The aim of the Paycheck Protection Program (PPP) was to save jobs and give small businesses a boost during an unprecedented time that saw demand for many products — including tires — drop with a thud.
The Small Business Administration (SBA) provided businesses with up to 500 employees PPP loans that were fully forgiven if used for payroll, interest on mortgages, rent and utilities.
In total, $521 billion in PPP loans were given out to businesses as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act. Included in that total was at least $1 billion in emergency small-business loans to more than 21,000 tire- and auto-service-related companies in response to the economic hardships of the COVID-19 pandemic.
Tire Business' analysis of data in six industry segments — tire manufacturers, retreaders, dealers, wholesalers, automotive repair and oil/lube shops — showed 21,217 companies received loans totaling between $1 billion and $2.2 billion. The federal information shows only a range, not a specific loan amount, for each company.
Tire dealers received the most funds among the categories tracked, with 5,765 companies classified as tire dealers receiving between $599 million and slightly more than $1 billion. The average for each business was between $103,850 and $186,643.
In this category, seven companies were shown in the maximum loan range of $5 million to $10 million: ATV Inc. (d.b.a. American Tire Depot) of Vernon, Calif.; Earl W. Colvard Inc. of Deland, Fla.; Commercial Tire Inc. of Meridian, Idaho; S&S Firestone Inc. of Lexington, Ky.; VIP Inc. of Auburn, Maine; Plaza Tire Service Inc. of Cape Girardeau, Mo.; and T&W Tire L.L.C. of Oklahoma City.
McCarthy Tire Service Inc. of Wilkes-Barre, Pa., is shown as having received five separate loans totaling at least $8 million and as much as $19 million.
Thirty-four companies received loans of between $2 million and $5 million, and 48 got $1 million to $2 million.
A second round of PPP loan funding, $285 million, was made available in late December 2020 to be doled out through March 31.