From the auto dealership co-owned by the state's most prominent sports figure to some of Alabama's most iconic restaurants and critical employers, the Paycheck Protection Program loans sent billions of dollars in emergency loans to thousands of Alabama businesses.
But new data from the Treasury Department provides a look at which Alabama industries saw the greatest injections of forgivable emergency loans during the Covid-19 crisis – as well as some of the notable borrowers that were approved for funding from the $659 billion relief program designed to keep workers employed during the pandemic.
The data below is specifically looking at loans greater than $150,000. At the bottom of the story, you can also find a database featuring the entire PPP database from the Treasury Department.
Medical providers get millions
As we've noted, there were two very different sides to the health care industry during Covid-19.
While hospitals spent a considerable amount of time treating Covid-19 patients and working to limit the crisis, medical providers' bottom lines took a substantial hit from restrictions on elective procedures and declining patient volumes as many avoided going to the doctor or delayed routine check-ups or exams.
Those challenges were reflected in the PPP program. Physician offices in Alabama secured nearly 500 PPP loans of $150,000 or more. Those totals include small doctor's offices and major urgent care chains, such as American Family Care – a growing company that previously noted the challenges it was facing due to the effects of Covid-19.
Dentist offices – with 108 loans – were also among the top sectors for PPP loans in the state. Like hospitals and health providers, dental offices also struggled due to public health orders that limited their operation during the early parts of the pandemic.
According to the data, two health care providers – American Family Care and Anesthesiologists Associates PC – were among the PPP recipients with loans totaling more than $5 million.
Southview Medical Group, Birmingham Hematology and Oncology Associates and Cahaba Medical Care Foundation each received between $2 million and $5 million.
Alabama restaurants got PPP, but also obstacles
The culinary scene has been one of the most affected by the Covid-19 crisis, and it was also one of the largest recipients of PPP in Alabama.
Full-service restaurants secured at least 354 loans totaling more than $150,000, while limited-service restaurants secured another 110. Food distributors that are among the largest vendors for the industry were well represented among the list of largest recipients.
The list of restaurants that were approved for PPP loans is a veritable who's who of Alabama's culinary world. Prominent chefs like Frank Stitt and Chris Hastings were among the recipients, as were Southern staples like Niki's West and Dreamland Bar-B-Que. Growing chains like Taco Mama, Taziki's and others were on the list.
But, as Stitt and others have noted, PPP loans created a number of obstacles for restaurants due to a number of factors, including continuing limitations on operations that have prevented many restaurants from bring back their full staffs or even reopening in some cases.
As we noted in last week's Cover Story, plenty of challenges remain for the industry – and many are hoping for additional federal relief.
Auto industry impact
Behind restaurants and health providers, car dealerships were the next most common recipients of PPP loans in the state.
As Forbes first noted, the Mercedes-Benz of Birmingham dealership co-owned by Nick Saban was among the recipients. Joe Agresti, who co-owns a chain of dealerships with Saban and multiple other partners, told Forbes the loans were used for payroll purposes and helped keep the overall company's 480 workers employed.
The Irondale dealership, through its BIJ Motors AL LLC entity, secured a loan between $2 million and $5 million. But Mercedes-Benz of Birmingham was far from alone in the dealership world.
All told, more than 200 Alabama car dealerships were approved for PPP loans – including more than 40 in metro Birmingham.
The dealership industry is an important one to watch in the wake of the crisis due to the importance of the auto manufacturing industry to the state's economy. Over the past decade, the industry has fueled considerable job growth in central Alabama – so a prolonged slump in auto sales could have a detrimental effect on numerous facets of the local economy.
In addition to BIJ Motors AL LLC, Jim Burke Automotive Inc. was the other top dealership recipient in metro Birmingham, with a loan between $2 million and $5 million.
Churches pursue loans
Nonprofit organizations were also eligible for PPP loans, and churches were among the beneficiaries of that provision.
A total of 209 Alabama churches or religious institutions secured loans totaling more than $150,000, according to the Treasury Department's data release.
That includes a host of churches in metro Birmingham across a range of denominations and geographies – from Over the Mountain churches in Mountain Brook and Vestavia Hills to outlying suburbs and the city of Birmingham.
Religious affiliated organizations with the largest loans were Episcopal Foundation of Jefferson County, Diocese of Birmingham, Oak Mountain Presbyterian Church and Alabama Baptist Children's Homes & Family Ministries, which each received loans between $2 million and $5 million, according to the database.