HOW TO
BUSINESS MANAGEMENT
BY ADAM BROWN
Up With PPP Impact of the Paycheck Protection Program for one shop.
Right On Target Currently we are right on target for 100 percent forgiveness, as the PPP has worked beautifully and has kept all our crews on the job. Although the PPP process seems to be changing daily, every modification I’ve seen so far has been to our benefit. I believe the intent of the government is 16
Sign Builder Illustrated
that it wants all of the loans to be forgiven; and if not forgiven, any fund balance would be at a one percent interest rate, which is almost unheard of anywhere. We were a little bit more conservative with our application request amount, as we wanted to set ourselves in the best position for the approval. We also didn’t want to overborrow and take on too much debt. We’re especially grateful to Associated Bank for guiding co-owner Rick Rossetti and myself through the loan process and keeping us on the right track. Our Top and Bottom Lines We, like many others, took a lump on the chin this year. Because of the economic shut down, our sales were down about 50 percent in March and April due in part to customers holding back on purchases, but PPP allowed us to maintain our cash flow without having to send employees home. We tightened our belt, but we did so in
September 2020
very strategic areas and were allowed to keep our team together. I’m happy to report that our sales team exceeded our forecasts in May. Trending wise, looking at year-to-date sales revenue, we’re in a good position so far. Our company goal is always growth, not survival. That means we’re targeting
Rick Rossetti (left) and Adam Brown of Sign Effectz, Inc.
signshop.com
Photo: Shutterstock.com/ Vitalii Vodolazskyi
B
ack in March, things were heating up for small businesses. The COVID-19 pandemic was in full swing, and the economic lockdown was relatively new. Understandably many of us business owners were staring down a whole lot of uncertainty. Regardless of what you may think about the Paycheck Protection Plan (PPP), we are a poster business for this program. As we prepare for loan forgiveness, it’s become very clear how important this program is to the health of our country and our company.
