More than 10,000 Scottsdale businesses have received federal Payment Protection Program loans, documents show, ranging from a few thousand dollars up to, potentially, $10 million.
Meanwhile, 4,744 Scottsdale workers have been given notice of mass-layoffs between March 1 and Aug. 4.
Popular restaurants, Oreganos Bistro and PF Changs, are two of 15 total Scottsdale businesses that received between $5 million and $10 million in PPP loans. Further, companies ranging from the Phoenix Rising to Barrett-Jackson Auto Auctions, to your favorite sushi restaurant, schools and churches received funds in some amount to shoulder operating costs during COVID-19.
In addition to the reported federal funds, the Scottsdale Industrial Development Authority provided 34 businesses with $5,000 grants, IDA President Shannon Scutari says.
Simultaneously, two dozen local businesses have announced intentions to lay-off employees --- however, it is unknown how many Scottsdale companies have actually closed their doors for good.
In Scottsdale, the city, the economic development department and the local Chamber of Commerce, were unable to provide this information.
Further, the Arizona Department of Revenue cited state statutes in response to a records request for a list of businesses that have closed within bounds of Scottsdale city limits.
While a business is required to cancel its transaction privilege tax license with ADOR to avoid penalties and interest on non-filed tax returns, access to this information is protected by state law.
A spokesperson for the ADOR cited an Arizona Revised Statute, prohibiting the disclosure of private taxpayer information, including which businesses closed in Scottsdale.
So while the status of businesses in trouble remains unknown, it is known that 10,349 businesses received federal PPP dollars, the data from the U.S. Small Business Administration shows. Companies who received more than $150,000 are identified by business name and address; meanwhile the lesser category doesn’t disclose details.
One company who received $37,500 is a veteran- and male-owned limited liability corporation, in the 85255 ZIP code, who retained 12 employees with the funds received.
A woman-owned LLC in the 85262 ZIP code, received $141,844, which helped retain 26 employees.
The PPP business loans are broken down into two categories:
The deadline to apply for a PPP loan is Aug. 8, sba.gov says.
They Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
The U.S. Small Business Administration will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.
Guidelines to apply for a PPP loan include any small business that meets the SBA’s size standards; sole proprietors, independent contractors and self-employed persons; and any businesses, nonprofit organization, veterans organization or tribal business concern with more than 500 employees.
There were 1,481 companies based in Scottsdale who received more than $150,000 in federal funds through the PPP loan.
Loans are in categories of $150,000-$300,000; $350,000-$1 million; $1 million-$2 million; $2 million-$5 million; and $5 million-$10 million.
Fifteen companies received between $5 million-$10 million loan. They include:
Next, there are 59 businesses who received loans ranging between $2 million to $5 million.
These companies include: Chapman Scottsdale Autoplex LLC; Omni Montelucia LLC --- which is technically in the Town of Paradise Valley, but has a Scottsdale address --- Scottsdale Plaza Resort; The Joint Corporation; and Wildflower Bread Company.
There are 110 companies who received loans between $1 million to $2 million, including the Jewish Community Association of Greater Phoenix.
Other companies in this category are Senior Living Services LLC; Stockdale Management LLC; OdySea Aquarium; Ocean 44 Scottsdale; Notre Dame Preparatory; Chapman Ford LLC; Barrett-Jackson Auction Company LLC; and AR Mays Construction Inc.
Next, 428 Scottsdale businesses received between $350,000 to $1 million in PPP loans.
These companies include Our Lady of Perpetual Help Roman Catholic Parish; Phoenix Rising FC; Scottsdale Training and Rehabilitation Services Inc; Toms Thumb Fresh Market; Fate Brewing Company South LLC; and the Frank Lloyd Wright Foundation.
A total of 869 companies received funds in the final category, $150,000 to $300,000.
Scottsdale officials have closely been watching the city’s economic vitality as the 2020 pandemic stretches on.
The economic development department released a report in the early summer identifying the impacts of the virus.
The report claims that in Arizona, more than 581,000 initial unemployment claims were filed between Mid-March and May.
Of the initial claims, more than 31 percent accounted for accommodations and food service; followed by healthcare workers at 14 percent; and retail trade at 12 percent.
The week of May 16, 32,295 initial unemployment claims were reported for the state of Arizona.
Between March and now, 28 Scottsdale businesses have given WARN notices --- or Worker Adjustment and Retraining Notification --- which gives employees a 60-day written notice to employees in advance of mass layoffs.
These notices are tracked by the Arizona Department of Economic Security.
The WARN notices represent more than 4,700 jobs. They are: