batavia
Graham Manufacturing eschews layoffs while plant closed, returns PPP loan after Treasury changes rules for publicly traded companies
Graham Manufacturing, a publicly traded company, made the decision at the start of the coronavirus pandemic to stop almost all manufacturing operations but keep its entire workforce on the payroll -- including 320 of its Batavia-based employees.
"We continue to pay wages and full benefits to all of our employees," said Jeff Glajch, Graham's chief financial officer.
Keeping employees home helps keep them and the community safe, Glajch said, but also means the company's expenses are exceeding revenue.
When the Payroll Protection Program was announced, with rules that allowed any company with 500 or fewer employees to apply for forgivable loans of up to $10 million to help cover wages and salaries for workers, Graham applied for a loan. There was no stipulation in the first set of rules released by the Treasury Department that discouraged publicly traded companies from accepting the loans.
Graham received a $4.6 million loan.
"We felt at the time it was a legitimate application based on the guidance by the SBA (Small Business Administration)," Glajch said. "Last Thursday, the Treasury changed the guidance on publicly traded companies and suggested that publically traded companies should not receive loans. We felt based on the new guidance that we would return the funds and the funds have been returned, based on this guidance, well before anyone reached out to us."
The loan was repaid along with interest for the two weeks the company possessed the funds.
The Treasury changed the rules for loan eligibility after news reports about publicly traded companies such as Shake Shack and Ruth’s Chris Steak House received loans. The reports helped raise awareness of well-capitalized companies receiving taxpayer money at a time when many small businesses were unable to tap into the initial pool of $350 billion because the first round of loans was oversubscribed.
Congress has since added another $480 billion to the stimulus package but critics have maintained that publicly traded companies getting loans when they have access to financial resources out of reach to very small businesses is against the spirit of the program.
Glajch said he understands the concern. He said many people view the spirit of the program to help very small companies, particularly restaurants and local shops, who have been hard hit by closures. He said many people view companies with one to 50 employees as needing the most help, but the actual rules allow companies with fewer than 500 employees to apply for the loans.
Those companies with fewer than 500 employers include some of Graham's competitors and those competitors are not necessarily publicly traded. Even though those companies are not publicly traded it doesn't mean they aren't well-capitalized, Glajch said.
"My concern is that we have competitors that are privately held with 200 to 300 employees that have access to capital and, especially grants, that we don't," Glajch said. "There are ma-and-pop's that are struggling and they need this funding and if that was the intent, that was great. It makes sense to fund them and but not our competitors who are much larger."
Besides the 310 employees locally, Graham employs another couple dozen people in other locations.
Graham could have remained operational. It is an essential business according to New York's pandemic rules. It makes equipment essential to the oil industry and to the Navy. Glajch said the company decided it was more important to keep employees safe than to keep the manufacturing plant open. The firm scaled back to about 20 employees working to fulfill its Navy contracts.
"This is a stressful time for everyone and one of the things we didn't want was for our employees to be concerned about was their financial condition," Glajch said. "This is obviously tough of families so we made the decision to continue to pay our employees. It's important for our employees but it's also important for the community. If they aren't making any money they don't have the ability to spend and that impacts the community also."
Graham is phasing in the return of its workers.
"This is a pretty dramatic change in safety practices and cleaning and sanitation practices," Glajch said. "We've put social distancing rules in place and are slowly bringing people back. We thought bringing back everybody at once was too aggressive. We want to make sure our employees are trained and working in a way that meets all of those safety criteria."
Much of Graham's customer base is the oil industry and coronavirus hits at a time when Russia and other OPEC-block countries were in an oil production dispute, driving down the price of oil, and with people traveling less, oil prices have declined sharply on top of that dispute. So far, that shift in the market hasn't affected Graham, but Glajch said "that will take more time to fully play out."
Investors were informed up-front of Graham's plans to stop production but keep paying employees and there has been no push back from investors, Glajch said.
"Investors understand what we're doing," Glajch said. "They understand we're burning cash by keeping people on payroll. I think at the time we had the conversation, no one wondered how long this would be going on, that they felt this would be finite, like a month or two, and they understood what we were doing."
Pallin' around with Tully the Turtle
Reader Nya Thomas sent us this picture this afternoon of 9-year-old Gunnar Thomas with his grandpa Dave Twichell grinning alongside Tully the Turtle outside Tully's restaurant on East Main Street in Batavia.
Looks like Tully the Turtle is being a good sport about wearing a face mask in public during the COVID-19 pandemic.
Harvester Avenue motorcyclist dies from injuries sustained Saturday in crash with bicyclist on Route 5
From the Genesee County Sheriff's Office:
A motorcyclist succumbed to injuries yesterday that he sustained in a crash with a bicyclist Saturday (April 25) on Route 5 at Wortendyke Road in the Town of Batavia.
Joshua T. Fullmer, 27, of Harvester Avenue, Batavia, was transported by Mercy Flight to Erie County Medical Center after his 2014 Yamaha collided with a bicycle late in the afternoon.
Cassidy A. Underhill, the 16-year-old bicyclist, was northbound on Wortendyke, attempting to cross Route 5 when the accident happened. She was also airlifted to ECMC and remains in serious condition with multiple injuries.
The crash remains under investigation by the Genesee County Sheriff's Office.
For previous coverage, click here.
Sponsored Post: Celebrate seniors with customized signs from Hodgins Printing
So many of our high school seniors are missing out on the recognition that they deserve this year. Why not show your support with a customized sign or banner letting your neighbors, friends, and family know how proud you are of them.
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Clover 'the rover' is roaming around the Raymond Avenue area of the city
The little lemon-lime-eyed minx above lives in the area of Raymond Avenue in the City of Batavia.
Her name is Clover and she's a rover, having "slipped out" under cover of darkness Saturday night.
Clover is solid black, 5 years old, petite and "very shy." She has a pink and black collar with a weensy bell dangling from it.
She is the pet of two little girls who "are devastated" by her disappearance. Their brother is not too bothered by the situation, according to Dad, because he holds no strong opinion of the feline one way or the other.
Asked about sundry details that make Clover special, Dad says she's goat-like, in that she butts her head into you robustly when she wants to be petted. And Clover is a tad obsessive-complusive about grooming, to the point of having thinned out her fur on her bottom half and her tail.
He said she reminds him of the cartoon character "Toothless" from the DreamWorks animated film "How to Train Your Dragon."
The other cat in the household goes in and out all the time, but Clover never gave any indication she was the least bit interested in the outside world.
It is possible, Dad, we asked, that she plotted this breakout long ago and was waiting for the opportune moment? (Who was training whom?)
Dad thinks someone should come up with a Tile for finding missings pets, just like they have for missing car keys. He's sure there's a market for that. He'd buy one.
If Clover is found or spotted, please call 297-9080, or email: bhoag@wellsvillegroup.com
Poetry Month: Mike Hodgins reads 'House by the Side of the Road' by Sam Walter Floss
Mike Hodgins reads "House by the Side of the Road" by Sam Walter Floss. Mike said this poem was one of the favorites of his father, John Hodgins, the late local artist and county legislator.
Video: Message from Pastor Roula Alkhouri, Batavia First Presbyterian Church
Message from Pastor Roula Alkhouri, Batavia First Presbyterian Church: April 26th -- "What is Saving Your Life Right Now?"
Two people seriously injured in bicycle, motorcycle accident on Route 5
A bicyclist and a motorcycle rider were both seriously injured this evening in a crash on Route 5 at Wortendyke Road, Batavia.
A 17-year-old female from Batavia, whose name was not released, was riding a bike northbound on Wortendyke, according to the Sheriff's Office, when she attempted to cross Route 5.
Joshua Fullmer, 27, of Harvester Avenue, was eastbound on a 2014 Yamaha motorcycle.
The motorcycle collided with the bicycle.
Both patients were transported by Mercy Flight to Erie County Medical Center.
The crash is being investigated by the Sheriff's Office. Charges may be pending.
Also responding to the scene were the State Police, Le Roy Ambulance, Town of Batavia Fire, East Pembroke Fire, Mercy EMS, and members of the Emergency Management team.
Photos by Alecia Kaus/Video News Service.
Batavia PD warns about dangerous cocaine mix after two overdoses
Press release:
The Batavia Police Department wants to warn citizens of a dangerous mixture of cocaine currently on the street. There have already been two overdose cases today.
The warning comes in an attempt to stop further overdoses, which can be fatal. Police are working to locate the source and put a stop to further incidents.
Victim information and statuses are not being released.
Anyone with information can contact the Genesee County Drug Task Force at (585) 343-3020, the Batavia Police Department at (585) 345-6350, the confidential tip line at (585) 345-6370 or online here.
The Batavia Police would also like to offer assistance to persons who are struggling with addiction. Through our Police Assistance Addiction & Recovery Initiative, or PAARI program, we have partnered with the Genesee-Orleans Council on Alcoholism and Substance Abuse (GCASA) in an effort to decrease the number of opiate-related deaths and reduce the crime associated with opiate abuse.
Anyone who is struggling with addiction can come to the police department 24 hours a day, 7 days a week and we will assist in locating a treatment program, with no questions asked. We strive to help and support those who are looking to break the chains of addiction.
Several citizens have taken advantage of the program and we feel this is another way in which we can help win the war against drugs!
Photo: Learning to ride an electric scooter
It's a beautiful spring day so Tiffany Martin helps Owen Elmore learn how to ride his electric scooter on Morton Avenue, Batavia.
Photos: Dinosaurs Downtown
A reader tipped us to a trio of dinosaurs marauding through Downtown Batavia. We hunted them down and shot them (with a camera) while they were passing by St. Joseph Roman Catholic Church.
Law and Order: Elm Street man accused of failing to stop at a stop sign and possessing pot
James Anthony Colantonio, 50, of Elm Street, Batavia, is charged with unlawful possession of marijuana and failure to stop at a stop sign. At 9:30 a.m. on April 20, Colantonio was arrested on the charges on West Main Street Road in the Town of Batavia after he allegedly failed to stop at a stop sign. He was released with appearance tickets and is due in Town of Batavia Court on June 11. The case was handled by Genesee County Sheriff's Deputy Jonathan Dimmig, assisted by Deputy Travis DeMuth.
Justin O. Porter, 28, of Bennington Street, Rochester, is charged with: aggravated unlicensed operation of a motor vehicle in the third degree; unlawful possession of marijuana in the second degree; unlicensed operator; and speeding. According to the Genesee County Sheriff's Office, Porter was stopped in the area of Swan and Ellicott streets in the city at 5:27 p.m. March 23 following the alleged observation of a vehicle and traffic violation. After an investigation by members of the Genesee County Drug Task Force, it is alleged that Porter possessed some marijuana and was driving while his privilege to do so was suspended in New York State. He was issued appearance tickets for June 2 in Batavia City Court.
Two local students named to dean's list for Winter Term at Elmira College
Elmira College released its dean's list for Academic Achievement for the Winter 2020 Term. The dean's list recognizes full-time undergraduate students who were registered for at least 12 computable credit hours and who earned a term grade-point average of 3.6 or higher.
Students recognized include:
Lydia Milligan, of Pavilion
Kyra Stella, of Batavia
Founded in 1855, Elmira College is a private, residential, liberal arts college offering 30-plus majors, an honors program, 17 academic societies, and 20 Division III varsity teams. Located in the Southern Finger Lakes Region of New York, Elmira's undergraduate and graduate student population hails from more than 20 states and nine countries.
Elmira is a Phi Beta Kappa College and has been ranked a top college, nationally, for student internships. The College is also home to the Center for Mark Twain Studies, one of four historically significant Twain heritage sites in the United States, which attracts Twain scholars and educators from around the world for research on the famous literary icon.
Proud of its history and tradition, the College is committed to the ideals of community service, and intellectual and individual growth.
Photos: Jeep club gives 17-year-old a birthday parade then visits nursing home
The 17th birthday of Madison Fix was celebrated with a parade of Jeep Wranglers on River Street in Batavia yesterday followed by a visit by the Wrangler Club to Premier Genesee to wave hello to residents of the facility.
Photos submitted by Renee Wapniewski.