St. Mary PPP borrowing topped $88 million

Businesses with St. Mary Parish addresses received more than $88 million under the federal Paycheck Protection Program, designed to provide forgivable loans to businesses that agreed to keep workers on their payrolls during the COVID-19 economic slump.
The number of jobs that the borrowers said they were supporting with the loans exceeds 7,100, a number equal to about one-third of the parish’s workforce before the pandemic.
The Daily Review reported in July that employers with St. Mary addresses had borrowed at least $50 million. That was based on a Small Business Administration data release that reported loans in ranges. We calculated the total based on the minimum amount in the range for each loan.
Last week, obeying a court ruling, the SBA released data with specific amounts for each loan of at least $150,000. The loans are forgivable under some circumstances that encourage employers to keep their employees at work.
The loans were administered through local banks. The program stopped taking applications in August.
At least 21 St. Mary businesses borrowed at least $1 million.
Gravois Aluminum Boats LLC of Franklin was the biggest single borrower. Gravois borrowed just less than $9.2 million through Regions Bank to protect 499 jobs.
Five corporate entities under the umbrella of B&G Food Enterprises Inc. of Morgan City, a major owner of restaurants on the Gulf Coast, together borrowed about $10.7 million from b1Bank. B&G Food Enterprises, B&G Food Enterprises of Texas and B&G Capital and Gulf Coast ventures each listed 500 as the number of jobs their loans will protect. B&G Lafayette Ventures and B&G Diversified Concepts together listed 193 jobs.
Other big names and big loans:
—Conrad Industries Inc. of Morgan City, which borrowed about $8 million through Whitney with 473 jobs on the line.
—Allison Marine Holdings of Morgan City borrowed $5.1 million through JD Bank. The number of jobs it sought to protect was not listed.
—Central Boat Rentals of Berwick borrowed $2.8 million through Hancock Whitney to protect 209 jobs.
—Gulf South Services of Morgan City borrowed $2.4 million through Lamar National Bank for 103 jobs.
—The Teche Action Board Inc., which oversees Teche Action Clinic, borrowed $2.1 million through Patterson State Bank for 198 jobs.
—LAD Services of Louisiana LLC, the company operated by Morgan City Mayor-elect Lee Dragna, borrowed $2.1 million through Patterson State Bank. The loan data doesn’t include the number of jobs involved, but Dragna said at a forum before the election that his company has grown to 200 employees.
The impact of the Paycheck Protection Program on St. Mary would be hard to estimate. The 7,100 jobs in the latest data release include employees who live outside the parish, and it doesn’t include St. Mary workers who have jobs in Houma or elsewhere outside the parish.
But the PPP was a lifeline when the parish needed it.
In February, the month before Gov. John Bel Edwards’ stay-at-home order and school closures, total nonfarm employment in St. Mary was just less than 21,000. By June, about 2,000 jobs had disappeared.
Unemployment hit 15% in May, was down to 9.2% by September but climbed to 10.5% again in October.
An analysis by the Business.org news website found that Louisiana’s gross domestic product shrank 13.4% between the fourth quarter of 2019 and the second quarter of 2020. The Louisiana mining sector, which includes oil and gas extraction, shrank by 56.5%, the website said.
The program has generated some controversy over the distribution of loans. The Washington Post analysis says much of the money went to big borrowers — so much so that 50% of the money went to 5% of the borrowers.
But the Hill newspaper describes the PPP as one of the few programs that appeals to congressional Democrats and Republicans alike. Amounts from $288 billion to $900 billion are under discussion.