Waste industry received at least $ 583 million in PPP loans and saved 67,000 jobs
Editor’s Note: Waste Dive released a new look at the waste industry’s PPP allocations in December after the U.S. Small Business Administration released more detailed data on loan amounts. you can find it here.
Data released by the U.S. Small Business Administration (SBA) shows that thousands of waste and recycling businesses and organizations have applied for loans through the Paycheque Protection Program (PPP), receiving between $ 583.7 million and over $ 1.2 billion in subsequent payments.
This program is part of the coronavirus relief program passed by Congress and aims to provide small businesses with the financing necessary to maintain payrolls and hire laid-off employees, in addition to covering certain other operational costs. Data indicates that the program has played an important role in retaining jobs for the waste industry – reported figures show that over 67,000 jobs have been retained through these loans.
Industry stakeholders told Waste Dive the money helped keep operations going during a global crisis, when waste management services were deemed essential. Even so, some say that navigating the process has been complex and slow. Their experiences with the program and the level of business interest give some idea of what navigating the financial impacts of the pandemic has been so far for qualified industry participants.
Data shows PPP helped protect jobs
As of June 30, PPP has made nearly 4.9 million forgivable loans in total, for a total of more than $ 521 billion. Borrowers are capped at $ 10 million, but the average loan amount to date is around $ 107,000, according to recent data. Only the names of borrowers with more than $ 150,000 in loans have been released.
The SBA uses the North American Industry Classification System (NAICS) and its data shows that more than half of all P3 loans have gone to a small group of industries that do not include waste. Earlier data released by the SBA indicated that waste management companies received stimulus money, but the broad coding used did not make it possible to know how much of this funding had been specifically devoted to the solid waste and recycling sector.
New data shows that businesses classified under NAICS codes for solid waste collection, solid waste incinerators, FRMs and solid waste landfills have received nearly 4,000 total loans as of June 30.
|Applicant’s NAICS code||Percentage of requests|
|Solid waste collection (562111)||60.34%|
|Material recovery facilities (562920)||28.58%|
|Landfill of solid waste (562212)||10.22%|
|Solid waste combustors and incinerators (562213)||0.86%|
Since total loan amounts are shown in ranges for recipients over $ 150,000, the exact breakdowns are not clear. Over 86% of all loans were for that amount or less; the waste industry, however, has tended to slightly larger loans, with a lower percentage – almost 72% – of industry loans falling in this range.
Nearly 2,860 waste and recycling applicants received loans less than $ 150,000, totaling just over $ 139 million, and over 600 applicants received loans between $ 150,000 and $ 350,000. 374 other companies received more than this amount, but less than $ 1 million. And 85 companies received between $ 1 million and $ 2 million, followed by 49 companies which received between $ 2 million and $ 5 million. Only eight companies received the maximum amount.
|Society||State||Amount of the loan||Jobs retained|
|California Waste Solutions Inc.||California||$ 5-10 million||295|
|Garaventa Enterprises, Inc.||California||$ 5-10 million||417|
|Patriot Environmental Services, Inc.||California||$ 5-10 million||367|
|Rubicon Global, LLC||Georgia||$ 5-10 million||290|
|Homewood Disposal Services||HE||$ 5-10 million||276|
|JRM Transportation and Recycling Services, Inc.||MY||$ 5-10 million||250|
|Royal Waste Services Inc.||New York||$ 5-10 million||401|
|Meridian Waste Acquisitions LLC||NC||$ 5-10 million||384|
Most of these companies did not respond to a request for comment from Waste Dive on how the funds were used or their experiences with the process.
Rubicon general counsel William Meyer said in a statement the company has requested funding to preserve jobs during a time of increased need for services.
“[W]We were encouraged by the opportunity to participate in this program with the goal of retaining our valued employees during this unprecedented time, ensuring that our network of over 7,000 small business transportation partners could continue to receive payment for their waste and recycling services, ”said Meyer, whose company said it will keep 290 jobs thanks to its loan.
Rubicon is grateful to lawmakers for “working together to implement this program to ensure that frontline workers in the waste and recycling industry have been able to find relief,” he added.
Maintaining employment was also essential for other stakeholders in the sector. While more than 300 companies reported no retention associated with their loans, more than 3,000 said the funds helped them save between one and 500 jobs.
The PPP criteria have excluded many of the industry’s largest employers, but the list of beneficiaries includes major regional companies as well as a notable trade group. The Solid Waste Association of North America (SWANA) received a loan in the range of $ 350,000 to $ 1 million, and CEO David Biderman told Waste Dive that “prudent financial management” helped SWANA to avoid layoffs in the spring.
“We intend to use the PPP loan to cover eligible expenses over the next few months, like many other associations, and help us continue to provide the cutting-edge programs and services on which it is built. the solid waste industry of the private and public sectors. Biderman said.
Where are the applicants and how they navigated the program
SBA data also shows where aid has gone to the waste industry. California, Texas, Georgia and New York were among the states with the most loans, reflecting the size of the population and, in some cases, where business declined the most in the early months of the pandemic. New Jersey and Pennsylvania also had high numbers, while smaller states like Vermont and Rhode Island got fewer than 20 loans each.
Most applicants did not provide information on gender, race and ethnicity or veteran status, but when the data does come out, the data shows that loans over $ 150,000 more often went to businesses whose white male owners are not veterans. The numbers are similar for smaller loan recipients, reflecting ownership trends in the industry. The businesses listed as black-owned collectively received 12 loans under $ 150,000 and three loans between $ 150,000 and $ 350,000. Only one black-owned publicly traded company has received a loan between $ 350,000 and $ 1 million – Knight Waste Services, based in Fort Worth, Texas.
Despite the benefit statement, PPP applicants encountered difficulties in applying. Several small waste management companies have shared their experiences with Waste Dive over the past few months and expressed frustration with the length of time required, as well as mixed messages from banks and government.
When the program initially ran out of money in April, a candidate said she was told funding had run out, only to be notified later that her application had been approved. Another said she applied to make sure her only employee could stay on staff. She said she struggled with the settings and language used around the program when applying in April. The funds finally appeared in his account in May, weeks after the process began.
Biderman also reported a lull between SWANA’s request and receipt of funds.
“Although we initially submitted our loan application in April, our lender did not notify us that the loan was being processed until the end of June and did not receive any PPP money until last week,” he said. -he declares.
What happens after
A wave of reopenings across the country has resulted in a return to normal operations for some closed MRFs, as well as an apparent increase in business for some carriers serving the commercial sector. But an increase in COVID-19 cases across the Sun Belt in states like Texas, Florida and Arizona has raised concerns. California and Oregon reimposed restrictions in some areas, restricting dining at restaurants and other activities.
While some of the industry’s largest companies have expressed optimism about the business outlook, state actions could herald a turbulent few months for smaller waste management companies, reeling from downward trends over the past decade. first semester.
In early July, President Donald Trump signed an extension of the PPP, giving Congress five more weeks until August 8 to stop a plan to help small businesses. At the time of this extension, some $ 130 billion in PPP loans had not been spent, potentially leaving new opportunities for operators in the waste and recycling industry to apply.
PPP could also take a different form in the future. Treasury Secretary Steve Mnuchin has indicated that certain industries may be given priority in another round of aid, such as catering establishments or hotels. Meanwhile, some Democrats are advancing a measurement which would give priority to companies with 100 or fewer employees and suffering significant revenue losses linked to the pandemic.
What any of these proposals might mean for the waste industry is unclear, although Biderman and other stakeholders have expressed gratitude for the opportunity to seek help through PPP.
“It is my fervent hope that the second half of 2020 marks a return to normal, or at least the ‘new normal’,” he said.
If you would like to share any feedback on the PPP application process, or this early data on the waste and recycling industry, please contact us at [email protected]