US Treasury data on Paycheck Protection Program (PPP) Shows Loans to the US dredging industry—close to $100mm

DredgeWire exclusive

July 9, 2020 – The US Treasury has released data on loans to small companies, including to the US dredging industry as part of its PPP program, a stimulus program to counter the economic impact of Covid-19. The companies included both dredging contractors and dredging equipment suppliers as well as service firms and shipyards.

To qualify the borrowers needed to have fewer than 500 employees.

DredgeWire has compiled an exclusive list of 40 companies involved in the dredging industry. They are from 20 separate states, from the West Coast to the East, and from every region of the country.

These companies are among the literally 4.9 million American companies which received such loans with a national overall average of about $100,000 each. These so-called “PPP” loans, that is, Paycheck Protection Program loans, reached a total value of over $600 billion nationwide, and reportedly helped support over 51,000 jobs.

According to the Wall St. Journal, “More than 90 industry sectors each had more than 10,000 firms approved for PPP loans during the coronavirus pandemic.”

Companies which retain their employee base over the life of the loan in 2020 will be eligible for forgiveness of the majority of these loans; that surely is the objective of the recipients listed below. The dredging companies on our list report over 3600 jobs supported by the PPP loans, with Anchor QEA and Conrad the largest two at 400 and 473, respectively.

Many well-known names in the industry, such as Great Lakes Dredge and Dock, Weeks Marine, and Manson on the contracting side, and Ellicott Dredges, Hypack, and GIW on the supplier side, are not represented presumably because either they have more than 500 employees, or are part of a group which does, making them ineligible.

The cumulative borrowings, based on the min/max ranges provided by the Treasury, are between $42mm and over $95mm. The largest three loans were to Anchor QEA, Conrad, and the Dutra Group, each in the $5mm to $10mm category.

Laura Memhard Fleming, the principal of SRS Crisafulli, a builder of small dredges in Glendive MT, noted:

“Our bankers (Stockman Bank of Montana) were proactive in advocating for their customers. Our workforce has been able to remain at full strength with the benefit of the federal program. “

Link to US Treasury release: https://home.treasury.gov/news/press-releases/sm1052

List of Dredging Companies receiving loans (with loan values listed in ranges):

In an interesting contrast, according to Dutch news sources in April, Royal IHC received government support as part of its restructuring worth over €400mm. Royal IHC itself has over 3000 employees.

Secretary of the Treasury Steven Mnuchin made these comments:

“The PPP is providing much-needed relief to millions of American small businesses. We are particularly pleased that 27% of the program’s reach is in low and moderate income communities which is in proportion to percentage of population in these areas. Today’s release of loan data strikes the appropriate balance of providing the American people with transparency, while protecting sensitive payroll and personal information.”

DredgeWire will report more details if and when they become available.