Plastics Industry Association receives PPP funds
The Plastics Industry Association received $ 1.17 million from the Paycheck Protection Program after meeting the demands of struggling nonprofit groups during tough economic times.
The Washington-based trade association asked for relief under an extension of the Economic Aid Act for small businesses, nonprofits and hard-hit sites, which became law at the end of the year. ‘last year, according to Brendan Thomas, the association’s vice president of marketing and communications.
The cancellation of NPE2021 due to the COVID-19 pandemic dealt a financial blow to the professional group, which represents approximately 1,000 machine builders, equipment manufacturers, mold makers, material suppliers, processors, processors and recyclers.
About 2,100 companies had made partial or full payments to exhibit at the NPE, which was scheduled for May 17-21 at the Orange County Convention Center in Orlando, Florida.
Founded in 1937, the commercial group has been present since 1946 and depends on it for its income.
Thomas said the group “made budgetary adjustments to absorb the financial impact and applied for a PPP loan under expanded eligibility rules to retain employees and continue their work.”
The $ 1,166,125 in PPP funds will go to the payrolls of 50 employees, according to information about the coronavirus rescue loan on ProPublica.com, a non-profit investigative newsroom.
First-draw borrowers can receive full loan forgiveness if they maintain employee and compensation levels for eight to 24 weeks after disbursement.
Borrowers must also use the loan for qualifying expenses and spend at least 60% of salary costs to be eligible for loan cancellation.
Asked what the Plastics Association would have done without federal help, Thomas said, “Fortunately, careful budget planning, savings and programs like the Paycheck Protection Program have made it possible. [the association] to continue to serve its members and the industry during COVID-19. “
The association’s budget problems had a ripple effect on some of the companies that had planned to participate in NPE2021. Some exhibitors have made 50 percent down payments for booths that cost up to $ 100,000, while others have paid in full.
The association announced on January 22 that the first half of the booth fee had been spent on planning the huge triennial fair and would not be reimbursed.
“NPE can be every three years but the production is constant,” Thomas said. “We use deposits to produce the show.”
Companies that have paid in full can get a refund of the second half of their stand fees or apply the amount to association membership or NPE2024.
“Providing refunds on the remaining 50% will be a huge financial blow to the Plastics Industry Association, as will the payment of unpaid accounts for NPE, of which there are many,” Thomas said. “Our members and exhibitors are not the only ones we are setting up right now. There is a lot to do to make the show happen.”
Group staff are in the process of contacting all exhibitors and members about their options, Thomas said.
“The conversations are going well,” he added. “We haven’t contacted everyone. We have exhibitors all over the world and reaching everyone takes time. We work with foreign counterparts and build on our personal relationships.”
As association staff tackle the complications of the canceled NPE, they are also planning the next one.
“Many exhibitors have chosen to apply their refunds to membership and deposits for a future show,” said Thomas.
NPE2024 is scheduled for May 6-10, 2024.
“We want to maintain the long-standing relationship we have had for this decades-old show. It will be as successful in the future as it was in 2018,” said Thomas.