A total of 99 businesses in Montgomery were among the roughly 650,000 businesses and nonprofit organizations that received forgivable loans this spring under the U.S. Small Business Administration's Paycheck Protection Program (PPP).
Village businesses borrowed a total of $7,417,075 to assist them in keeping 1,192 workers on the payroll through the economic shutdown resulting from the COVID-19 pandemic.
Loans awarded to businesses in the village's 60538 zip code ranged in size from $26,875 to $137,900.
The SBA withheld the names of firms that received loans less than $150,000.
Charlene Coulombe-Fiore, executive director of the Montgomery Economic Development Commission, said Tuesday she is excited that so many village businesses were able to secure PPP loans.
"It means our hard work paid off," she said.
Coulombe-Fiore noted that with the support of village officials she worked with local lending institutions to assist local businesses through the shutdown this spring.
"Everyone pulled together and worked really hard to help our businesses," she noted. "Some were stronger than others as far as understanding the complex nature of the applications. It shows the intent of the business to stay open and want to keep their employees. These numbers make me excited because it shows that the work was worth it and hopefully it is enough to help keep our businesses open and surviving."
Denny Lee, a village trustee and member of the MEDC Board of Directors, said he has talked with many local business owners and they have been appreciative of the financial assistance offered by the village, state and federal governments.
"They've told me it really helped," Lee said of the business owners. "I know that any help we can give these businesses at this time, especially the small ones, is good."
According to the Associated Press, as of June 30 the PPP program had loaned $521 billion to businesses across the country.
In a statement, U.S. Secretary of the Treasury Steven T. Mnuchin, noted the average size of PPP loans is approximately $100,000 "demonstrating that the program is serving the smallest of businesses."
Mnuchin added, “Today’s release of loan data strikes the appropriate balance of providing the American people with transparency, while protecting sensitive payroll and personal income information of small businesses, sole proprietors, and independent contractors.”
In addition to the PPP loan program, the village offered local businesses, grants of up to $5,000 through a Small Business COVID-19 grant program.
To qualify for the grants, the village required businesses to be located in the village, have at least one full-time employee, but not more than 50, and have been in business for at least one year. The village also required the businesses to provide documentation that shows the grants will be spent on payroll, rent or mortgage payments, utilities, inventory or other like operational expenses within 90 days of the receipt of the funds.
The board allocated $200,000 to fund the program and approved the issuance of the 40th and final grant for the program during a meeting June 8