PPP: A Lifeline To Workers Nationwide

The Paycheck Protection Program Has Helped The Iconic Louisville Slugger Factory, A Health Clinic For Low-Income Patients In Georgia, A Massachusetts Boys And Girls Club, A Key Community Foundation In North Carolina, A New York Florist, A Manufacturer In Michigan, Local Newspapers In Arkansas, And Small Businesses All Over The Country


SENATE MAJORITY LEADER MITCH McCONNELL (R-KY): “Every single day, the historic CARES Act that we wrote and passed to fight this pandemic continues to come online…. [T]he Paycheck Protection Program has saved tens of millions of jobs for American workers. From big cities to small towns to industrial suburbs to farm country, Senate Republicans’ bold program is turning potential pink-slips into paychecks every single day…. [T]he PPP has pushed $500 billion dollars into the economy across more than four million loans. The average loan size is just $118,000. Paychecks instead of pink slips for tens of millions of Americans…. Four million loans across all 50 states. And new loans are still being issued as we speak. This is what serious legislation looks like. This is what serious solutions can accomplish. Every day, the Senate’s work is paying dividends to working families across the country.” (Sen. McConnell, Remarks, 5/20/2020)

SEN. MARCO RUBIO (R-FL), Senate Small Business & Entrepreneurship Committee Chairman: “The goal of the [PPP] program was pretty straightforward, and that was to protect paychecks. We wanted to provide small businesses who did not have the liquidity to do this, to maintain as many people on payroll as possible in the midst of an economic shutdown, in many of their cases the doors were closed, in others they were only partially open. And the hope was to keep as many off the unemployment line as possible…. [U]ltimately, I take comfort in the fact that our unemployment rate right now would be significantly higher were it not for the PPP being in place. And on that, I would say it’s been very successful and by the far the most successful part of the CARES Act.” (Sen. Rubio, AEI Webinar, 5/19/2020)

SEN. SUSAN COLLINS (R-ME): “During the COVID-19 pandemic, these Paycheck Protection Program forgivable loans are a lifeline for thousands of Maine small businesses and self-employed individuals and are supporting Maine jobs ... supporting some of Maine’s smallest businesses as well as self-employed individuals like carpenters, entertainers, plumbers, and many others — shows why it was so important that Congress approved an additional $320 billion to replenish the PPP. This program is making a real difference by allowing small businesses to stay afloat and continue to provide paychecks to their workers.” (“Thousands Of Maine Businesses Cash In On Payment Protection Program,” WMTW, 5/04/2020)

SEN. SHELLEY MOORE CAPITO (R-WV): “Together, we created the Paycheck Protection Program--PPP, as everybody knows it--to save jobs and to keep our employers and employees connected but also to save jobs at small businesses and help those businesses survive.” (Sen. Capito, Congressional Record, S.2499, 5/19/2020)

SEN. JOHN CORNYN (R-TX): “So far, $670 billion has gone into the Paycheck Protection Program. ... Since our small businesses have gotten these funds, there is no shortage of stories about the positive impact they have had in my state, and I am sure each of us can tell similar stories.” (Sen. Cornyn, Congressional Record, S2361-2362, 5/12/2020)

SEN. JONI ERNST (R-IA): “[A]s a member of the Small Business Committee, the Paycheck Protection Program was very, very important to me. So, [I] worked quite heavily on that program and we’ve seen great success in Iowa…. We are very, very glad to have it in place and I’ve heard from a number of those small businesses that are still out there supporting their employees because of the program.” (Sen. Ernst, Press Conference, 5/05/2020)

SEN. TODD YOUNG (R-IN): “The thing I’ve most consistently heard from people is that the Paycheck Protection Program was the right program at the right time. And I know we’ll have important conversations in coming days and weeks about our next steps here in Washington, but we know, in the state of Indiana, this program has worked…. That … is enormously benefiting rank and file Hoosier workers and their employers. And disproportionately, small employers.” (Sen. Young, Press Conference, 5/05/2020)


‘Ending Furloughs And Putting Everyone Back On Payroll Was Made Possible [With] Received Funds From The PPP Program,’ ‘It Was Such An Amazing Relief To Us,’ ‘Will Enable Us To Not Have To Let People Go Like We Did In 2008,’ ‘It’ll Ensure That Our Employees Get Paid For The Time They Were Off’

KENTUCKY: “The manufacturer of Louisville Slugger bats says it put 171 furloughed employees back on the payroll after receiving a loan from a government program aimed at helping small businesses. Hillerich & Bradsby Co. resumed production at its wood bat factory in Louisville on Monday as parts of Kentucky’s economy reopened after weeks of shutdowns because of the coronavirus outbreak. The bat factory had been idled for nearly two months amid the global pandemic. The company did not disclose the amount of the loan it received under the Paycheck Protection Program. But it said the cash infusion was instrumental in restoring all 171 furloughed employees — or about 90% of its work force — to the payroll last week.” (“Bat Maker Says Loan Resulted In Return Of Furloughed Workers,” The Associated Press, 5/12/2020)

GEORGIA: “For the Family Health Centers of Georgia, serving low income and indigent patients in [Atlanta’s] West End neighborhood, getting an SBA loan was critical to its survival. ‘We would have been struggling to meet payroll, and we would have been struggling with our financial obligations,’ said Dr. Michael Brooks, President and CEO of Family Health Centers. With a staff of 120 employees, Dr. Brooks said the more than $1 million he got after not getting anything in the first round is critical to one of the core missions of the Centers. ‘We are seeing patients who are unemployed and uninsured - we see them all,’ Brooks said. ‘We don’t refuse service to anyone.’ … Another key role of the Family Health Centers is offering free Covid-19 testing, which they’ve been doing for more than a month. They say the loan will now keep that going.” (“Small Business Loan Helped Keep Afloat Critical Health Clinic On Atlanta’s West End,” 11Alive WXIA, 4/30/2020)

MASSACHUSETTS: “The Boys and Girls Club of Greater Lowell was one of the local small businesses and non-profits who got a PPP loan processed by Enterprise [Bank]. ‘When we were notified that we had been approved for an SBA PPP loan, it was such an amazing relief to us. We are incredibly grateful to our banker, who helped us through the whole process. We realized this was a first come, first served loan program and, while a lot of money was allocated, there were also so many applying for it. The extra effort was so critical to ensuring that we got in before the money ran out,’ Club Director Joe Hungler said in a press release. ‘We have been extremely stressed about fundraising during this time and what it would mean for our ability to continue to impact kids and teens by serving meals, providing virtual programming and the connections with supportive adults that matter so much. Because of Enterprise Bank and this loan program, we will not have to lay off key people who work so hard for our community.’” (“Enterprise Bank Helps With Over $500M In Small Business Loans,” The Lowell Sun, 5/16/2020)

WASHINGTON, D.C.: “After being shut out of the initial round of forgivable federal loans, the Ali family -- owners of the iconic Washington, D.C. diner, Ben’s Chili Bowl -- got the news they’d been waiting weeks for, their emergency Paycheck Protection Program assistance had been approved. … They’re waiting to see just how much of the loan is funded, but Sage [Ali] said the family is elated.” (“Ben’s Chili Bowl, Iconic DC Business, Obtains Critical Federal Loan,” ABC News, 4/28/2020)

MICHIGAN: “Hoagie Man Deli in Adrian was a Lenawee County recipient of PPP funding. Jerry Gallatin said they didn’t expect to receive funding but applied anyway in the hopes they could receive some safety netting. And they did. … Hoagie Man Deli stayed open for awhile but closed on April 4…. Hoagie Man Deli reopened at the beginning of the month. Business has remained steady, according to Gallatin…. He said the PPP funding took some pressure off and allowed them to ‘confidently bring people back.’” (“Local Businesses Benefit From Paycheck Protection Program,” The Daily Telegram [Adrian, MI], 5/17/2020)

MICHIGAN: “Rima [Manufacturing Co. in Hudson Michigan], automotive parts supplier, is another local business that was a beneficiary of PPP funding. [Rima President Jed] Engle said the funds allowed him to cover expenses and payroll for about half of the company’s employees. He said the other half opted for unemployment. ‘It gave my workers flexibility for what they wanted to do,’ Engle said. … The company operated for a couple of weeks last month to produce a part for ventilators made by General Motors. Engle said they produced enough in those two weeks to cover supply until November. … ‘Overall the program was extremely helpful,’ [Engle] said.” (“Local Businesses Benefit From Paycheck Protection Program,” The Daily Telegram [Adrian, MI], 5/17/2020)

ARKANSAS: “WEHCO Media Inc. will receive $12.3 million in Paycheck Protection Program loans through the U.S. Small Business Administration, said Walter E. Hussman Jr., the company’s chairman, on Monday. WEHCO Media is the parent company of the Arkansas Democrat-Gazette, Northwest Arkansas Democrat-Gazette, eight other daily newspapers and eight weekly newspapers. The company also has a cable television business. Hussman said WEHCO has about 1,300 employees. About 900 of them work at the company’s newspapers…. Hussman said WEHCO newspaper employees who recently volunteered to take furloughs, salary cuts or a reduction in working hours will no longer be required to do so…. Hussman said each of WEHCO’s 21 separate companies is receiving a loan through the program, and the total amount is $12.3 million.” (“WEHCO To Get $12.3 Million In Small Business Loans,” Arkansas Democrat-Gazette, 5/04/2020)

CALIFORNIA: “When Eater SF last heard from Zazie co-owner Jennifer Bennett, things felt pretty grim: the 28-year-old restaurant closed in April, after Bennett said that she’d ‘sold my life insurance policy, maxed out my home equity loan, and gutted my 401k’ to keep the Cole Valley restaurant’s doors open. But now things are looking up for Zazie, as Bennett tells Eater SF that they’re going to reopen for takeout on Tuesday, May 5, after their paycheck protection program (PPP) funding came through.” (“Stimulus Loan Allows Cole Valley Brunch Destination Zazie To Reopen,” Eater SF, 5/04/2020)

  • “When the Paycheck Protection Program (PPP) launched in April 3, Zazie had applied for the small business loan and was approved. Despite its approval, the restaurant didn’t receive funds as the $350 billion the government had put aside ran out on April 16. [Co-owner Jennifer] Piallat told Eater that if ‘more funds are allotted, we should be first in line.’ A second $310 billion PPP was passed later in the month.” (“Zazie Secures Small Business Loan And Reopens After Brief Closure,” Sfgate, 5/04/2020)

CALIFORNIA: “Like many others in San Francisco, Monk’s Kettle owners Nat Cutler and Christian Albertson applied for the PPP loan along with the Economic Injury Disaster Loan (EIDL) as they tried all avenues to keep their business afloat. Forced to trim its staff into a skeleton crew of Cutler, Albertson and chef Rachael Zavala, the group was cutting all non-essential costs. They leaned fully into a delivery model they had begun a few years earlier and cleared out the cellar of its rarer inventory for a fire sale of sorts — it was everything they could do to survive…. ‘We worked out a model that could get us kind of into May, before it was like, “If we don’t get some assistance, then it’s going to change things drastically,”‘ Cutler said…. Cutler, with guidance from their banker at the Bank of San Francisco, put together the paperwork for both loans. Just two hours after the PPP loan application was submitted by their bank, Cutler said, they were approved — one day before it was announced that funds had run out.” (“How SF Beer Bar Monk’s Kettle Avoided Bankruptcy Just In Time With A PPP Loan,” SFGate, 5/04/2020)

  • “‘I cried,’ Cutler said of receiving the news. ‘I was just like, “I can’t believe this.” PPP doesn’t get you out of the woods, knowing how long this might all go on, but it certainly gives you a way better chance of getting through it, especially because we are open and generating revenue.’ The San Francisco bar had managed to score the PPP loan in the first round, submitting their paperwork a week after initial filing opened. Once Cutler and Albertson e-signed the loan documents, the money was in the bank in less than 48 hours. ‘It felt like we were under, I don’t know, a special moon or something,’ Cutler said. ‘It felt like some other forces were at work that had nothing to do with us or with them or with anything. It was just like, the gods are shining on us today and I don’t know why, but I will take it.’ … Cutler credited the Bank of San Francisco for working to gather information for the loan application quickly, and to get it in the right format to submit to the Small Business Association.” (“How SF Beer Bar Monk’s Kettle Avoided Bankruptcy Just In Time With A PPP Loan,” SFGate, 5/04/2020)
  • “Although they had already rehired two front-of-house employees and four back-of-house employees since the shutdown, with the PPP loan they were able to hire back 15 full-time employees through the middle of June. Monk’s Kettle is in a much better position now thanks to the loan; if they hadn’t received it, they would most likely have had to close by June. ‘Honestly, if no assistance ever came through,’ Cutler said, ‘I don’t see how bankruptcy wouldn’t be the inevitable, I just don’t.’” (“How SF Beer Bar Monk’s Kettle Avoided Bankruptcy Just In Time With A PPP Loan,” SFGate, 5/04/2020)

ARIZONA: “Brenda Laskoskie can’t wait to get her employees back to work at her silk and fresh flower shop, Dei-Zinz. ‘Our business depends on those people. They’re like family to us,’ she said. When the federal government first announced the Paycheck Protection Program, Laskoskie tried to get a loan…. Enterprise Bank and Trust was accepting PPP applications from people who had never done business with them, and when the second round of funding opened up, they helped Laskoskie get her loan…. [S]he believes the PPP loan is a lifeline that will help.” (“Scottsdale Flower Shop Finally Receives Small Business Loan,” KPHO-TV, 5/04/2020)

CALIFORNIA: “Danny Justman, manager of the Pawnmart pawnshop in Norwalk, was thrilled to see ‘$99,000 and change’ show up in the company bank account Tuesday morning. That was his long-awaited slice of the federally sponsored Paycheck Protection Program intended to backstop small businesses amid the COVID-19 pandemic. ‘It’ll ensure that our employees get paid for the time they were off without any penalty to sick days or vacation time,’ Justman said. Pawnmart, which is open for pawns and redemptions but not yet for retail sales, has 13 employees.” (“Overlooked Small Businesses Are Finally Getting Federal Loans. Challenges Remain,” Los Angeles Times, 5/06/2020)

NORTH CAROLINA: “Rustic Burger, a Hope Mills burger shop, is seeing some much needed financial relief with the Paycheck Protection Program. … [Owner] Jonathan [Schmier] and his wife, Trista, had to furlough three staff members; however, at the end of April, Congress approved $310 billion with revisions to ensure places like Rustic Burger weren’t forgotten. ‘The second time it opened back up, it went through pretty smoothly,’ Schmier said. … [I]n a matter of four days, the Schmiers received the money necessary to rehire their staff and pay bills and utilities. They believe it will last them at least two months.” (“Hope Mills Burger Shop Rehires Entire Staff After Second Try Success At Paycheck Protection Program Loan,” ABC11News, 5/18/2020)

NORTH CAROLINA: “The Foundation for the Carolinas, one of the largest community foundations in the country by assets, received a $2.3 million federal Paycheck Protection Program loan, which its leader says will help avoid layoffs at the nonprofit. … Non-profits are often small businesses, too. The Foundation for the Carolinas, despite its huge asset figure, has only 135 employees. … PPP financing ‘will enable us to not have to let people go like we did in 2008, at a time when everyone is asking us for a huge amount of work,’ Marsicano said in an interview Monday. In the 2008 financial crisis, the foundation cut 10% of its staff.” (“Foundation For The Carolinas Gets $2.3 Million PPP Loan To Avoid Coronavirus Layoffs,” The Charlotte Observer, 5/5/2020)

NEW YORK: “Julia Testa, owner of Julia Testa Flowers, finally got her loan.… ‘The Mother’s Day orders are starting to roll in. We’re really excited about it because we really need the business,’ Testa said. Testa is gearing up for one of her busiest weeks as a florist. Thankfully, she has employee Christine Wilkinson back at the SoHo shop to help. ‘When we were able to come back to work, of course I wanted to come back,’ Wilkinson said. Wilkinson, the company’s wedding director, was furloughed in March…. And now that Testa got her SBA Paycheck Protection Program loan, she can bring back more employees as the program was designed to do.” (“CBS2 Gets Clarification From SBA On What Lies Ahead For Local Businesses And Paycheck Protection Program,” CBS New York, 5/4/2020)

ARKANSAS: “An Arkadelphia nonprofit group that provides care and employment for people with developmental disabilities is being touted as a Paycheck Protection Program success story. … Yukiko Taylor, the group’s executive director, says the covid-19 crisis wreaked havoc on the 47-year-old nonprofit, and the Paycheck Protection Program provided much-needed relief. ‘We lost revenue, but our expenses are increasing,’ she said. ‘We didn’t know how long we could do this.’ The federal aid program, part of the Coronavirus Aid, Relief, and Economic Security Act, ‘extended our life,’ she said. Group Living provides services to about 60 clients with varying special needs. Some hold jobs and are high-functioning. Others can’t work and require round-the-clock care.” (“Group Serving Disabled Survives; Paycheck Program’s Aid Keeps Arkadelphia Nonprofit Going,” Arkansas Democrat Gazette, 5/11/2020)


Community Banks Continue To Play A Crucial Role In Getting Funds To Small Businesses: ‘Small Businesses Are The Engines Of Our Economy And We Just Needed To Make Sure We Did Our Part’

GEORGIA: “The president of African-American owned Unity National Bank, George Andrews, is helping make sure Family Health Centers and other small business owners are properly submitting SBA loan applications to ensure they’re getting the money they need. ‘We have submitted over one hundred applications and twenty-five have been approved, representing in the neighborhood of five to seven million dollars,’ he said. All that money, said Andrews, is what will keep small businesses alive on Atlanta’s West End. Without it, he said many ‘mom-and-pop’ stores and restaurants will be forced to close down permanently.” (“Small Business Loan Helped Keep Afloat Critical Health Clinic On Atlanta’s West End,” 11Alive WXIA, 4/30/2020)

MICHIGAN: “County National Bank has helped over 900 small businesses get approved for funding across Hillsdale, Jackson and Lenawee counties, more than $131 million in assistance in total. ‘It’s been a monumental effort,’ said Chris Clarke, senior loan officer. County National Bank has branches in Adrian and Hudson. Rima and the Croswell Opera House were assisted by the bank. Clarke said there’s usually just one person at the bank who handles those sorts of loans. Seven others were trained to process them, working around the clock to meet demand. In the first round of PPP funding, County National Bank assisted 502 small businesses. The average loan size was $200,000.” (“Local Businesses Benefit From Paycheck Protection Program,” The Daily Telegram [Adrian, MI], 5/17/2020)

MASSACHUSETTS: “In just four weeks, Enterprise Bank surpassed the number of commercial loans it typically helps process in an 18-month period as it worked to help local businesses get over $500 million in loans as an authorized lender for the Small Business Administration Paycheck Protection Program, according to a press release. ‘The government and the SBA designed the PPP to deliver financial support to eligible businesses and non-profit organizations through the conduit of our country’s banking system, and we are honored to partner with our government in this critical action,’ said Enterprise Bank CEO Jack Clancy. ‘A complicated program that would have likely been rolled out over the course of many months or even years in normal times, was rolled out in a matter of days.’ The Lowell-based bank helped get about 2,400 PPP loans approved through the CARES Act Stimulus Program, with the median amount of those loans being $74,000 according to a press release.” (“Enterprise Bank Helps With Over $500M In Small Business Loans,” The Lowell Sun, 5/16/2020)

ARIZONA: “‘Small businesses are the engines of our economy and we just needed to make sure we did our part and we weren’t going to say only clients,’ said Jeff Friesen, the president of the bank’s Arizona region. According to Friesen, Enterprise shifted 100 workers and started processing loans 24/7. ‘We put a department together in five days and funded over three years’ worth of loans inside of a couple of weeks,’ he told 3 On Your Side.” (“Scottsdale Flower Shop Finally Receives Small Business Loan,” KPHO-TV, 5/04/2020)



Related Issues: Small Business, COVID-19, Jobs