Danville Metal Stamping’s $6.25 million Payroll Protection Program loan has helped keep the business running and about 475 people employed.
It’s one of the local businesses which has received a PPP loan.
About 55 Danville businesses, and totaling about 75 in Vermilion County and nearby Indiana, received more than $150,000 each in Payroll Protection Program loans through the U.S. Treasury.
The PPP loans were to help businesses stay open and keep people employed due to the coronavirus pandemic.
The loans can be forgiven if businesses mostly use the money to continue paying workers. The program initially was set to expire June 30 but was extended to Aug. 8, with $132 billion reportedly still available.
A U.S. government list earlier this week identified roughly 650,000 mostly small businesses and nonprofits that received taxpayer money from the federal program.
The top tier of recipients received $5 million to $10 million.
Locally, Danville Metal Stamping Co., an aircraft engine and engine parts manufacturer with 476 workers listed as of February, was in that top tier.
“We have not had any furloughs and no layoffs,” said Danville Metal Stamping President and Chief Executive Officer Judd Peck.
Peck said a couple employees may have left for various reasons, but they’ve also hired a couple.
He too said they’ve let people stay home if they were uncomfortable coming to work due to the coronavirus pandemic.
“We are an essential business,” Peck said. “We’ve stayed open throughout.”
He also commended their “terrific workforce” and those who appreciate their jobs and being there for their customers.
Danville Metal Stamping produces metal components for the aerospace and gas turbine industries. The business makes gas turbine engines for military and commercial airplanes.
“We are seeing orders drop off. We expect to see a lot more of that,” Peck said, talking about cutbacks such as with Boeing and Airbus.
“On the commercial side, we’ve not really seen the bottom yet,” he said of that being approximately 70 percent of Danville Metal Stamping’s business.
“That’s going to be huge. It’s not going to be short,” he said about the longer-term impact.
Peck said they’re impacted by new airplanes not being delivered and existing planes not flying as much.
He said the company isn’t projecting any employee layoffs, but he said questions remain for the future.
“Things were going gangbusters in the air...,” Peck said about the travel market prior to COVID-19. “We still have a fair amount of backlog to work through.”
“We certainly work hard. We’re a local owned company, and a big part of our purpose is to give jobs where (employees can) do satisfying work,” Peck said. “We’re happy to have been able to stay open through all this. We’re thankful for the PPP loan to keep people working.”
Other local companies receiving PPP loans:
• In the $2 million to $5 million tier is Mervis Industries Inc. The number of workers was not listed for the recyclable material, merchant wholesalers business. According to Vermilion Advantage, there are 240 employees between Illini Castings and Mervis Industries.
• In the $1 million to $2 million tier is Crosspoint Human Service with 126 employees listed; Greenwood Inc. plastics company with 122 employees; Group 2029 Inc., whose president is Maruti Seth, in the fastfood business and which owns the local Burger King restaurants, listed with 250 workers; Steel Grip Inc. with 156 listed workers; and Full-Fill Industries LLC of Henning with 160 workers.
• In the $350,000 to $1 million tier: AII Holding Inc. (Automation International Inc.) for welding and soldering equipment manufacturing with 47 employees; American Event Services, air conditionings/heating/refrigeration equipment manufacturing, with 43 employees; Carmack Car Capitol with 51 employees; Champaign-Danville Grain Inspection Depts. Inc. of Urbana with 60 employees; Chittick Family Eyecare with 65 employees; Danville Operations LLC (Arcadia Care formerly called Danville Care Center), nursing care facilities, with 140 employees; Danville Polyclinic, physician offices except mental health specialists, with 26 employees; Dawson Group Inc. with 83 employees; Diveley Development Corp. (Jocko’s Pizza and Lee’s Family Chicken) with 110 employees; DND Witzel Management Co. Inc. (local McDonald’s) with 327 employees; Gardenview Manor LLC with 92 employees; Goodloe E. Moore Inc. (GEMCO), insulation fastener manufacturing, with 35 employees; Illini Drilled Foundations, site preparation contractors, with 32 employees; L.L. Parks Livestock Inc. with 79 employees; Lakeview College of Nursing with 38 employees; Mosser’s Shoes Inc. with no workers listed; Ray O’Herron Inc., linen supply, with 64 workers listed; Schomburg & Schomburg Construction with 65 workers listed; Terminix Services Inc. with 54 employees; Hoopeston Retirement Village Foundation with 101 workers; Central Illinois Scale Co. of Tilton with 23 employees; Midwest Asphalt Co. of Tilton with 30 employees; Midwest Auto Dealers LLC of Tilton with 54 employees; 4 Corners Insurance Agency LLC in Rankin with three workers; Georgetown Wood and Pallet Co. inc. with 65 workers; and Dynachem Inc. of Westville with 60 workers.
• In the $150,000 to $350,000 tier: Bill Smith Auto Parts Inc. with 30 workers; Bowman Estates Limited Partnership with 47 employees; Bryant Auto Parts and Recycling Inc. with 33 employees; CRIS (Community Research Resource Information Services for seniors) Healthy-Aging Center with 44 employees; CORE 10 LLC (Central States Distribution Service), general warehousing and storage, with 20 employees; Courtesy Ford, Lincoln Inc. with 38 employees; Courtesy Motors LLC (general automotive repair) with 17 employees; Danville Wings 2 LLC (Buffalo Wild Wings) with 57 employees; Digital Hearing Aids Inc. with 24 employees; Double S Liquid Feed Services Inc. with 14 employees; G and KK Inc. (Napa Auto Parts) with 33 employees; Illini Casting LLC with 24 employees; JP Excavating and Trucking Inc. with 10 employees; Leatherneck Hardware Inc. with a number of workers not listed (Leatherneck has 24 employees, according to Vermilion Advantage); Liquid Feed Transport Inc. with 17 workers; Marble Machine Inc. with 14 workers; Nexlan LLC with nine workers; Owens Excavating and Trucking LLC with 25 workers; Parks Livestock Inc. with 13 employees; Parks of Iowa L.C. with 20 workers: Polyclinic Pharmacy Inc. with 18 workers; Prairie States Warehouse Inc. with 19 workers; Schlarman Academy with 35 employees; Second Church of Christ with 21 employees; Spiros Law P.C. with 28 employees; Towne Machine Tool Co. with 18 workers; Tridan International Inc. with 22 workers; Vermilion Millworks LLC with 26 workers; Walker Place (farm and garden machinery and equipment merchants wholesalers) with 14 workers; WorkSource Enterprises not-for-profit (vocational rehabilitation services) with 40 employees; Carnaghi Towing and Repair Inc. of Tilton with 25 employees; Daniel L. Ribbe Trucking Inc. of Tilton with 15 employees; Todd’s Auto Body LTD. of Tilton with 22 employees; Central Illinois Production LLC of Fairmount with 15 workers; Vernon Rohrscheib (corn farming) in Fairmount with 15 workers; Procomm Inc. of Hoopeston with 30 employees; Quick Lube in Hoopeston with 40 employees; Norton Machine LLC of Rossville with 14 workers; and E.R.H. Enterprises Inc. of Westville with 38 employees.
• In Covington, Ind., businesses approved for $350,000 to $1 million PPP loans: Beef House with 71 jobs to be retained, The Waters of Covington with 112 jobs and Sentry Roofing with 37 jobs.
As of June 30, the Paycheck Protection Program had handed out $521 billion. The Treasury Department identified just a fraction of the total borrowers earlier this week, naming only companies that got more than $150,000. Those firms made up less than 15 percent of the nearly 5 million small companies and organizations that received loans, according to the Associated Press.
Employers added 7.5 million jobs in May and June, a solid increase that was probably driven in part by the PPP. The economy still has nearly 15 million fewer jobs than before the pandemic, according to the Associated Press.
The Assocated Press reports, research by the Federal Reserve found that companies with fewer than 50 workers before the pandemic saw their hiring rise 12% in May, while jobs grew just 5% in larger firms, suggesting PPP helped fuel rehiring.
But the program was only intended to carry the economy through a short interruption from the pandemic, which is now threatening to have a longer-lasting impact. The Treasury Department initially required the loans to be spent within eight weeks of being received, though that was later extended to 24 weeks.
A survey by the National Federation of Independent Business found that as of mid-June, 14% of small businesses that borrowed from the PPP expected they would have to lay off some workers when their loan ran out.
The program provided loans of up to $10 million for small businesses to help them recover from the government-ordered shutdowns and revenue losses caused by the virus. The average loan amount for the entire program was $107,000, the Treasury Department said in a broad summary of the program.
The recipients employed 51 million people before the pandemic began, Treasury Secretary Steven Mnuchin said. That amounts to about 85% of all workers at companies with fewer than 500 employees. The government will not know how many of these jobs were actually saved until companies apply to have the loans forgiven, a process that is just beginning.