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San Jose businesses received more than $2.3 billion in federal funding to keep workers on the job during the COVID-19 pandemic.
The Small Business Administration (SBA) approved more than 11.8 million loans through three rounds of Paycheck Protection Program applications, with California having the most loan money approved out of any state, according to federal data.
San Jose received the most PPP money in Santa Clara County, with almost 25,000 approved applications, an analysis by San José Spotlight shows.
“The PPP has been lifesaving,” said Scott Knies, director of the San Jose Downtown Association. “Our members were very grateful for it (because) a lot of their businesses just went ‘poof’ during the pandemic.”
Three businesses received $10 million in loans to retain a combined 1,324 employees: United Mechanical, an HVAC company; Quantum Corporation, a data storage company; and Velodyne Lidar, a laser sensors company. The federal program forgave the loans to United Mechanical and Velodyne Lidar at the end of June.
United Mechanical and Quantum Corporation did not respond to San José Spotlight’s requests for comment. Velodyne Lidar declined to comment.
Approximately 330 applications in San Jose received more than $1 million in loans, data shows. Many businesses applied for paycheck protection more than once, according to the analysis. In one case, a local Panera Bread franchisee received roughly $5 million through two applications.
Restaurants accounted for the largest percentage of approved dollars at $132 million, about 5.6% of the total amount of loans given to all San Jose businesses. Dental clinics came in at a distant second, with a total of $64 million in loan money.
Other industries hit hard by shutdown orders, such as hotels, did not make the top 10 list.
“If you look at our downtown, there are 200 places to eat, but we have six or seven hotels,” Knies said. “Other industries (on the list) employ a lot of people, and that was a criteria for the loans.”
As of July 1, the SBA has forgiven a total of $1 billion in loans to San Jose businesses, according to the data. About a quarter of a million San Jose employees retained their jobs because of paycheck protection funding.
Here’s a look at the 10 industries that received the most PPP assistance in San Jose:
Full-service restaurants
Total amount: $132,239,071
Average loan: $133,710
Number of loans approved: 989
Top 3 loans:
O.M., Inc. (owner of the local chain Aqui restaurants): $4 million
Luna Mexican Kitchen: $3.4 million
Pangenera, LLC (a Panera Bread franchisee): $2 million
Dental clinics
Total amount: $64,103,646
Average loan: $67,978
Number of approved loans: 943
Top 3 loans:
Dalvir Pannu, D.D.S, Inc.: $592,400
Innovative Dental of Silicon Valley: $439,500
Phelps & Cohen Orthodontics: $816,580
Computer programming services
Total amount: $57,478,334
Average loan: $226,293
Number of loans approved: 254
Top 3 loans:
Photon Infotech Inc.: $7,110,345
Flexton Inc.: $2,675,000
InterraIT, Inc.: $2,240,000
Plumbing, heating, and air-conditioning contractors
Total amount: $51,586,358
Average loan: $255,378
Number of approved loans: 202
Top 3 loans:
United Mechanical: $10 million
ICOM Mechanical: $5,025,705
All Temperature Service: $1,884,483
Law offices
Total amount: $51,448,919
Average loan: $90,899
Number of approved loans: 566
Top 3 loans:
Hopkins & Carley: $4,394,000
Berliner Cohen LLP: $1,618,200
Law Foundation of Silicon Valley: $1,444,504
Limited service restaurants (to-go)
Total amount: $50,353,751
Average loan: $109,943
Number of approved loans: 458
Top 3 loans:
Cam-Bas Inc (McDonald's franchise): $4,458,700
Pangenera, LLC (Panera Bread franchise): $2,967,090
Henley Restaurants (McDonald's franchise): $1,905,500
Computer systems design services
Total amount: $50,088,900
Average loan: $265,021
Number of approved loans: 189
Top 3 loans:
Red Oak Technologies: $3,044,347
T3C Inc.: $2,925,162
Jade Global: $2.913,331
Engineering
Total amount: $45,008,037
Average loan: $255,727
Number of approved loans: 176
Top 3 loans:
Ryzen Solutions: $6,423,010
Structural Integrity Associates: $4,570,300
Mark Thomas: $4,042,600
Electrical contractors and other wiring installation contractors
Total amount: $42,455,998
Average loan: $244,000
Number of loans approved: 174
Top 3 loans:
CH Reynolds Electric: $5,088,648
New Age Electric: $4,052,495
RFI Communications & Security Systems: $3,202,400
Offices of physicians (except mental health services)
Total amount: $37,675,348
Average loan: $80,160
Number of approved loans: 470
Top 3 loans:
NMCI Medical Clinic: $2,369,472
Action Urgent Care: $1,952,961
San Jose Medical Clinic: $1,898,744
Contact Tran Nguyen at [email protected] or follow @nguyenntrann on Twitter.
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