The federal Paycheck Protection Program awarded roughly $122 million to more than 360 nonprofits in San Jose this past year to weather the pandemic, according to recent data from the Small Business Administration.
As COVID-19 shuttered social gatherings and in-person services, local nonprofit leaders said the loans were vital to prevent layoffs and cuts to programming.
“Getting the loan… and having it forgiven (was) helpful,” said Deanna Chevas, administrative manager of Silicon Valley Bicycle Coalition. “We’re in good financial position now because of the PPP loan and our donors.”
Businesses and nonprofits can use PPP funding to cover payroll costs, mortgage or rent payments, utilities or worker protection costs related to COVID-19, according to the SBA. The federal program supported at least 11,231 nonprofit jobs in San Jose, as 97% of all loan monies went to retaining employees, the data shows.
In comparison, companies and businesses in San Jose received more than $2 billion in PPP loans, with full service restaurants getting the most money.
About 30 local nonprofits—including clinics, schools and places of worship—received more than $1 million in loans. That totals approximately $69 million and accounts for more than half of all approved loans to San Jose nonprofits.
About 40 organizations received between $350,000 and $1 million. More than 80% of all approved loans were under $350,000.
The Silicon Valley Bicycle Coalition applied twice before receiving a PPP loan, Executive Director Shiloh Ballard told San José Spotlight. The group had to lay off some workers and cut back on programs at the beginning of the pandemic. All employees took a pay cut or reduced hours, Chevas said.
The organization has since brought workers back with the PPP money. It received roughly $300,000 through two loans to retain 11 workers, data shows.
“It’s really been a roller coaster,” Ballard said.
Momentum for Health, Foothill Health Center (now Bay Area Community Health), and Catholic Charities of Santa Clara County received the three highest payouts for nonprofits in the city. They preserved 1,285 jobs collectively, according to the data.
K-12 schools received the most PPP money out of all industries, followed by places of worship— $21 million and $11 million in total, respectively.
As of July 1, the SBA has forgiven almost half of all loans to San Jose nonprofits, according to the data.
Here’s a look at the 10 nonprofits that received the most PPP assistance in San Jose. All organizations on the list either did not respond to requests for comment or were not immediately available for comment.
Momentum for Health—mental health services
Loan amount: $7,852,005
Jobs: 450
Amount forgiven (includes any accrued interest): Not available
Foothill Health Center (Bay Area Community Health)—community health center
Loan amount: $6,290,700
Jobs: 355
Amount forgiven (includes any accrued interest): $6,363,086
Catholic Charities of Santa Clara County—social services organization
Loan amount: $4,899,900
Jobs: 480
Amount forgiven (includes any accrued interest): Not available
Center for Employment Training—trade school
Loan amount: $4,757,852
Jobs: 475
Amount forgiven (includes any accrued interest): $2,687,326
Indian Health Center of Santa Clara Valley—health clinic
Loan amount: $4,377,300
Jobs: 254
Amount forgiven (includes any accrued interest): $4,426,110
Presentation High School—private high school
Loan amount: $3,800,000
Jobs: 114
Amount forgiven (includes any accrued interest): $1,816,027
Across The Bridge Foundation (Downtown College Prep)—charter school
Loan amount: $2,836,800
Jobs: 166
Amount forgiven (includes any accrued interest): Not available
Accion Opportunity Fund—financial services
Loan amount: $2,556,948
Jobs: 124
Amount forgiven (includes any accrued interest): Not available
The Foundation for Hispanic Education—charter schools
Loan amount: $2,505,358
Jobs: 91
Amount forgiven (includes any accrued interest): $1,420,528
Second Harvest of Silicon Valley—food bank
Loan amount: $2,500,000
Jobs: 211
Amount forgiven (includes any accrued interest): $2,527,603
Contact Tran Nguyen at [email protected] or follow @nguyenntrann on Twitter.
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