A Small Business Loan Helps Music Production Company Keep the Beat Going During Pandemic Blues

As one of the early contributors to his niche industry, Pawlyk had sustained a competitive advantage and subsequently earned an extensive roster of clients. Prior to 2020, Pawlyk proudly employed more than 10 employees, including a variety of vocalists and producers. The business was steady, and his company received hundreds of production requests daily. As COVID-19 began to impact the day-to-day life of individuals across the country, his company lost a significant amount of business and suffered financially. Suddenly, theatres and studios were forced to close, travel restrictions were imposed, and the competitions that Pawlyk was providing music for were no longer being held. Overnight, the spending in Pawlyk’s industry virtually disappeared. In total, Pawlyk’s sales were down by over 50% in 2020.

As the COVID-19 pandemic was becoming more and more serious, it was not just Pawlyk’s business that was being affected, but an industry-wide trend. According to the U.S. Bureau of Economic Analysis, the performing arts and spectator sports industries added a combined value of $135 billion in Q1 of 2019 compared to 63.2 billion in Q1 of 2020.

Since business had plummeted so significantly, several of Pawlyk’s employees who were classified as independent contractors ultimately decided to pursue different work opportunities. For the remainder of his full-time employees, Pawlyk quickly realized that he would need to secure additional funding to ensure their retention and avoid the difficult decision of having to make any furloughs or lay-offs. Different industries were impacted by the COVID-19 pandemic, some more drastically than others. According to the Bureau of Labor Statistics, the 2019 Quarter 3 data compared to the 2020 Quarter 3 data reveals a decline in employment of “artists” by nearly a quarter of a million people.

During the first round of the Paycheck Protection Program (PPP) funding, Pawlyk was able to secure funding through a traditional bank. Shortly after the start of 2021, he realized that he would need additional working capital if he was to continue covering the payroll costs and operating expenses of his business.

"Once I realized I was going to need additional funding, I reached out to the same lender that I had received the initial PPP funds from. I submitted my application materials, but the approval process was taking weeks. After three months passed, I could not afford to let any more time pass without securing the additional funding that my business and employees needed."

Pawlyk ultimately decided to look for an alternative lending source and went on the website of his payroll provider, Paychex. While looking through the different resources on the Paychex website, he saw a section dedicated to Biz2Credit and the PPP loans that they were offering to small businesses at the time. Thanks to a one-of-a-kind partnership between the two companies, Pawlyk and thousands of other Paychex clients were able to apply for a loan with Biz2Credit just by clicking a button on their Paychex Flex dashboard. It was incredibly easy for businesses to get started with the process, as many ultimately did.

Pawlyk praised the ease of the Biz2Credit website and application portal for his quick access to funds.

Instead of waiting months for an answer, thanks to the advanced technology of Biz2Credit, Pawlyk had funds to pay his employees within days, and his business soon turned the corner along with the whole cheer industry. The loan allowed Pawlyk to continue paying his full-time employees but more importantly, he can welcome all of his staff, both full-time and contractors, back for the new competitive dance season that lies ahead.

To learn more about Pawlyk’s experience with the Biz2Credit online funding process, you can watch the Online Forum: The Paycheck Protection Program – A Retrospective and the Path Forward with Jeanne Shaheen (D-NH). Like Pawlyk, many small businesses need supplementary financing quickly and do not have an excessive amount of time to wait to receive those funds.Biz2Credit is proud to offer features that work to expedite the loan process and help clients get access to their approved funds as quickly as possible. Like Pawlyk, Biz2Credit clients enjoy features such as automatic qualification and data integration that help eliminate extra paperwork and speed up the loan application and approval process.