COVID-19 Economic Impact on the Printing Industry
Updated April 9, 2020 @ 9:50 AM
Breaking Through the PPP Logjam
Problems rolling out the Paycheck Protection Program (PPP) were inevitable. The program is big and complex. And it was assembled quickly to address what for many small businesses is an existential threat.
Rather than worry about who’s at fault, let’s focus on getting around the problems and accessing the lifeline PPP was created to provide. Here are some ideas:
1. Apply through multiple banks. Some banks still are not processing applications efficiently. And many are giving priority to customers with a loan or credit card in addition to a commercial account. That wasn’t supposed to happen, as Senator Marco Rubio made clear in a recent tweet:
“The requirement that a #SmallBusiness not just have a business account but also a loan or credit card is NOT in the law we wrote & passed or in the regulations. They should drop it. The money is guaranteed by fed.govt.”
But it is happening. Moreover, as Brit Morse warns in “Applying for Covid-Relief Loans? Here Are 4 Ways to Prepare,” inc.com, “just because a lender has accepted your application, that doesn't mean it will authorize your loan. So, go ahead and hedge your bets” by applying through multiple lenders.
2. Apply through the most active SBA 7(a) lenders. These financial institutions specialize in SBA small-business loans and so are well prepared to process PPP applications. The top 100 by loan volume are listed on the SBA website.
3. Explore other SBA loan options. Programs include the Economic Injury Disaster Loan Advance of up to $10,000, Economic Injury Disaster Loans of up to $2 million, and Express Bridge Loans of up to $25,000. See our post, “Accessing CARES Act Loans,” for details.
Even if you don’t plan to apply for a PPP loan, consider preparing an application anyway. With business conditions so erratic, you never know. In “How to Submit Your SBA PPP Loan Application and Calculate the Loan Amount,” in Entrepreneur, Mat Sorenson walks us through the process.
Andrew D. Paparozzi joined PRINTING United Alliance as Chief Economist in 2018. He analyzes and reports on economic, technological, social and demographic trends that will define the printing industry’s future. His most important responsibility, however, is being an observer of the industry by listening to the issues and concerns of company owners, executives and managers.
Previously, he worked 31 years at the National Association for Printing Leadership. He has also taught mathematics, statistics and economics at various colleges.
Andrew holds a Bachelor’s degree in economics f rom Boston College and a Master’s degree in economics — with concentrations in econometrics and public finance — from Columbia University.