In the News

A group of area business people who received assistance from the first round of stimulus funding from the Small Business Administration’s the Paycheck Protection Program met for a press conference Saturday at the Log Cabin in Holyoke to discuss the impact that the funding had on their businesses.

The CARES Act pumped almost $1.2 billion into the economy of Western Massachusetts, U.S. Rep. Richard Neal said Saturday.

Neal, as chairman of the House Ways and Means Committee, was one of the prime authors of the legislation that sent 10,460 loans to Western Mass. businesses. According to the federal Small Business Administration, $1,177,312,235 in loans of less than $150,000 each were made to area small businesses.

“This unprecedented program, made possible through the passage of the CARES Act, has saved businesses, it has saved good jobs and it has saved beloved fixtures in our communities that we all value and want to sure survive the COVID-19 recession,” Neal said.

A variety of businesses and nonprofits received assistance from the PPP, including the Springfield Symphony and the Marian Center in Holyoke.

Area restauranteur Andy Yee, of the Bean Restaurant Group, said he was grateful for the funding his company was able to access. The Bean Group operates 15 restaurants across the state, including the Student Prince in downtown Springfield and the White Hut in West Springfield.

“Immediately upon receiving these funds we were able to pay rent and utilities,” Yee said. “As time went on we were able to hire employees back incrementally and protect meaningful jobs with the PPP. The Bean Restaurant Group is extremely grateful to Congressman Neal and his team for leading the charge to ensure businesses in Western Mass. received these funds. Thanks to the relationships we have with banks, landlords and elected officials, including Rep. Neal, we are now open for business.”

Don Pion, the owner of Bob Pion Buick GMC, said the pandemic stunned him.

“When it first hit, none of us knew what to do or how this was all going to play out,” he said. “Our parts and service departments were considered “essential services” so we were able to keep some employees. But, we had to furlough quite a few. The PPP allowed us to bring back a lot of people, and we were able to keep insurance coverage for our employees while they were furloughed. This program was crucial. We would not have been able to go forward in the shape we are in if not for the PPP loan.”

Log Cabin owner Peter Rosskothen said restrictions on gathering size which disallowed groups larger than 50 people dealt his function business a substantial blow.

“We are still floating,” he said. “We have a large overhead. With the PPP we have a lifeline, but we are not out of the water and the PPP is not the end of the help we will need.”

Rosskothen also owns the Delaney House and Restaurant on Route 5 in Holyoke. He said the restaurant and hotel are operating at about 60 percent of levels seen before the pandemic.

Neal said Congress is now trying to pass a new stimulus package called the HEROS Act which would address Rosskothen’s concerns for continuing aid. But Senate Republicans are dragging their heels, Neal said.

“I think it is irresponsible when you consider the House passed the HEROS Act 10 weeks ago. It is going to be extremely important for people,” Neal said. “There is money in there for state and local governments, which is clearly important as we try to reopen schools in the fall. There is more money for hospitals and unemployment insurance. You would think that the current resurgence of the coronavirus would be getting people to think about getting this assistance done as soon as possible.”

Neal said House members are on a 24-hour recall notice in case negotiators from the Senate, the House and the White House come to an agreement.

Sister Miriam Najimy said the federal loans helped the Marian Center take care of the people who take care of the older Daughters of the Heart of Mary.

“We are grateful that we were able to get the CARES funding,” Najimy said. “We were able to treat our employees with dignity and respect their struggles. That means a great deal to us. We consider (the PPP) a wonderful gift.”