EASTHAMPTON — Due to a federally assured and reimbursable Paycheck Safety Program mortgage by bankESB, Riverside Industries will proceed to have the ability to pay its workers, whilst its facility at 1 Cottage St. stays shuttered.
“It’s going to permit us to pay our workers for eight weeks and to pay their medical insurance,” stated Char Gentes, president and CEO of Riverside Industries.
Riverside Industries is a nonprofit whose mission is to empower individuals with mental and developmental disabilities. Though it closed its bodily location on March 16 as a part of efforts to restrict the unfold of COVID-19, it has continued to serve its purchasers.
Riverside Industries has helped to assist a few of its purchasers in making use of for unemployment, and has shared security data with them about measures to take to keep away from an infection by the coronavirus that causes COVID-19. An train class over the videoconference software Zoom can also be within the works.
“We’re re-creating ourselves,” Gentes stated.
Riverside Industries has greater than 250 purchasers and practically 200 workers.
For 4 weeks, the nonprofit has continued to pay its employees, regardless of getting lowered funding from the state because of shutting down its bodily location. Below regular circumstances, Gentes stated that seven-eighths of the nonprofit’s price range comes from state funding.
Persevering with to pay all its workers, Gentes stated, is “the proper factor to do,” including that quite a lot of the group’s workers stay paycheck to paycheck. “These are human service employees who want us to face behind them.”
Riverside Industries owns Cottage Road Studios, in the identical constructing the place it’s primarily based, and its tenants there have continued to pay hire. Though a hire discount has been supplied to those that want it, Gentes stated, many tenants have chosen to not take it.
The Paycheck Safety Program mortgage Riverside Industries acquired Thursday got here from Easthampton Financial savings Financial institution, with the cash assured beneath the federal program.
The financial institution, Gentes stated, helped the nonprofit navigate the appliance course of and get the appliance in swiftly.
“We would have liked to make clear precisely what numbers they wanted,” Gentes stated.
Matt Sosik, president and CEO of bankESB, stated that the mortgage to Riverside was the primary PPP mortgage that bankESB has delivered. Nevertheless, he stated that Hometown Monetary Group, which the financial institution is part of, is processing greater than 600 functions for such loans, and is about to inject greater than $100 million into the financial system in consequence.
Sosik support that offering cash in order that Riverside will pay its workers is “precisely what this program is designed to do.”
“It’s an enormous big constructive affect,” he stated.
Gentes declined to provide the complete quantity of the mortgage. Nevertheless, if all of it’s used for payroll and advantages for workers, because the nonprofit presently plans, Gentes and Sosik stated the quantity will probably be forgiven, as per this system’s pointers. The financial institution would then be reimbursed by the federal authorities.
Gentes stated that within the best-case state of affairs, Riverside Industries will open its bodily location up once more after eight weeks, and begin receiving its full state funding once more. However even when that occurs, Gentes stated, paying its workers for the previous 4 weeks whereas receiving much less cash has left a price range gap, and the group might want to elevate cash to cowl it.
Ought to the bodily location not reopen after eight weeks, Gentes stated, Riverside will probably be interesting to its donors, and taking a look at further grants and loans.
Bera Dunau may be reached at [email protected]