Washington, DC—May 27, 2020—A new survey of members of the Precision Metalforming Association (PMA) and the National Tooling & Machining Association (NTMA) shows the importance of the Small Business Administration’s Paycheck Protection Program (PPP) loan program, with more than 91 percent of respondents reporting that they have applied and received a PPP loan to retain employees that they would have otherwise furloughed or terminated.  However, more than 70 percent of respondents reported that they may need to furlough or terminate employees when their loan funding ends.

The NTMA/PMA survey showed that the top policy priorities for manufacturers are for Congress to extend the PPP term loan forgiveness from eight to 16 weeks, to allow for deductibility of business expenses paid with PPP proceeds, to extend the PPP’s deadline for loan forgiveness from June 30 to September 30 to rehire employees, and reaffirm congressional intent that spending 75 percent on payroll costs is not a requirement in the law.

The ongoing challenges of the COVID-19 pandemic were also evident in survey responses with 65 percent of manufacturers reporting that they expect customer disruptions for the next two to six months, and more than half reporting that they are receiving orders well below the normal rate. The majority of respondents also responded that customers are reporting longer payment terms or extension of permanent terms.

Full survey results are available here.

Many PMA and NTMA members have also converted their facilities to produce millions of face shields and other personal protective equipment (PPE), and make essential parts for ventilators and other medical supply equipment. A partial list of “Members Making a Difference” activities can be found on a COVID-19 resource page created by NTMA and PMA for their members at www.onevoiceinfo.org.

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