Hartford Business Journal

24 Hartford Business Journal • June 15, 2020 • www.HartfordBusiness.com OPINION & COMMENTARY EDITOR'S TAKE PPP provides boost to CT small businesses D arius Kania had some sleepless nights early this spring. As the coronavirus pandemic was beginning to rapidly spread in Connecti- cut, the company he runs with his father — Lynn Welding Co. in Newington — saw a quick and significant drop in revenues, particularly as the aerospace industry took a nosedive amid grounded flights and fearful passengers. Layoffs were likely for Lynn Welding's staff of about 70 employees who provide high-precision welding services for the defense and aerospace industries. Kania, who is vice president, said he never had to eliminate someone's position because there wasn't enough work for them. "I lost a lot of sleep figuring out who we had to let go," Kania told me recently. "All of our teammates are so important, but we had to come up with a plan." Months later no one at Lynn Welding has lost their job. That's because the company in April got a federal Paycheck Protection Program loan, which allowed Lynn Welding to maintain its entire workforce, de- spite the drop in sales. The funding, Kania said, allowed him to stabilize the company during the worst of the downturn. Now orders are picking back up. He's hopeful no layoffs will be needed once the PPP funding runs out. "For us that PPP funding preserved jobs," Kania said. "I'm grateful because the worst thing you can do as a business owner is let someone go because you can't provide the work that they need to take care of their families." In April, I wrote a column praising the Paycheck Protection Program. Since then, it seems most of the media coverage of the PPP has been negative. There has been a focus on technical glitches with the program's rollout and complaints about the rigid rules to achieve loan forgiveness. There's also been backlash against larger, publicly traded companies that received loans, forcing them to return the money. But after Hartford Business Journal's newsroom talked to more than a half-dozen small employers for this issue's small business focus, I'm con- vinced more than ever that PPP has been a good and effective program, keeping businesses afloat and preserving jobs while states were forced to shutdown major parts of their economies to stop the spread of COVID-19. Whether it's Lynn Welding, Ideal Fish in Waterbury, Hartford-based GO-Agency, Integrity Martial Arts in Enfield or even HBJ, the PPP has given tens of thousands of Connecticut businesses a financial lifeline dur- ing an unprecedented health and economic crisis. Entire industries in this state — ranging from the news media to auto dealers, restaurants and events venues — sought out PPP funds to stay afloat. Yes, the program could have run more smoothly, and it's unfortunate it took an act of Congress to loosen some of the loan forgiveness rules that were scaring off potential borrowers. There are also legitimate concerns about minority-owned businesses' lack of access to the program. But all in all federal policymakers and the U.S. Small Business Admin- istration should be given credit for rolling out the massive $660-billion program in such a short time period. In my view PPP has been so effective that it must be studied, improved and used in future responses to major economic downturns. Maybe it can be combined with a federal business interruption insurance program to protect small employers against future public-health emergencies. Regardless of what happens next, business owners like Kania are grateful PPP was here to provide a helping hand during the coronavirus pandemic. "It's a great program," Kania said. "All of our employees are so thankful no one got laid off." OTHER VOICES When counting on each other counts By David J. Obedzinski W ho are you counting on to help you, your family, work colleagues, and your community make it through this pandemic? The president relies on federal agencies and experts under his direction, and he counts on them to provide informed advice and recommendations from which he may make his decisions. Congress provides funding and oversight, and our state leaders receive guidance from the federal government to help them serve everyone within their borders. During this pandemic our state leaders are counting on that guidance, any resources they can secure, as well as perspectives from other governors. We count on our governor and other state leaders to provide the network of information and resources that allows local government, organizations and communities to do what they do best. Our front-line first responders and healthcare providers count on that guidance and resources so they can safely do their lifesaving work. Our communities respond in amazing ways in times of crisis. Local governments often count on and work hand-in-hand with local agencies, places of worship, busi- nesses, school districts, chambers of commerce, community foundations, nonprofits and others to provide di- rect support to the most vulnerable. Unfortunately, more of our neigh- bors are now among the most vul- nerable, sometimes for the first time in their lives, due to the widespread economic impact of this pandemic. At a local level, we're all counting on each other. We need to recog- nize the value of what we're asking each other to do so we can keep the danger low, reduce the risk, and give science a chance to catch up and contain the virus. Yes, some of the requests seem unnatural in our culture. No hugs or handshakes. Wear a mask in public, and keep a social distance from each other. Work to create a safer work environment for your business, and equip our schools and neighbor- hoods with the technology they may never have envisioned they would need for distance learning. But we're all counting on each other, as a community with a com- mon interest, to preserve life, and our way of life. I'm counting on my foundation and the nonprofits we work with to interact with us differently for the foreseeable future so we can safely support the ongoing, innovative ef- forts helping those in need. My family counts on me to be safe when I interact, on a limited basis, in the community. They do the same, and I'm counting on them to do so — for us, and for you. Our current community needs are great. Health and safety, food and financial security, continuing impor- tant education for our youth, mental health and more. The community foundations in our state are connect- ed to the local needs, and most have a COVID-19 fund to support nonprofits with exceptional ongoing efforts. Your local nonprofits have been hit hard financially, just as other businesses have suffered in this crisis. Their long-standing fundrais- ing events have been cancelled, and business sponsorships for future events and projects are in jeopardy. Can they count on you or your business giving them a gift now or in the near future? Consider the funds you would have sent in for their walk-a-thon, road race, gala, or golf tournament? If you could, it would mean more to them now than you would ever know. You can help them weather the storm so they can help more people who are now counting on them. So once again I ask, "Who are you counting on to help you, your family, work colleagues, and your commu- nity make it through this pandemic?" The answer is that we're all count- ing on each other. David J. Obedzinski is the president and CEO of the Community Foundation of Greater New Britain, which serves the towns of Berlin, New Britain, Plainville and Southington. David J. Obedzinski Greg Bordonaro, Editor

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