Apr 25, 2020 5 min read

Known for his friendly demeanor, Dean Helfer Jr. has had his smile turned upside down.

Helfer owns Channel Craft, the toy manufacturing and distribution company he launched in 1983. And he isn’t happy with how the coronavirus – and government – have toyed with his North Charleroi operation.

“The government can’t just keep printing money. We need businesses to stay in business,” he said Thursday afternoon. “My wife and I want to keep this going for another 38 years, and we’re not going to do it watching TV news from my house.”

Channel Craft is among businesses Gov. Tom Wolf categorized as non-life-sustaining, then closed six weeks ago in a statewide edict intended to diminish spread of COVID-19. Helfer wanted to continue operating, but had to lay off his employees and shut down his five departments and three buildings. Only he and his wife, Shelly, are working on site because, as he put it, “We have orders to fill.”

“This is gut-wrenching,” Helfer said. “We invested resources in 20 new designs. We have orders we need to ship and need a crew to create them.”

He said the shutdown threatens not only his established operation, but the borough’s tax base. “This could be 30 more incomes lost for this community.”

There is, however, a glimmer for the Helfers and small business owners nationwide. Congress this week passed a second stimulus bill – $484 billion worth – that President Donald Trump signed Friday. About two-thirds of that figure – $320 billion – is targeted for the Paycheck Protection Program for small businesses, the rest for hospitals and coronavirus testing.

Funding for the PPP goes to the Small Business Association, which provides loans for businesses with fewer than 500 employees. The loans are to be used to pay staff for eight weeks, at an interest rate of only 1%, which may be forgiven if a firm does not dismiss employees. The amount requested for a loan is based on 2 1/2 times a business’s monthly payroll from 2019.

Money for small-business lending under the first stimulus package ran out quickly, though, amid a backlash that chains and large companies were getting loans.

Dean Helfer applied through the PPP program during the first stimulus go-round, and Channel Craft was not selected. “We’re still waiting,” he said, sighing. The company is eligible this time as well, and the owner can only hope it can emerge from a massive crowd with funding.

City Mission, in Washington, did get PPP funding recently, which enabled it to rehire 58 individuals. But owners of four businesses contacted for this story said they have not been selected, and a Washington County official, who requested anonymity, was unaware of any local recipients.

Chicco Baccello did not apply for PPP the first time, but did now, said Jim Martin, one of the owners of the downtown Washington coffee and luncheon shop.

A longtime tax preparer, Martin said a number of his clients have signed up for PPP. He was puzzled that large companies received funding from the first stimulus, but acknowledged “it’s hard to come up with a perfect program. It can be beneficial to a lot of people, a lifeline really.”

Despite losing a large lunchtime crowd, Chicco is still operating, providing curbside pickup. “We wrap a lot of sandwiches,” Martin said. “We’ve trimmed everything to the bone. I don’t think we’re making money, but we’re not getting killed.”

Up the hill and nearby, Angela Burgess and her husband, John, run two businesses: Washington Winery and Washington Brewery. Both provide curbside pickup and delivery; food and beer are available at the brewery.

Angela said they’ve applied for the SBA loans without success – thus far. “I don’t expect to receive anything,” she said.

“Everybody is experiencing the same thing, doing what we can to survive. We know we will reopen. We’re just waiting for the go-ahead. We have enough space at the brewery to space people out as we need to.”

Marketplace at Emerald Valley is hoping to be a loan recipient this time, said Alisa Fava-Fasnacht, owner of the Washington shop and a Scenery Hill dairy farmer.

”We’re doing well, holding our own,” she said. “We’re bringing on new product all the time. We’re now have cheese curds and other new cheeses will be coming in.”

Emerald Valley has al a carte store hours Thursday through Saturday – masks available – and virtual farm stand shopping and CSA Popup Boxes online, with curbside pickup.

Any business applying for these SBA loans must follow a detailed process. Jeff Kotula, president of the Washington County Chamber of Commerce, advises applicants that “it is important to remember that these loans are processed on ‘first-come, first-served’ basis and it is lenders that approve PPP loans, not the SBA.”

A loan would be nice, but Dean Helfer would like to be up and running again.

“We’re not unlike any other small business,” he said. “If we stop shipping and stop collecting on orders, we go out of business. There is no contingency fund if this happens. So I come to work every day and close the gate behind me.”