Monday, April 6, 2020
As we start our fourth week under the stay at home order (now extended to May 1), here is some information you might find useful:
- Demand is very high for the new SBA Paycheck Protection Program (PPP) loans. Some banks in our region started accepting applications from businesses and forwarding the applications to the SBA on April 3. This program, part of the federal CARES Act, can provide partial loan forgiveness to small businesses for retaining employees. Because of high demand, some banks are only working with existing customers at this time. We encourage you to work with your existing lender first. See PPP details and resources here.
- Appalachian Growth Capital(AGC), Ohio Southeast’s sister organization, offers small businesses loans to fill the gaps in what a commercial lender can provide. Last week, JobsOhio transferred $2 million to AGC to support its efforts. We encourage companies to seek SBA loans first; however, AGC can process loans quickly, help companies wanting to grow in response to COVID contracts, and provide broader eligibility in these challenges times.
- Despite record unemployment filings, some businesses are in critical need of hiring new workers. Lt. Governor Jon Husted announced that the Governor’s Office of Workforce Transformation developed a website specifically geared toward matching essential businesses with Ohioans who are able and willing to work as an essential employee during the COVID-19 crisis. Both essential businesses and current job seekers can visit Ohio.gov/JobSearchto post and search.
- The Ohio Manufacturing Association working with the Ohio Hospital Association and Manufacturing Extension Partnership has taken the lead on coordinating efforts to help Ohio companies produce personal protective equipment (PPE) and needed medical equipment. Click hereto explore how to provide needed materials.
- JobsOhio is doing a variety of things to ease cash crunches with their current clients, including deferring loan repayments, offering job retention loans, expediting disbursements, and extending metric evaluation dates. Additional financial help for non-JobsOhio customers is coming. Learn more
- Not all is doom and gloom. Sources have indicated that food at home now constitutes approximately 80% of consumer spending on food compared to 50% before the pandemic. Food companies, including J.M. Smucker Co., Hormel Foods Corp., Tyson Foods, Inc., and Kraft Heinz Co. have announced an increase in production by as much as 40% in order to keep up with demand, according to Credit Suisse. Cincinnati-based Kroger Co. announced it is giving additional “hero bonuses” for all front-line workers amid the COVID-19 outbreak. The bonus is in addition to previous bonuses and wage increases.
- Governor DeWine announced the creation of his Economic Advisory Board that will help the administration work through economic issues facing Ohio as the state looks toward the future. A list of the advisory board members can be found
As always, please visit our COVID-19 Resource page frequently as it is updated when new programs and information is available, and don’t hesitate to reach out should you have questions.
Mike Jacoby, OhioSE President