As the Covid-19 mandatory lockdown for non-essential businesses continues, our local Bedford businesses are making do the best they can, but it is not easy.
There are several programs to help, both from the State and the Federal Government The recent $2 trillion stimulus package had many components to help individuals as well as businesses. A massive program like this always comes with hurdles. I reached out to various groups around town to hear how things are going for the local businesses.
Economic Development Director Alyssa Sandoval
Sandoval shared the following information in an email:
The federal CARES Act that was recently passed has a lot to offer small businesses in Bedford, and I have been busy reaching out to businesses whether by email, newsletter, or by phone to let them know about the recent provisions that could allow them to receive financial assistance.
From my discussions with them, many have applied or are in the process of applying to the Economic Injury Disaster Loan, which can provide a one-time grant of up to $10K that can help some businesses weather the current situation for a month or two, especially if they have had to close. The other loan program that many have applied to or are in the process of applying to is the Paycheck Protection Program.
This can be quite a good benefit for businesses since it provides a financial incentive for businesses to keep or rehire employees by June 30, and the initial loan can be forgiven under certain provisions for employment. The one issue that does come up is that the process for receiving both of these loans is longer than initially thought. For example, initially the SBA said it would take up to three days to receive the cash advance from the Economic Injury Disaster Loan program and that has not been the case. We have heard that it takes two weeks or more in some cases. The SBA has been overwhelmed by the number of applications but is making steady progress.
Some of the sole proprietor businesses have been concerned that the Paycheck Protection Program does not apply to them since they are self-employed. I recently learned from the SBA that if you are paying yourself, that can be eligible for the Paycheck Protection Program.
For all of these programs, I am strongly advising businesses to apply at their earliest convenience, since federal funding is capped and it is better to get your application in earlier than later. I am updating the website with details on how to apply for both programs as well as tips to keep in mind at this website: https://www.bedfordma.gov/economic-development/pages/covid-19-resources-for-business
Alyssa also sent this page with some updates Business Update from the Town of Bedford – April 15, 2020
Bedford Chamber of Commerce Executive Director Peter Bagley
Peter Bagley from the Bedford Chamber of Commerce says the Chamber has been very busy helping businesses apply for the help available. Peter wanted to assure businesses that the Bedford Chamber is available to help all 525 registered businesses in Bedford, not just Chamber members.
Peter says they have helped businesses with the paperwork and the Chamber is working on various information sessions via email on the SBA loan process, the PPP (Paycheck Protection Program,) and other available aid.
The Chamber has some other initiatives it is working on to help Bedford Businesses. One of the new initiatives is to help some of the local restaurants with the “Take-Out-Tuesday” promotion. The BCOC hopes to be listing the Tuesday promotions by next week on the BedfordChamber.org website.
Another thing the Chamber is working on is a new program, “We Care,” in coordination with the Council on Aging and Bedford High School. The idea behind the “We Care” program is to help isolated seniors by connecting them with high school students. The students write letters and deliver goodie bags to senior citizens in town as a way to help, and to make seniors feel connected. To date, the Chamber has delivered 20 goodie bags and will continue the program.
Looking beyond the initial lockdown, the Chamber is planning ways to help businesses get back on their feet when it comes time to reopen–hopefully sooner rather than later. The Chamber has business hours, via phone or zoom, on Mondays from 4 to 6 pm. Check out the web site for more details.
Applying for Government Loans
Some of the businesses that have been applying for some of the government help are having various degrees of frustration. One issue that seems to be coming up is some of the loans are being managed through the banks, but the banks are swamped and often are reducing hours and staff.
Middlesex Savings Bank alone has had over 3,000 applications. Others voiced concern over how much information each application requires. Once you get through on the website, you need to have a lot of data ready to go. Pete Bagley at the Chamber said that he has lists of the kind of information you need before you go online.
At the time of this writing, news alerts have begun to emerge that the loan program is out of money. White House says new small business loan program is out of money, leaving many firms grasping for lifelines Washington Post – Apr 16, 2020
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