As COVID-19 flattens small businesses around the world, many are left to wonder how they should fight to keep the lights on. With the decreases in foot traffic, brick and mortar companies are the first to close. Stay at home orders remove the idea of leaving the house as a possibility, let alone a trip to the bakery for your morning muffins. The baking community has been affected especially hard during the pandemic. The US government responded to the outcry from small businesses with the Paycheck Protection Plan. The PPP offers small business loans to aid with the lack of income during such financially uncertain times. The PPP can be the saving grace for the baking community.
Some members of the baking community, such as Jesse Inguiez, critique the Paycheck Protection Plan’s ability to reach small businesses. She notes that the PPP's targeting of small businesses fails to reach what she refers to as “microbusinesses.” Ms. Inguiez highlights that “loans between $350,000 to $10 million went to firms with payrolls between $140,000 and $4 million a month.” She claims that the policy favored the comparatively larger small businesses versus “micro-businesses.” The baking community without question falls into the so-described “micro-business” descriptor. The micro-businesses are the Mom and Pop shops that form a community. But the baking community would be failing to adapt if they chose to not seek the monetary aid of the Paycheck Protection Plan that has already significantly aided the food industry.
Jennifer Senior, an opinion columnist for The New York Times, highlights the pitfalls of the Paycheck Protection Plan through the lens of Vera Tong. Vera Tong owns the bakery Du Jour in Park Slope Brooklyn. She “tried to access the money for four straight days through JPMorgan Chase. She got nothing but a plague of error messages.” The baking community is essential when it comes to defining one’s community. “They define and protect neighborhoods. They’re anchors and harbors all at once.” The difficulties of acquiring aid from the PPP is one of its downfalls and often results in businesses not attempting to try and receive aid.
Some bakeries such as Marion’s Pie Shop in Chatham, MA, refrained from seeking the monetary stimulus from the PPP. Fortunately, Marion’s maintain foot traffic due to conveniently timed easing of restrictions. While bakeries across the world were forced to adopt a litany of business survival tactics, Marion’s stuck to their secret formula, placing the eye-catching treats at around 3ft off the ground. 3ft is the ideal height for the glistening caramel and lava-like scene of a 7-layer bar to stare back at a child as they begin to rapidly tug at the pants of their parent. While this either ends in a treat in a child’s hands or a tearful scream, the shop’s methods are yet to fail.
While some in the community have found struggle with the Paycheck Protection Plan, it overall has been a tremendous help to the baking community. The PPP has distributed 513 billion dollars across 4.6 million loans to United States small businesses. The business quickly grew in reach. As of April 26th, the Paycheck Protection Plan supported only 38% of businesses seeking plan received aid while 75% of small businesses were applying for the PPP. Only 35 days later, the percentage rose from 38% to 71% of small companies receiving the monetary stimulus from the PPP. The Paycheck Protection Plan targeted manufacturing, health care, and the food industry as the three sectors receiving the largest amount of aid. Businesses are now allowed to query a loan of up to 250% of monthly payroll. The loan can also be up to $10 million dollars for the larger businesses seeking aid. The loan has allowed for the baking community to continue baking in times of immense struggle and keep the ovens on.
The baking community must capitalize on the monetary stimulus from the Paycheck Protection Plan in order to maintain sales and keep shop doors open. The loss of bakeries throughout the United States will result in the weakening of communities and loss of third locations. Places outside of the home and work where people are able to decompress and connect with others. The baking community must seek aid from the PPP in order to survive the pandemic.