In a historic effort, Congress passed a COVID-19 stimulus bill to help support businesses of all sizes and industries through bridge loans designed to help meet payroll and other expenses. As you can imagine, nearly every industry has been affected by the spread of the virus, meaning these loans will still likely be used by supplement manufacturers to help maintain their current business model. In this article, we will look at some of the benefits of the COVID-19 stimulus bill for supplement manufacturers and some ways it can be leveraged by companies looking for extra capital.
As a focal point of the legislation passed, many companies now have access to the Paycheck Protection Program that is available through the Small Business Administration. With this program, supplement manufacturers will be able to obtain loans of up to $10 million based on how much their payroll expenses throughout January and February of 2020. With rates capped at 4%, these loans can be used to cover paid leave, facility rent, utility costs or, as the name specifies, payroll costs.
It is important to note that, according to the language used in the legislation, these loans may be forgiven if employers hire workers and keep them employed throughout the loan term. Essentially this will mean that employers will only be charged for accrued interest and could be relieved from the amount disclosed in the primary loan. This incentive will not only help people that are actively searching for a job after being let go from a previous company but will also benefit supplement manufacturers deemed essential during the current shutdown and quarantine periods.
At the current time, the FDA has also temporarily postponed imposed routine inspections and are only doing “mission-critical” inspections for the foreseeable future. However, this doesn’t mean that supplement manufacturers should be less considerate of mitigating contamination. As a valued industry that can continue business as usual, it is more important than ever for supplement manufacturers to ensure they are slowing the spread of COVID-19 and maintaining even more stringent cleanliness policies. Even without the watchful eye of the FDA.
Looking for a New ERP Software?
If you are interested in learning more about Virtual Office or want to see how this powerful ERP software can benefit your supplement manufacturing process, we invite you to request a demo and try it for yourself. We are confident that our industry-specific supplement manufacturing software contains everything needed to help you manufacture your customer’s products faster while keeping manufacturing costs to a minimum.