Dealing with Unprecedented Challenges and Opportunities
Dear Michigan Manufacturer,
Over the past two weeks the Manufacturing Growth Alliance (MGA) has heard from numerous small manufacturers across the state. The challenges and opportunities you are facing are unprecedented. MGA is here to serve you.
Many manufacturers are figuring out when and how to bring back workforce to fulfill orders. Other manufacturers are analyzing cash flow to figure out how to get through the next few months. MGA is here to help you navigate resources to stabilize your manufacturing firm and position your business for growth. MGA is a two-way street too. We appreciate hearing about the emerging challenges you’re facing so we can help identify solutions.
Dealing with Cash Flow Issues
If you are currently dealing with cash flow issues, MGA recommends you review the Federal Reserve’s newly expanded Main Street Lending Program (MSLP) allowing more small and medium-sized businesses to receive support to help get through the pandemic.
The MSLP is designed to help credit flow to small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 crisis, but now need loans to help maintain their operations until they have recovered from, or adapted to, the impacts of the pandemic.
Loans originated under the program have several features that will help businesses facing challenges. The program offers 5-year loans, with floating rates, and principal and interest payments deferred as indicated in the chart on their website to assist businesses facing temporary cash flow interruptions. The loans range in size from $250,000 to $300 million – a wide range that may support a broad set of employers.
Planning for What’s Next
MGA thought through key elements of a small manufacturer’s journey to resume full operations. While all manufacturers are unique, there are similarities on what each of you can consider in the upcoming months.
MGA compiled information from multiple sources around the globe to provide you with a “COVID Recovery | Small Manufacturer’s Planning Guide.” The guide helps small manufacturers think through short and long-term aspects of resuming full operations. Please visit our Director’s Update page, which has additional resources to help small manufacturers.
MGA is here to support your needs to fully resume operations, maintain positive momentum post pandemic, and focus on future growth strategies. In addition, we invite you to "like" us on Facebook, "follow" us on Twitter, and on LinkedIn. If you have questions, feel free to reach out to our team.
With Gratitude, Jennifer Deamud Executive Director Manufacturing Growth Alliance