Worcester Business Journal

wbjournal.com | April 13, 2020 | Worcester Business Journal 23 Congress needs to expand $349B small business bailout program V I E W P O I N T E D I T O R I A L L et's face it: Some of the small businesses that have been forced to close are not going to recover from the shock of Gov. Charlie Baker's order to close all non- essential businesses, as part of the global effort to stem the spread of the coronavirus. But others, given a lifeline, can have a fighting chance to make it through to the other side. at lifeline remains the U.S. Small Business Administration's $349-billion Payroll Protection Plan, which offers loans to pay the bulk of a company's payroll for eight weeks. Yes, there are some details you have to sort through as to what qualifies, but the loans are largely forgivable, and no business owner must offer a personal guarantee or put up any collateral to qualify. With employees on the payroll, it's a no-brainer for a business owner or nonprofit running short on cash. Congress passed this program into law less than two weeks ago as part of the $2-trillion coronavirus economic stimulus package. Aer a very rough start to its implementation, the program saw the approval of $190 billion in loans in the first four days. While another $160 billion is still in the tank, the backlog banks and credit unions are processing will likely run out soon. If you're a small business owner who has not done your homework yet on this funding, get on your horse today. Call the bank you do business with and ask them how to apply, visit the SBA website or click on the WBJ events page on our website where you can watch two different webcasts explaining how the program works. But most of all, act now. As businesses desperately need this funding to stay afloat in the coronavirus crisis, Congress must work together to bolster the program, as $349 billion clearly will not be enough. e Senate considered legislation on April 9 to add $250 billion to this pot, but the measure wasn't immediately approved as Congress technically wasn't in session and the usual partisan bickering got in the way. As Congress works on the details of another stimulus package, we urge this money be included. In fact, it is appearing increasingly likely eight weeks of payroll loan forgiveness won't be enough for small businesses to stay afloat, since the efforts to stop the spread of coronavirus are already extending into summer. Keeping workers employed is a much better alternative than an increase to the already massive jump in employment: about 17 million nationwide in the last three weeks, including 470,000 in Massachusetts. By keeping their existing workforces, companies are better positioned to recover from this economic crisis, and those workers maintain their salaries and benefits in contributing to the economy. As much as this is a no-brainer for businesses to apply for the program, it should be a no-brainer for Congress to continue the program for as long as social distancing is a necessary evil to stop the coronavirus. But businesses in need shouldn't wait on Congress to do the right thing, especially as each passing bill increases the likelihood these stimulus efforts will fall back to the partisan quagmire Washington, D.C., has become. ere is still money le. Local bankers who have been administering the applications through the overtaxed SBA system have been working 15-hour-plus days, as the pressure to help clients access this funding has been immense. e window is still open to receive this very favorable funding. If you have not yet applied, don't delay any longer. W Why we decided to stay open during a pandemic A couple of weeks ago, the Boys & Girls Club of Worcester, as well as other licensed child care cen- ters, had to make perhaps one of the biggest-ever decisions affecting our industry: Do we close our doors due to Gov. Charlie Baker's order or apply through the state to become an emergency childcare site? ere would be ramifications either way. To close our doors would impact our mission, financial well-being, and cause folks to work at home (with most of our staff working directly with children, how could we implement that?). It would have distanced us from the community on the front lines of addressing a coronavirus pandemic never experienced in our lifetime. In closing for business, we would lose our chance to contribute to the war effort. On the other hand, to open could put my team and others' health at risk, even following the safety and sanitation protocols provided by the city and local hospitals. And yes, it would impact us financially due to increased costs with the expanded hours of operation and additional staffing. As a mission-driven organization, opening would help ensure our regular members and their families would have a place to go. We'd be part of the solution. I thought about our first responders, grocery store work- ers, delivery drivers, and hospital workers. We are asking them to take a risk and provide for us to have food, safety, and health care. I thought about my dad, who is 86 years old. Would he get the care he needs if hospital workers are unable to go to work because they lack access to childcare? Aer talking with my staff and board, we decided to apply to be an emergency childcare site. We teamed up with the YWCA Central Massachusetts, Guild of St. Agnes, and Pakachoag Acres Day Care Center. Together, we have the capacity to serve 610+ children from infancy to 14 years old. We are sharing resources and best practices, as well as staff. We can combine efforts in leveraging contacts for supplies and in applying (jointly) for financing and grants. We are there for each other: venting, laughing, collaborating. So, we are open. us far, the decision we made has been positively affirmed every day. Daily, we see: • Parents thanking my team for providing care to their children so they can work as our first line of defense; • Kids talking about how they love strawberry milk during lunchtime, having fun playing social-distancing games in our gymnasium, and making new friends; • Donors offering support, and dropping off supplies. To be clear, each organization needs to do what is best for them. So many things to consider: capacity, finances, mis- sion, staffing. Let's refrain from judging and shaming others, whether a business is open or not. I received a message on Facebook, telling me to shut down and that I was a horrible person. It was followed by a note from a supporter telling me to hang in there. We are navigating a new world, and it almost feels like we are learning how to walk. We will all make mistakes, and there will be more dark days before this pandemic is over. I feel confident we will learn from this and as a community we have each other's back. We will be okay. Liz Hamilton is the executive director of the Boys & Girls Club of Worcester. BY LIZ HAMILTON Special to the Worcester Business Journal Liz Hamilton W WO R D F R O M T H E W E B Facebook feedback "ank you Eric Dickson for your forward thinking and action. e right guy in the right place at this critical time." – Sheila Daly, April 2, on a WBJ story where Dr. Eric Dickson, CEO of UMass Memorial Health Care, said the hospital system is preparing for a surge of corona- virus patients "at's amazing." – Melissa Cote, April 8, on the Worcester Together fund for coronavirus relief granting about $400,000 to Central Mass. nonprofits Tweets of the Week "Our CEO, Ed Manzi, discusses the early demand for the $349-billion Paycheck Protection Program from the federal stimulus law." – Fidelity Bank (@FidelityBankMA), April 7, on its CEO appearing on the WBJ Podcast to discuss high demand for the federal small business bailout program "Worcester Fund >>>CLOSING IN ON FOUR MILLION DOLLARS!!" – Worcester Fitness (@worc_fitness), April 7, on the Worcester Together fund raising about $4 million in two weeks for coronavirus relief

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