesses. 

"That program did what it was supposed to do," said Salinas, adding that the program was not without controversy — mostly due to the fact large publicly-owned companies received loans.

"But to be able to say that 3,500 jobs were retained, for a community of 25,000, that's significant," Salinas said. 

Initially, the amount that businesses received was kept secret by the U.S. Treasury Department, but several media organizations sued the government to release the amounts that businesses received. In cases, of those receiving loans of more than $150,000 that was always a matter of public record. 

In total, more than 900 Kerr County businesses received millions in federal aid to battle through the height of the coronavirus pandemic last spring. How to continue that program has been a challenge for lawmakers in Washington, D.C. There was an extension of the popular program earlier this month. Businesses that applied were able to borrow based on the number of full-time employees they had and how many hours they worked. Some of the money could also be used to cover expenses, including the purchase of personal protective equipment. 

In the last disclosure, businesses were expected to fill out basic information that included if they were veteran or minority-owned and how many people they employed. In 89 instances, businesses either failed to mark how many employees they had or wrote down zero. 

WHO GOT WHAT? 

Two companies  — Hager Construction and Kerrville Title Company — received the near-maximum of $150,000, and both employ a total of 31 people. The third biggest recipient was Ranch Radio Group, which employs 15 people, including Kerr County Pct. 1 Commissioner Harley Belew. The group of radio stations received more than $146,000 in funding. 

Several nonprofits and churches were able to receive funding through the program. Zion Lutheran Church, the Dietert Center, Calvary Temple Church and Notre Dame Catholic Church all received more than $100,000 each. Only Zion and the Dietert Center disclosed how many people are employed. Zion Lutheran, which runs a school, has 27 employees, while the Dietert Center listed just three. 

WHAT'S NEXT

For most of these businesses, the loans were forgiven if they could prove that 60% went for payroll. The Treasury Department said it will audit businesses and that received more than $2 million — the largest recipient from Kerr County was Schreiner University — but has not formally said if it will audit those receiving the smaller amounts.