Founder Friday: Q&A With Small Business Owners

Interview With Business Owners Who Received PPP Loans

The story of the PPP — rightfully so — has been focused on poor rollout, dishonest lending practices, and misuse by large companies, but for every one of those negative stories, there are cases where the program is truly helping small businesses stay afloat and keep workers employed. Here are a couple of those stories.

The SBA has reported approving more than 1.6 million loans totaling $350 billion since April 3, but the Paycheck Protection Program rollout has been filled with confusion and challenges for the small business owners applying. From technical glitches to lack of response to the money running out before getting approved, thousands of businesses in the U.S. are still in jeopardy.

While many business owners still wait for relief, the ones who received money count themselves lucky they are able to pay employees and try to figure out how to remain viable for the long-term. We recently interviewed Connie Galati, owner of Galati Enterprises, Inc., and Eric Brody, owner of Shift Advantage, about how the PPP loan will affect their business, what they are changing, and where they think they will be after 8 weeks when the money runs out.

Tell us a little about your business.

Galati: Galati Enterprises, Inc. is a family-owned general contracting company based in La Quinta, California, serving the Coachella Valley since 1992. We specialize in residential and commercial remodels. Our target market includes new home buyers as well as seasonal homeowners, resorts, and country clubs.

Brody: Shift Advantage provides sustainability consulting services to companies ranging in size from small startups to Fortune 100 companies. We help our clients understand and reduce the environmental impacts of their products, services, and operations; and communicate their programs to customers. Oftentimes we are able to help companies reduce costs by managing and reducing energy use and waste, and proactively addressing risks and opportunities.

Where did you apply for a PPP loan? How was the process for you?

Galati: We applied for the PPP through both Pay Pal and Wells Fargo. The application process was fairly straightforward and took about an hour to complete each application. PayPal responded within 24 hours that our loan was approved, and our account was funded within 36 hours of applying. Although we applied to Wells Fargo, we were notified that their funds have been depleted.

How will the PPP loan help your business?

Galati: Many of our projects have been postponed or even canceled due to these unforeseen circumstances, making meeting payroll for our small company difficult. The PPP loan will allow us to continue to pay our employees, including our Superintendent, who has been with us over 30 years. It will also allow us to pay our health care benefits and workers’ compensation insurance.

Brody: We recently received funds from the PPP. We are using those funds to cover our costs during a downturn in business over the last few weeks. We are using this time to reach out to companies and let them know how we can use our supply chain knowledge to help companies navigate complex supply chains to the materials and products they need. We are also offering companies services to ensure that their employees and the workers in their supply chain are protected and safe.

Where do you think your business will be after 8 weeks when the PPP loan runs out?

Galati: Our hope is that in 8 weeks COVID-19 will be under control to the extent that our employees will be able to work safely in our clients’ homes, and our clients will be sufficiently confident in the economy to pursue their previously planned improvements. To be transparent, although we are hopeful for a positive future, we are simply taking this one day at time and are doing our best to remain grateful that our families have remained healthy.

What are you changing or doing differently right now?

Galati: We are doing far less projects than normal as well as only working one trade per project at a time. Most all our client and trade contact is virtual including presenting proposals and making material selections.

Brody: In the short-term we are helping companies quickly pivot to be successful in uncertain times. We are also developing business resilience plans to ensure companies have short-, medium-, and long-term success in this new business reality. COVID-19 is a preview of the immense challenges and impacts we will be facing over the next five to twenty years as a result of climate change. It is critical that businesses not only address the challenges of today, but also prepare for the increasing impacts we will be facing every year as a result of climate change.

What is the most positive thing you’ve experienced or seen during the pandemic?

Galati: We have very longstanding relationships with many of our sub-contractors and have worked together to keep morale high, both professionally and personally. Our common priority has been to keep our employees, clients, and their families safe, and we have definitely felt a sense of community throughout this time. Many of our sub-contractors have willingly reduced costs to meet budgets and keep projects progressing.

Brody: We feel fortunate that we have the opportunity to work with many leading companies to help them reduce their risks, costs, and impacts and help them develop opportunities for the future. If anyone would like to learn more about how their business can address the immediate and long-term challenges of COVID-19, climate change, and other risks, they are welcome to contact us at info@shiftadvantage.com.