More than four years after the World Health Organization declared COVID-19 a global pandemic, and the state ordered shutdowns of large portions of the economy, life has slowly returned to a new normal. But for many business owners, that normal is one filled with debt and worry about the future. The federal government responded to the disruption with a bevy of programs aimed at supporting various critical services like local governments and everyday people through direct stimulus payments.
FITCHBURG, Wis. (WKOW) — More than four years after the World Health Organization declared COVID-19 a global pandemic, and the state ordered shutdowns of large portions of the economy, life has slowly returned to a new normal. But for many business owners, that normal is one filled with debt and worry about the future.
The federal government responded to the disruption with a bevy of programs aimed at supporting various critical services like local governments and everyday people through direct stimulus payments.
But the response for businesses came in the form of loans. More than 187,000 Wisconsin employers took Paycheck Protection Program loans to continue to pay staff and keep their lights on. Many of those loans were later forgiven, erasing what would otherwise be a debt burden for many small businesses.
But the Small Business Administration also distributed another set of debt: Economic Injury Disaster Loans. More than 40,000 Wisconsin businesses took over $4 billion in EIDL debt that has not been forgiven.
One of those businesses was Delta Beer Lab, a Fitchburg brewery and taproom whose owner, Tim “Pio” Piotrowski, has spent the last several years with a daily reminder of the pandemic.
“The folks that are still operating that got those loans are the ones that use them for the right purposes, that are still scrapping to get by,” Piotrowski said.
His EIDL debt is set up on a 30-year repayment plan, in addition to other private debt he incurred. Payments started coming due over the past year after an initial grace period. In Delta’s case, the amount is $500,000.
“It’s a mortgage on a house that we don’t own, and we have to generate profit in order to pay that back,” Piotrowski said.
Emotion wells in Piotrowski and brings tears to his eyes as he recounts the work he, his partner and employees must do everyday to keep their operation profitable.
“We toil every day, still not knowing if we make it,” Piotrowski said.
The company once offered revenue sharing with its employees, but has now transitioned to a tipped wage. It also used to contribute more of its sales directly to local charities. It used to give all of the tips it received to local nonprofits. That practice has ended in favor of giving a portion of its revenue on Tuesdays.
The company’s goal was to do well through doing good in its community. Piotrowski feels he should not have to compromise his commitment to serving his neighbors to keep the business open.
He is adamant that his business plan still works without the debt load that he felt compelled to take on and in order to save his business and employees. Now, he is calling on the federal government to repeat the forgiveness it exercised with the Paycheck Protection Program.
“The loan did what it was supposed to do, and now it’s time to take the burden off of our shoulders,” Piotrowski said. “Forgive the EIDL loans.”
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