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Healthcare Heroes

While This Shelter’s Protocols Changed, Its Mission Never Did

The metaphor is an easy one to draw.

“If COVID was the invading army, all of us here — every one of us — had to set the wall and hold the wall and make sure folks were going to be safe,” said Keith Rhone, Operations director at Friends of the Homeless in Springfield, a program of Clinical & Support Options (CSO).

The reality, however, was much more complex. In its dorms, its kitchen, and places where clients meet therapists, clinicians, and other staff one on one, FOH was tasked, back in March, with implementing social distancing and a host of other protocols aimed at keeping everyone safe — both those delivering a broad range of services and those receiving them — while never shutting those services down.

That they did so, and how, makes the entire team true Healthcare Heroes.

“People have to gather here, so we’re potentially a hot spot. All the credit goes to the people who kept it from being that.”

“In some ways, we can’t do anything differently,” Clinical Director Christy O’Brien told BusinessWest. “We’re never going to shut down; we’re never not going to be here. Despite the social distancing we had to do, we’re never not going to be close to our people — not necessarily physically, of course, but we still need to know how they’re doing, how we can help, all those things. Where other places were forced to move to telehealth, that’s never going to work for us. The needs are still the needs.”

Those needs encompass not only shelter, but clinical services, such as mental-health and substance-abuse recovery coaching and therapy; housing — FOH has a number of lease-holding tenants; three meals a day; clothing and toiletries as necessary; transportation and delivery services; prescription pickups; case management … as Rhone put it, “the job here is whatever it takes.”

COVID-19 didn’t arrive at an ideal time, said Bill Miller, vice president of Housing and Homeless Services — not that there’s ever a good time for a global pandemic.

“We were coming out of a winter where we served more people and were more full than we had ever been in our history,” he recalled. “So it was a tough winter, and what the pandemic required was a complete shift in our mindset because our inclination and our mission has always been the same: how do we serve as many people as possible? So we wanted to continue to serve in the same way, but we had to adopt a whole new style.”

Among the changes, picnic tables and tents were erected outdoors — spaced apart — to accommodate distanced meal lines. Volunteers, who are instrumental in the service of FOH meals and other activities, were temporarily suspended. In the dormitories, some beds were removed, with overflow space employed in the dining room. Partitions went up, and guests were arranged head to toe when sleeping.

Some of the leadership team at Friends of the Homeless

Some of the leadership team at Friends of the Homeless, who had to quickly figure out new protocols in the spring while continuing to serve clients at the same level as before.

Additional temporary staff were hired to more regularly and thoroughly sanitize spaces, and hand-sanitizer stations were mounted throughout the campus. Dozens of donors and staffers designed and sewed homemade cloth masks so that each shelter guest would have reusable, washable masks.

Meanwhile, from the pandemic’s earliest days, before on-site testing became available, temperature screenings and interviews were conducted to alert the team to early signs, and as the situation progressed, Baystate and Mercy medical centers were quick to work with FOH on testing.

CSO also staffed and managed large tent facilities, which were erected in partnership with the city of Springfield and served as emergency accommodations in the event of positive cases (see the related story of another Healthcare Hero, page xx). When another shelter in the city needed to close due to guests testing positive, the CSO team was able to quarantine those who had been at risk and refer those who ended up testing positive to state-run MEMA isolation sites. FOH further assisted many of those individuals once their isolation periods were completed.

Why was all this critical? Simply put, while COVID-19 has swept through homeless populations in Boston, Worcester, and other cities, homeless individuals in the Greater Springfield region have been largely spared, thanks to the quick — dare we say heroic — work of the team at Friends of the Homeless.

“People have to gather here, so we’re potentially a hot spot. All the credit goes to the people who kept it from being that,” Miller said, adding that “there wasn’t one person who backed out, who wasn’t going to show up for work. We have a dedicated team who have been here for a long time. It was just incredible how everybody showed up.”

“I like the fact that we work in an environment that cares about people.”

It wasn’t lost on Miller that many people working at Friends of the Homeless fall into high-risk categories when it comes to COVID-19. “To have people come into work anyway is just striking.”

“Everyone came in and suited up and did the work,” added Delphine Ray, manager of Case Management Services. “They didn’t hesitate. This is our home away from home, and, by the grace of God, we managed to pull through.”

Dave Ware, men’s shelter manager, said he had many concerns about to manage the social-distancing aspect of the pandemic at FOH. “They really came together to figure out how to manage that in the dorms and kitchen. They came up with a good strategy to handle the social-distancing part.”

It wasn’t always a top-down strategy, Miller added. “There was a fad in business management some years ago — idea-driven organizations. That meant the ideas came from staff at all levels. That’s what we saw here. ‘What if we try this?’ ‘OK, let’s do that.’ Because this was something we’d never seen before, and we didn’t know what to do. And it ended up going well. Everybody was on high alert, and everyone had ideas.”

O’Brien also praised clients of Friends of the Homeless for taking the pandemic seriously and getting tested in the early days, before much was known about the virus and they were already preoccupied with some very real concerns, from mental health to lack of housing. “COVID wasn’t a primary concern for a lot of people. But they jumped on it when informed.”

He recalled warm moments, too, among upsetting ones — “incredible moments of humanity, seeing people come together in a time of crisis and fear. It was very genuine.”

That said, the need for the broad array of services provided by Friends of the Homeless to hundreds of people every day remains persistent, as does COVID-19 itself, as the cold weather approaches — not that those needs go away in the warmer months, Miller said.

“There may be peaks and valleys of needs; it’s not predicated only on cold weather. We used to see more of a lull in summer, but not so much anymore. And when times are hard economically…”

He didn’t have to finish that thought to register his point, which is, the tougher a community’s social and economic challenges, the more necessary FOH becomes.

“I like the fact that we work in an environment that cares about people,” Ware added. “When you look nationally and globally, you see so many people suffering, homeless, without food. We’re just a small place that takes care of those needs, but nationwide, so many people are suffering in this way. I’m proud to work in a place that takes care of people who need it. We’re one of the only places around here that does it on the level we do.”

As noted earlier, this is not an organization that can just shut its doors to the ‘invading army’ of COVID-19.

“We’re home for many people,” Miller said.

“And if we don’t do it,” O’Brien added, “who will?”

 

Joseph Bednar can be reached at [email protected]

Coronavirus

Trial by Fire

STCC respiratory-care students

STCC respiratory-care students Stefani Glukhova and Max La work at Baystate Medical Center.

Tallon Tomasi used to punch the same clock everyone else does when starting her shift as an LPN at the Leavitt Family Jewish Home in Longmeadow.

Not anymore. Because she works in a COVID-positive unit at the skilled-nursing facility, she enters by a different way than those in the negative units.

“Now, when we come in, we do this check-in system where we wash our hands, get our temperatures taken, we’re asked about symptoms related to COVID, about recent travels, recent exposure to people who have traveled. Then we get our gear, we wash our hands, and go to work.”

As a nursing student at Holyoke Community College, Tomasi is just beginning her healthcare career, and doing so right on the front lines of a global pandemic the likes of which haven’t been seen in more than a century.

Some aspects of it are tough to bear.

“The thing that’s very hard is not having family members being able to come in and see their loved ones as we are going through this difficult time,” she told BusinessWest. “Some of our patients have dementia, and not being able to see their families, it is challenging.”

“The thing that’s very hard is not having family members being able to come in and see their loved ones as we are going through this difficult time. Some of our patients have dementia, and not being able to see their families, it is challenging.”

That said, “I think our facility has done a good job,” she went on. “We do phone calls with family, and we do FaceTime, so I think that helps a little bit. But not being able to physically touch loved ones is hard for some of the patients and their family members.”

Tomasi paused to consider what else has been challenging about working in healthcare during the time of COVID-19.

“Everyone is so fearful of not knowing what’s going to happen,” she finally said. “That’s a big problem. We are not fully aware of how this thing will go, how to treat it, so the new big problem is fear — fear of the unknown. We don’t know everything about it, there’s anxiety around it, and I sometimes get scared because I know that I have the ability to spread it. But you know what has to be done — you have to help.”

With graduation — such as it is this year — just around the corner, many more nurses and other healthcare professionals are getting ready to transition from college into full-time work, but they’re facing an uncertain job market when so much of the sector’s energy is tied up in simply containing the pandemic.

“I checked in with some of our soon-to-be-graduates, and as far as the job market goes, I would say it’s pretty much up in the air and confusing,” said Kathleen Scoble, dean of the School of Nursing at Elms College.

On one hand, she noted, Hartford Hospital and St. Francis Hospital just down I-91 have responded “pretty expeditiously” to graduating seniors, several of whom landed positions right away. On the other hand, Baystate Medical Center has informed applicants that its new-graduate nursing program, traditionally a very popular landing spot for Elms grads, has been postponed.

Brooke Hallowell

Brooke Hallowell

“We have mechanisms to do more triage and problem solving with patients before they come to a place where they’re exposing themselves to others.”

But the need is great, she added, and Elms President Harry Dumay agreed, adding, “I’m proud of being part of this sector and proud of not only our institution, but all students and graduates on the front lines during these difficult times.”

Even if, as we’ll see, it can be a little challenging getting to those front lines.

Field Work

For Springfield Technical Community College, which boasts the largest health-simulation center in the Northeast, students not having access to campus means not being able to use those tools in their training, President John Cook said.

“That does hinder the potential of our students to finish, graduate, and work in these fields, which, if they weren’t in demand before, are certainly in demand now.”

That’s a major factor in nursing right now, Scoble said.

“If you ask students what our major responsibility is, it’s preparing them for licensure; it’s our primary responsibility as a program, to make sure they meet all their graduation requirements. And that has been a keen challenge the last semester; all of our clinical learning experiences were canceled — understandably.”

Carol Leary, president of Bay Path College, also noted that nursing students have had their clinicals put off — and there’s only so much that can be accomplished online.

“For me, that is a concern because many of them need to sit for their licensing exams before they can begin to work,” she said. “The accrediting bodies are trying to work with all the programs across the country to figure out how students can sit for exams.”

Scoble noted that only one testing site is open in the entire state where nursing students can take their licensing exam, known as the NCLEX, and that site is following CDC requirements for social distancing. “So you can imagine, with thousands of nursing graduates in the state, how long it will take for them to test the class of 2020. But they’re trying to open as many sites as they can.”

In Gov. Charlie Baker’s guidance when shuttering the Massachusetts economy in March, language was included allowing new nurses to practice without a license, if supervised by a professional nurse of equal or higher education.

“It’s really up to the employers how they would receive a new graduate who is not licensed, how they would recruit and receive them,” Scoble said. “We would provide any supporting documentation they would require.

“I checked in with some of our soon-to-be-graduates, and as far as the job market goes, I would say it’s pretty much up in the air and confusing.”

In the past, she explained, a typical student would agree to a position in early spring, then take the exam in June and start work around July.

“All that is unknown right now. Students would say the only thing they can control is finishing the program and preparing for NCLEX. We’re stressing to our soon-to-be-graduates to prepare for the NCLEX — and continue to prepare — until they have the opportunity to sit for the exam.”

In a similar situation, three respiratory-care students from STCC recently began working at Baystate Medical Center after applying for and receiving limited permit licenses, said Esther Perrelli Brookes, director and department chair of the Respiratory Care program. Eight other students have applied for limited permit licenses so they can work in the field.

“Students chose to study respiratory care because they want to help people. They want to make a difference,” Perrelli Brookes said. “I’m extremely proud of my students who are stepping up during this unprecedented health crisis. I’ve had many students reach out to say they want to find out what they can do now. I’ve been helping them get their limited permit licenses.”

“I was one of the first in my class to do it,” student Max La said. “It’s a good learning experience because other respiratory therapists are there and you can learn from them.”

The limited permit license means he can perform certain tasks, but not everything a fully licensed respiratory care therapist would do. “We can’t touch the ventilators,” he said, referring to the devices that some seriously ill COVID-19 patients use in hospitals.

At Baystate, La does not work with COVID-19 patients, but must wear a gown, mask, and other personal protective equipment (PPE), and he said Baystate takes precautions to protect him and others from contracting the coronavirus. “There’s always concern, but Baystate has a good policy. Everyone has masks, and they do temperature checks when everyone is walking in.”

STCC’s respiratory care program trains students skills in treatment, management, diagnosis and care of patients with breathing problems associated with diseases such as COVID-19.

According to the U.S. Bureau of Labor Statistics, respiratory therapists will continue to be in high demand at hospitals and medical facilities, with job growth of 21% projected between 2018 and 2028 — and that was before COVID-19 wrought what is essentially a respiratory crisis around the globe.

Seeds of Change

Demand should remain high in many health fields, said Brooke Hallowell, dean of the School of Health Sciences at Springfield College, though it may be uneven in the short term. Take physical and occupational therapists — in emergency-care settings, they’re playing an important role in patient care. But those who work with post-surgical patients for, say, joint replacement may find work more intermittent as many elective procedures are being postponed.

One area of growth is in the realm of telehealth, she added. “All of our health professionals are going through a rapid transition in terms of telehealth access, and Medicare and insurance companies are adjusting their policies related to telehealth, and reimbursement for telehealth visits is being revamped.”

These efforts are intended to reduce the spread of COVID-19, but the lessons being learned may be long-term, Hallowell noted.

“Instead of waiting in a room full of sick people to be seen at the doctor’s office, we have mechanisms to do more triage and problem solving with patients before they come to a place where they’re exposing themselves to others. I think this is here to stay … how we carry out our practices will be changing in big ways.”

Interest in some health programs may shift as well, she added. For example, cardiopulmonary rehabilitation, a specialty within physical therapy, is getting more attention for the vital role it plays in COVID-19 treatment. And Springfield College is probably launching its new undergraduate program in public health this fall at the right time, too.

“We expect that will be a popular major, as people become more aware of what public health and epidemiology are,” Hallowell said. “That’s good timing for us.”

Christina Royal, president of Holyoke Community College, told BusinessWest that a great deal of first responders, nurses, and other healthcare workers have taken classes at community colleges like HCC at some point.

“When I think about our role in ensuring that we have the workforce talent we need in healthcare, which is the primary sector in Western Mass., I think it’s important that we continue to think about the kind of training we’re doing and how to continue to support this community.”

Scoble doesn’t foresee a time when nursing is not an in-demand profession.

“I’m not sure what we’re going to experience over the next few months,” she said. “A lot has to do with how we come back as a country, as a state, and as a community, but I have no doubt that every single one of my graduates will land a position at some point. If this was a normal period of time, a normal spring, many of the graduates would be on the fringe of accepting a position. They would have had interviews and been called back. Right now, a lot of that is at a standstill.”

When they do land jobs, Scoble added, “they’ll have the knowledge and skills and competencies, but lack a great deal of experience. So my number-one concern is, will they enter a work environment where they have the kinds of orientation and support they need? It’s definitely a concern.”

Stefani Glukhova, one of STCC’s respiratory-care students who started working at Baystate in March, may put some of those concerns to bed.

“All the staff here are very kind and generous and are always willing to help you,” she said. “As it gets busier at the hospital with fighting COVID-19, the registered respiratory therapists work around the clock to help fight the virus. My fellow classmates and I do our very best to be available and help out with treatments, floor therapies such as chest physical therapy, and much more.

“This is an amazing learning experience that I would recommend,” she concluded — even if it comes during a pandemic that no one would ever recommend.

Joseph Bednar can be reached at [email protected]

Commercial Real Estate Sections Special Coverage

Hitting ‘Pause’

 

 

Evan Plotkin calls it the “trickle-up effect.”

He was referring specifically to the pressures placed on the owners of multi-family dwellings and apartment complexes — and also to those landlords’ vendors — when, as a result of job losses forced by COVID-19, tenants cannot pay their rent, yet they’re protected from eviction by state and/or federal legislation.

“Multi-family property-management companies and landlords may be impacted disproportionately to the extent that there are forgiveness rules being discussed that would loosen rent-payment obligations and allow residential tenants to defer rent payments,” he said. “Clearly, unless there are provisions for the property owners to be made whole on the deferral or forgiveness of rent, it could create a variety of economic hardships to those property owners.”

But the trickle-up effect applies to virtually all types of commercial real estate and fallout from COVID-19, said Plotkin, president of Springfield-based NAI Plotkin, who tragically lost his mother to the virus earlier this month. He and other property managers who spoke with BusinessWest noted that the pandemic has forced the closure of all kinds of businesses and severely impacted the cash flow of almost all others. And this has obviously made it difficult for some to the pay the rent.

Some tenants have requested deferrals or other forms of help, but others didn’t exactly ask. They essentially just took them.

“I have some tenants, large, strong companies, that have sent letters saying they have stopped all payments to all vendors, landlords, etc. — period, without any time frame,” said Ken Vincunas, president of Development Associates, which has co-developed and now manages a number of office and retail properties in Western Mass. and Connecticut. “There was no explanation, really, just ‘we’re strong and we’ll be back, but … we’re not paying you.’”

Vincunas, who was in the process of writing e-mails to those at the top levels of those companies saying that such tactics were “un-American, like hoarding, and not the right thing to do,” said many other large companies have been far more diplomatic, with actual requests for 50% of rent payments, with offers to pay it back over the next six to 12 months.

Meanwhile, others we spoke with said they are working with tenants while also introducing, or reacquainting, them with the phrase force majeure (more on that later).

Ken Vincunas

Ken Vincunas

“There was no explanation, really, just ‘we’re strong and we’ll be back, but … we’re not paying you.”

But issues with collecting rent comprise just one of the many COVID-19-related challenges now facing commercial real-estate brokers and managers. Others include trying to do business differently, with many people working remotely; a dramatic slowing of activity within the market as companies pause to assess the damage and debate whether to move forward with planned deals; and emerging concerns that, as time goes by and companies see the advantages to having people work at home, companies may adjust their needs for space downward in the years to come, creating more problems for building owners.

“Businesses are getting a test run right now with working from home,” said Plotkin. “And if that works for them, there’s a strong possibility they might want to continue that, which would create havoc in the office-leasing market — and the office-investment market.

“Everything flows from the occupancy of your building,” he went on. “If your building becomes less occupied, it’s worth less, the market value goes down, and it triggers all kinds of things that are not necessarily good for the office-business market; that’s a clear fear that we have.”

Jack Dill, a principal with Springfield-based Colebrook Realty Services, which manages a number of properties across the region, agreed, but offered the hope that these ongoing experiments will lead some to conclude, as he has, that having people working in one place promotes collaboration.

“Work is a social enterprise — it’s about relationships, and it’s about trust,” he told BusinessWest. “It’s about the free flow of information, and that’s a lot harder when people are disbursed.”

Vacancy Signs

As he talked with BusinessWest in mid-April, Vincunas noted that he had recently sent in his application for relief from the SBA-administered Paycheck Protection Program.

The application was made to essentially cover the costs of keeping the staff at Development Associates’ small office in Greenfield — located at the Greenfield Corporate Center, which the company manages — on the payroll.

And that’s just one of a long list of COVID-19-related hardships that the company is coping with. Indeed, Vincunas noted that one staff member, concerned about the health risks associated with coming to work, abruptly retired several weeks back, prompting some shuffling of duties and leaving the company generally short-handed.

“She didn’t want to leave the house,” he noted. “And that really set us back. She retired, and that was that, leaving us to pick up the slack.”

The story is generally the same with other property managers and brokers, who are, like businesses in virtually every other sector, coping with new realities when it comes to where and how work is being conducted.

Evan Plotkin

Evan Plotkin

“Businesses are getting a test run right now with working from home. And if that works for them, there’s a strong possibility they might want to continue that, which would create havoc in the office-leasing market — and the office-investment market.”

As for business itself … on the brokerage side, things have slowed considerably, as might be expected given the vast amounts of disruption, fear, and general uncertainty caused by the pandemic.

But some deals have been completed. Vincunas said he signed on a new tenant at the beginning of the crisis, and some smaller build-out efforts — being undertaken “slowly and carefully to ensure social distancing” — are in progress.

Dill said the ‘deal flow,’ as he called it, is still moving, and his company closed on a few leases early in April. Properties are still being shown, he went on, albeit carefully, and while observing certain protocols, such as frequent use of hand sanitizer and sanitizing frequently touched surfaces.

But, like others we spoke with, he noted that, as the crisis has continued, the pace of business has slowed, and many who were in the exploratory stages of a potential move have backed off, waiting for the skies to clear.

“We’ve had some say, ‘interesting, attractive property, we’re interested, but things are so unsure, let’s let this settle down and we’ll re-engage at the other end of this.’”

Vincunas agreed. “At the beginning of this, I lost three hot deals that were going ahead, and none of them have come through,” he said, noting that one involved a building in Agawam he was going to buy and lease to an interested tenant. That interest is now gone.

“I had two other tenants who were going to lease space in a building we own already, and both of them said, ‘we have to slow down, things are changing … we don’t know,’” he went on. “Everyone has this uncertainty, and they’re thinking, ‘let’s not do anything for a while.’”

As for existing tenants, while some are experiencing something approaching business as usual — Vincunas has a kidney-dialysis venture and an ambulance company in his portfolio of tenants, and they certainly fall into that category — many have been forced to close their doors because they’re not essential, and most others are hurting to some degree.

Therefore, property owners are working with these tenants, offering some deferrals on at least a portion of their rent, Plotkin explained, noting that there is what amounts to a ‘base rent’ amount in each lease, as well as an additional amount to cover operating expenses, including security, cleaning, utilities, and others.

“The base-rent amount can be deferred, not abated, for a period of time,” he explained. “But the amount for operating expenses can’t, because we still have to keep the lights on, and we still have to pay the bills.”

Extraordinary Times

This brings us back to ‘force majeure,’ a common clause in contracts that essentially frees both parties from liability and obligation when an extraordinary event or circumstance — such as a war, riot, hurricane, or flood — prevents one or both parties from fulfilling their obligations under the contract.

A pandemic certainly fits that description because some businesses have been forced to close by state decree, and almost all others have been negatively impacted in some way. It’s the force majeure clause that no doubt prompted those letters that Vincunas described earlier.

Dill said Colebrook is working with clients on a case-by-case basis, and is working with tenants experiencing hardships. Like the others we spoke with, he referenced the trickle-up effect, or the ripple effect, that tenants not being able pay some or all of their rent will generate.

“When you go to the next circle out … if landlords have tenants who can’t operate and therefore don’t have the cash flow to pay rent and other changes, that immediately impacts landlords and their ability to meet their obligations, including debt service,” he explained.

While coping with the present, those we spoke with are also looking to the future, and they project that the pandemic will change the landscape in perhaps profound ways.

For starters, Vincunas believes that the current trend toward more purchases being made online, with items — from groceries to books to sporting goods — being delivered to the home will continue, and it will drive need for additional warehouse space.

“So many things are drop-shipped,” he explained. “The warehouse and logistics business is due for a big infusion of activity, just by the nature of a growing reluctance among people to leave the house.”

Conversely, this trend will negatively impact the retail side of the business, a trend that’s already playing out on Main Streets and in malls across the country.

But it’s the office sector that has those looking down the road most concerned. Indeed, those we spoke with said it’s possible, and perhaps likely, that companies will learn from this pandemic that there are advantages to having some people working at home and fewer people at the office. And, eventually, this will lead to downsizing and less overall demand for office space.

“The office market, and retail, are the two sectors of real estate that will be most impacted by this,” said Plotkin. “In the case of office, we were seeing some pretty good momentum right before COVID-19 — Springfield usually lags behind, but nationally, the office segment was doing very well. That has come to a complete standstill.

“And the fear amongst my colleagues is that people are starting to realize that this home-work model works for them, and will this replace the need for office space?” he went on. “It remains to be seen how this is going to play out, but that’s a real fear out there; as leases renew, those tenants might be evaluating whether they need the amount of space they occupied. They may do a home/office model that would reduce the amount of space they need.”

Those we spoke with are certainly hoping that, while businesses get this ‘test run,’ as Plotkin described it, they decide there are advantages to having co-workers in one place.

“That collaborative model is important for innovation,” said Plotkin. “Having people together in close proximity offers the sharing of ideas and collaboration in ways you can’t get with a Zoom meeting.”

Dill agreed. He said companies, and his is one of them, are experimenting with having workers dispersed and working from home, and some of the results are trickling in.

“It’s working pretty well,” he said. “But it’s not the same as having your people together, where they can meet casually, sit down in the same room, and solve a problem.”

Time and Place

Just what will come of the ongoing ‘test run’ of remote working remains to be seen.

What’s clear now, though, is that this pandemic is having a significant impact on the commercial real-estate market locally, and across the country.

The ‘trickle-up’ effect, as well as the trickle-down effect, are real, and as the crisis continues, the toll it is taking on this important sector continues to mount.

George O’Brien can be reached at [email protected]

Coronavirus

Mixed Bag

Matt Sosik helped Char Gentes

Matt Sosik helped Char Gentes secure a PPP loan through bankESB that kept Riverside Industries employees paid for eight weeks

Char Gentes calls the Paycheck Protection Program “a lifeline.” Her nearly 200 employees no doubt agree.

Gentes is the president and CEO of Riverside Industries, a nonprofit that serves people with disabilities, helping them find ways to achieve daily independence, from securing and maintaining jobs to undertaking activities like voting and going to the store.

In mid-March, the organization was shut down by the same mandate that has shuttered the doors on countless businesses and nonprofits across Massachusetts. Four weeks later, Riverside hadn’t laid anyone off — but that situation was unsustainable.

“We had been keeping our employees paid as we were waiting to hear what the state reimbursement was going to be; actually, a lot of nonprofits were doing that,” Gentes told BusinessWest. “The senior management, myself, and the board were all on the same page — we wanted to keep our employees home, we wanted to have their back, and we wanted, as much as possible, to continue to pay them 100% and make sure they had health insurance. These human-service workers are often people who live paycheck to paycheck.”

When bankESB approved a Paycheck Protection Program (PPP) loan to Riverside Industries, Gentes could breathe a little easier, as the loan will allow it to pay its employees for the next eight weeks.

“We’re grateful for those eight weeks, and we certainly hope to be able to open our doors sometime in June,” she said.

While Riverside’s Easthampton facilities are closed, its mission has not stopped, as the organization continues working with clients under a new remote service model. Without the PPP loan, Gentes said that she would be facing some difficult decisions on how to keep her organization operational.

That contrast — between desperation and relief — explains why so many small businesses are frustrated with the PPP, which quickly ran out of money, and also generated plenty of confusion in the banks where business owners applied for loans.

The PPP is a small-business stimulus program included in the federal government’s Coronavirus Aid, Relief, and Economic Security (CARES) Act. The PPP initially provided $349 billion for U.S. Small Business Administration (SBA) lenders like bankESB to fund loans to businesses in order to guarantee eight weeks of payroll and other costs to help businesses remain viable. To qualify, businesses must have 500 or fewer employees and demonstrate that they have been negatively affected by COVID-19.

When the $349 billion ran out in less than two weeks, the shortfall generated an immediate outcry — not only for a second infusion of funding, but because of news that large, national companies were claiming tens of millions in PPP funds while small businesses couldn’t get access.

That second round of funding — $310 billion in total, approved by the U.S. Congress on April 22 — may not last much longer, but banks have likely learned lessons from the first round.

Sense of Urgency

Matt Sosik, president and CEO of bankESB, remembers those first days of the PPP well.

“It was harrowing. They did, in fact, rush it because they felt the urgency … but the program was not ready for prime time,” he recalled. “When it rolled out, a lot of people were frustrated, but — and I’m not trying to sound defensive — I wish people wouldn’t blame local banks. We were in the dark; the customers knew what we knew, and it wasn’t enough. They didn’t provide enough instruction.

“In the end, we made it out on the other side, and we got caught up,” Sosik told BusinessWest in mid-April, noting that the three banks in the Hometown Financial Group family, including bankESB, approved $100 million under the program, and spent the next week getting money into the hands of the people who were approved.

“It was very, very difficult — a massive amount of work by our employees. They kept grinding and got us out on the other side of things,” he said.

U.S. Treasury Secretary Steven Mnuchin reported that, following the PPP launch, the SBA processed more than 14 years’ worth of loans in less than 14 days.

“The PPP enjoyed broad-based participation across the country from lenders of all sizes and a wide array of industries and businesses,” he noted. “From its start on April 3, PPP provided payroll assistance to more than 1.6 million small businesses in all 50 states and territories. Nearly 5,000 lenders participated in this critical program, including significant lending by community banks and credit unions. Nearly 20% of the amount approved was processed by lenders with less than $1 billion in assets, and approximately 60% of the loans were approved by banks with $10 billion of assets or less. No lender accounted for more than 5% of the total dollar amount of the program.”

“It was harrowing. They did, in fact, rush it because they felt the urgency … but the program was not ready for prime time.”

The majority of these loans — 74% — were for under $150,000, he noted, but that didn’t stop a swell of outrage following reports of large companies, from Ruth’s Chris Steak House to Hallidor Energy, claiming eight-figure PPP loans.

Few in Washington balked at the need for additional funding. The second round of $310 billion is part of a larger, $480 billion relief package that also includes money for hospitals and expanded COVID-19 testing. Of the $310 billion, $60 billion will be set aside for smaller lending facilities, including community financial institutions; small, insured depository institutions; and credit unions with assets under $10 billion.

The Next Wave

Bankers hope for a smoother process getting the new funds approved.

“It got off to a rocky start and got a lot of bad press — I Googled and found maybe one story with a remotely positive angle to it,” Sosik said, before coming back to Riverside Industries. “This is a story about the good parts of humanity — the work Riverside does and our ability to play a small role in helping them stay alive. They do such incredible work, such necessary work.

“Riverside is a strong organization financially,” he went on. “It’s just that, when funding isn’t coming in, it doesn’t have a war chest to keep dipping into.”

As for Gentes, she’s hoping the loan helps her not only take care of employees, but prepare them to return when the governor says it’s OK to open the doors and restart person-to-person services.

“When we’re ready, we need our workforce to come back, and we need them to be ready to come back,” she said, adding that the organization’s roughly 150 clients are called once a week, maybe twice, to make sure they’re OK. “We’re in the process of developing remote learning, and assessing what each client has available to them in terms of technology to make this happen.”

Countless other small businesses and nonprofits have equally pressing needs, and could use a lifeline, she told BusinessWest. “Without it, a lot of nonprofits will go under.”

Sosik likes hearing that.

“I have to admit, it’s heartwarming to make a difference,” he said. “And I’ve heard some other good stories. There’s so much uncertainty — ‘I’ve put all my blood, sweat, and tears into my business; is it all over for me?’ To relieve that pressure has been a heartwarming experience for us.”

Joseph Bednar can be reached at [email protected]