CLEARFIELD – As the COVID-19 crisis continues, businesses are scrambling to apply for funds and comply with the ever-changing rules issued by both the federal and state governments.
Rob Swales, chief executive officer of Clearly Ahead Development, has been busy trying to help local businesses navigate these strange waters.
Swales has spoken with over 100 businesses since the beginning of this crisis in mid-March. “Each of them is in a unique situation and is trying to manage their working capital.”
These are mostly smaller business with 100 or less employees. “It is a tough time for these folks.”
Swales stated he has had conversations with companies that he had never heard of before the crisis.
“There are 2,000 businesses in Clearfield County and our focus is more on the industrial companies,” he explained.
Regardless of the type of business, “everybody is in the same boat, feeling the same pinch.”
The very first program offered was from the state, the COVID-19 Working Capital Access (CWCA) program, which was 0 percent interest loans that anyone could apply for, he said.
“I was watching the governor’s live conference where he mentioned the program. Within 30 seconds, the phone started ringing and I started getting e-mails about it.”
The program only had $61 million to give out and it “disappeared in 3 ½ business days.”
Overall, there were 790 applications asking for $75.6 million, he said.
In the end, only one business in Clearfield County received funds from CWCA.
Some of the interested businesses had 90 percent of their paperwork done in this “elaborate process” that included 10 different attachments, before the money ran out.
Swales is keeping their information on file in case the program receives more funds.
The other option for businesses in trouble is the Paycheck Protection Program through the Small Business Administration. For this, applicants applied directly to a bank for a low-interest loan that could be forgiven if certain conditions are met.
“The banks’ phones were ringing off the hook” about this loan program, Swales said.
Clearly Ahead was able to help a few groups by providing them with standardized documents to apply.
Although it was announced the PPP is now out of money, it is possible that another stimulus package could provide additional funds, he said.
Overall, Swales said the impact of the shutdown may be felt for years and some of the jobs will not come back.
One local manufacturer has had to lay off 75 percent of their work force, and are now struggling to meet the demands of their customers, he said.
Swales explained that because Pennsylvania does not consider all manufacturing as essential, local companies are losing contracts to factories in Ohio where they are still able to work.
These businesses will have to “battle to get their contracts back” and try to save their workers’ jobs. “Pennsylvania is losing its competitiveness every day,” he commented.
The Clearly Ahead office is closed to the public but the staff is working remotely and is willing to advice any business with their concerns.
If you have questions on any business program, the best way to contact Swales is via e-mail at rswales@clearlyahead.com, or Paul McCloskey, vice president of energy & business development at pmccloskey@clearlyahead.com or Rhonda Bash, vice president of development at rbash@clearlyahead.com.
