Waste industry raised nearly $ 812 million in first batch of PPP loans, as stimulus bill sets up second round

The coronavirus relief package passed by Congress and presented to President Donald Trump this week, partially reinvigorates the Federal Paycheque Protection Program (P3P) with a new fund of 284 billion dollars.

If the bill is signed by Trump, this development could match a new inflow of capital for the waste and recycling industry, which received nearly $ 812 million in loans from the first round of the program that ended. in August, according to more detailed data published by the US Small Business Administration at the end of November.

These funds would have helped to retain some 66,542 jobs in all categories, including solid waste collection and disposal companies, as well as FRM operators. They were particularly critical in the second quarter, when a significant portion of the business customers of collection companies closed and major sources of revenue were cut off.

The main allocations among more than 4,000 industry beneficiaries
Society State Amount of the loan Jobs retained
Rubicon Georgia $ 9,779,000 290
Patriot Environmental Services California $ 7,055,900 367
Waste Solutions in California California $6,808,100 295
Homewood Disposal Service HE $ 5,786,140 276
Meridian waste acquisitions NC $5 646 400 384
JRM Transportation and Recycling Services MY $ 5,344,555 250
Royal waste services new York $5 228 475 401
Garaventa companies California $5,103,023 417
Trolley in full ownership New Jersey $4 743 087 280
Community waste disposal Emission $4,466,455 N / A

Three quarters of these jobs were covered by the sub-category of loans over $ 150,000. Waste and recycling service provider Rubicon appears to have received the largest loan in the industry, with nearly $ 9.78 million. The company over the summer said the funds were important to retain employees and “ensuring that our network of more than 7,000 small transportation partner companies can continue to receive payment for their waste and recycling services. “

In other categories, Community Waste Disposal in Dallas received the largest allocation among solid waste landfill companies with a loan of nearly $ 4.47 million, Electronic Recyclers International in Fresno, Calif., Led MRF with a loan of nearly $ 4.44 million, and Ross Service Corporations in Wilmington, Delaware, finished first in the “solid waste combustors and incinerators” category with a loan of approximately $ 4.17 million.

Applicant’s NAICS code Total funds allocated Percentage of overall waste industry allocations
Solid waste collection (562111) $ 523,743,011 64.53%
Material recovery facilities (562920) $ 194,321,557 23.94%
Landfill of solid waste (562212) $ 83,285,877 10.26%
Solid waste combustors and incinerators (562213) $ 10,264,851 1.26%

Waste Dive has put together a revised list of all industry loan recipients less than $ 150,000 and over $ 150,000 for public access.

Despite these millions of funds, waste and recycling operations across the country continue to be strained by the effects of the pandemic on the economy and consumer habits, in some cases. in the face of declining income and changing volumes. Many local communities expanding funds to a range of public services in need also find it difficult to adequately support the sector, although this package does not include specific funding for them.

Waste and recycling companies could once again have the ability to apply for PPP loans from the federal government thanks to a notable part of the $ 900 billion deal approved by Congress – pending the threat of a veto from Trump. The $ 284 billion in available funds is just over half of what was distributed from the program’s previous allocation.

The National Association for Waste and Recycling (NWRA), in collaboration with dozens of trade groups from other industries have publicly pushed for a second round of the program with some amendments, including making P3 funds tax-deductible. As part of the latest iteration of the program, companies are able to claim expense deductions covered by the proceeds of the PPP loan.

As for who can apply, companies that did not borrow money in the first round can follow original eligibility criteria. Businesses that have previously received a loan under the program can re-apply for an amount equal to 2.5 times the average monthly payroll, with a cap of $ 2 million from the previous cap of $ 10 million.

Larger companies in the waste industry will not be eligible for PPP funding again, but smaller service providers could potentially still see an advantage. In its previous support for the program, the NWRA also recognized that the loans could, in some cases, help clients in various sectors.

According to a recent Stifel report, the volumes of commercial and industrial waste remain down by 5% on average (even up to 10% in certain regions). Managing Director Michael E. Hoffman said P3 financing was most useful in the second quarter when many customers were shut down, but it is no longer the case. As a result, it expects qualifying industrial service providers to no longer request large-scale PPP funding.

“Small businesses (…) have adapted to the reduced level of business activity. What is back is not open or at a severely reduced level of service,” Hoffman said via email. “I suspect most won’t and may not want to jump [through] the hoops needed to get it. “

Cole Rosengren and Matt Leonard contributed to this story.

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