Ohio Manufacturer Turns to SBA for Assistance During Challenging Economies
American Manufacturing is a Toledo, Ohio, auto industry parts maker that was founded in 1995. Prior to the 2008 recession, owner Chuck Gotberg employed 125 people, but when the auto industry was devastated by the downturn, orders dropped and the company was reduced to Chuck and one other employee.
When the auto industry rebounded, American Manufacturing did, too, with the help of a $1.2 million SBA-guaranteed loan to refinance debt and have working capital. As the economy has grown and stabilized, orders for goods have taken off, and the company added workers and automated equipment.
The company also used funds saved from the Tax Cuts and Jobs Act of 2017, specifically the Qualified Business Income Deduction (QBI). The tax savings has helped the company to meet new orders from auto makers. "The changes to the QBI and lower overall tax rates will benefit me the most," said Chuck.
During the COVID-19 pandemic, the company turned once again to SBA, and received two Paycheck Protection Loans (PPP), through Waterford Bank, to keep its workforce employed during the crisis.
American Manufacturing is now back up to a workforce of 125 individuals and is growing, due in part to the extra funds from the Tax Cuts and QBI. Chuck is putting the extra funds from tax relief into workforce development -- even going so far as to advertise for trainees on social media -- and is further automating his plant with equipment such as robotic welding machines.