In early August, Alpha-Omega Training and Compliance, Inc. (AOTC) became the first environmental remediation company in the industry to land a COVID-19 relief loan: a Main Street Loan from the Federal Reserve. Florida-based federal compliance experts in business since 2009, AOTC is thrilled that the federal government appreciates our company and is helping us continue to thrive during these unprecedented times.
Financial Stability: Recognized And Bolstered
As an EH&S (environmental health and safety) and emergency response company, it is critically important to AOTC’s clientele that we are sound and reliable — that we are not going anywhere. Financial stability is one of the core criteria that organizations use when selecting an environmental consultant, as standardly recommended by experts. Beyond concerns with our stability, our financial standing is also important since we often must assess the stability of contractors that we involve in projects.
Plus, AOTC’s financial hygiene and stability are reflected in the award of the loan. The Federal Reserve makes that abundantly clear not just in the program’s parameters but in its description that the loans are to be given to SMBs and nonprofits “that were in sound financial condition before the onset of the COVID-19 pandemic.”
Meeting The Challenge
These loans are not easy to get. First, you have to meet the qualifications of the federal government. Second, you have to meet the requirements of the lender, which have been substantial since the program’s parameters are not as attractive for lenders as those of the Small Business Administration’s (SBA’s) Paycheck Protection Program (PPP).
Additionally, both of those parties want to know that a company is not rent-seeking. Rent-seeking companies are opportunistically manipulating COVID-19 relief efforts for their own financial gain – grabbing what they can even though they will not benefit society with it.
Acquiring Companies That Are Struggling
The awarding of this loan shows the Federal Reserve believes AOTC is a company worth supporting. Plus, it reflects the fact that our planned use for the funds will help our industry and the general economy remain strong.
We will be using the loan to acquire other environmental remediation businesses that share our focus on quality but have been more harshly impacted by the pandemic. While this will help our business grow, it will also help reduce bankruptcies, while preserving other companies’ value by integrating it into our own.
About The Main Street Lending Program
The Main Street Lending Program is one of the ways the federal government is supporting independent businesses during the pandemic. Created through the Coronavirus Aid, Relief & Economic Security (CARES) Act, this program has been funded with $600 billion intended to help SMBs get through the economic downturn that accompanies the COVID-19 outbreak.
As with the PPP program, applicants contact registered lenders directly about the Main Street Lending Program. The Fed then buys 95 percent participation in the loans, with lenders having to retain a 5 percent portion. That partial retention is intended to keep banks from lending irresponsibly.
About Alpha-Omega Training and Compliance
Alpha-Omega Training and Compliance, Inc. is an EH&S (environmental health and safety) and emergency response company that was incorporated in Florida in 2009. Certified and registered with the SBA, Florida Department of Transportation, Society of American Military Engineers, and United States Coast Guard, we provide compliance, health & safety, and environmental solutions. Through our General Services Administration contract, we help companies meet high environmental and safety standards efficiently and cost-effectively.