PPP program critical for local organization

Through Fifth Third Bank, Goodwill Industries of Northwest Ohio uses loan to retain employees

Goodwill Industries of Northwest Ohio, Inc., a non-profit organization based in Toledo, was affected by the COVID-19 pandemic as non-essential businesses were forced to close. According to Amy Wachob, president / CEO of Goodwill, the situation placed an unbearable strain on its team members, many of whom were served through its mission programs.

“Although unemployment was available, we knew the struggles and frustration members were having in terms of applying for unemployment. The Payroll Protection Program (PPP) afforded us the opportunity to help team members to stay or return to our payroll, even during the shutdown. It also helped us to ensure that team members continued to receive medical benefits during the stay-at-home order,” said Wachob.

According to Wachob, once the organization understood the full scope of the application process, applying was relatively easy.

“It was a matter of gathering payroll and payroll-related records, which were readily available. Our lender, Fifth Third Bank, was a huge help in navigating through the data needed. They were instrumental in helping us to apply for and receive the loan monies. Our service representative was there every step of the way and was available to answer any question 24 hours a day. He ensured we understood the rapidly shifting parameters of the loan, what information was needed, loan forgiveness, etc.,” explained Wachob.

The organization submitted its application for the loan on a Friday, noted Wachob, and signed the loan papers on the following Monday. The funds were received on that Thursday, which Wachob described as a quick turnaround. The loan amount was equal to the required 2.5 months worth of payroll information.

“The PPP enabled us to recall team members and they were incredibly thankful that we were able to financially assist them during the stay-at-home order and business closure. We were also able to ensure a successful grand reopening and return to work by having the ability to pay team members to help with reopening efforts without revenue coming in through our retail stores. The PPP gave us a great opportunity to have the team back together and fulfill the requirements according to the Responsible Reopening measures issued by the State of Ohio,” said Wachob.

“Corporately, Fifth Third produced over $5.3 billion of PPP loans and averaged $147,000. As you might expect the average loan size in northwest Ohio was very similar,” explained Alex Gerken, senior vice president, senior commercial banker, northwest OH.

Gerken further shared, “The most recent changes impacting forgiveness were very borrower friendly. Companies can now include up to 24 weeks of payroll (versus 8 originally), meaning that a large majority of the loans should indeed qualify for forgiveness … While this was one of the most challenging programs the Bank has ever engaged in, we were honored both corporately and here in northwest Ohio to have such a dramatic impact on the employees of our clients. All told, the Bank will have impacted over 552,000 total employees across our multistate footprint.”

In regards to Goodwill’s plans to request loan forgiveness, Wachob explained that with the recent extension measures that were passed by the Senate, it is not yet at its loan forgiveness deadline.

“However, we will file for loan forgiveness and we have been able to use the funds in the spirit of which they were intended, which was to help team members through payroll during this difficult time,” said Wachob.

Wachob also went on to explain that the PPP was essential to the organization and its team members.

“As a non-profit organization, our cash reserves are closely monitored to ensure funding for the sustainability of our mission services. The PPP was a game changer for our organization during this pandemic and, while our stores were closed, to help us pay one of our largest expenses, which is payroll,” said Wachob. “On behalf of our team members throughout northwest Ohio, we would like to say thank you to our supporters who helped us during the shutdown and the stay-at-home order. Our mission of helping people with disabilities and barriers to employment link to jobs is a critical workforce development service that is needed in order to rebuild our communities and to transform lives.