For a long, long time, one of the good things about living in the Midwest has been the presence of corporate giants like auto manufacturing and the steel industry. For every vat of molten metal coming out of a blast furnace, for every car rolling off an assembly line, dozens of smaller companies were spun off to produce bolts, pipes and bumpers. And then, there were the guys like Lorain's Jeff Wikel, whose trucking firm transferred those pieces and parts between factories. Life was good --- until about two years ago.
JEFF WIKEL: And then the economy hit, and Ford and Chrysler and GM and everybody went down and the business as a whole --- not just mine --- went way, way down.
Wikel lost 95% of his business. It took about a year for him to throw in the towel.
JEFF WIKEL: And that's just because I wouldn't give up, you know?. I was taking quite a beating. I wasn't getting any money for my own personal home. I was working to pay my drivers and that's about all it was for the last six months, probably.
He'd like to start a new business, but that requires some financial resources. And for the past year, that's been hard to come by. So, Jeff Wikel has a simple request of President Obama.
JEFF WIKEL: Instead of giving money to the banks, start investing in these companies in the area. Even decent credit doesn't qualify for a loan anymore.
That one's got Frank Detillio stumped.
FRANK DETILLIO: Did every bank in the country have toxic assets?
Detillio's the president of the local Chamber of Commerce, and he says there are over 5500 small companies in Lorain County, many in the same financial straits.
FRANK DETILLIO: The small business guy --- the guy that's got 40, 50, 60 employees is having a tough time finding capital to survive.
Detillio thinks the President should beef up the authority of the Small Business Administration which makes loans to local businesses.
Support can also come in the form of advice and mentoring. That's something that Richard Romero has been doing in Lorain for a number of years --- with a particular focus on the needs of minority businesses. In the rush to stabilize the national economy, Romero says small companies have been forgotten.
RICHARD ROMERO: I think that most businesses feel like they're on their own --- and they shouldn't feel that way. I find it real interesting that the "bail-out money" went to these big banks and larger corporations and, really, if you want to stimulate the economy, we should be helping those small businesses.
Local non-profits have also been hit hard by the economic downturn, and just like in the for-profit world, it's the big organizations that make the headlines, while the smaller non-profits… their clients… and employees suffer in relative obscurity. Palma Stipe runs a pre-school on the near eastside of Lorain.
PALMA STIPE: We've lost $15,000 a month in funding. I've had to layoff teachers, cut back hours. We've all taken a 30% pay cut.
With state support slashed over the past year, Stipe says non-profits like hers are teetering on the edge of closure.
PALMA STIPE: We have tried to look into getting some of that stimulus money, but unless you are involved with a larger organization who has been allotted some stimulus money, it's hard to even tap into that.
There does seem to be some federal funding flowing into Lorain for re-training, and now that Jeff Wikel's trucking firm is history, the 40-year-old is facing the future by going back to school. He just wishes he could be sure of what to study.
JEFF WIKEL: With renewable energy --- wind turbines and that --- I actually did look into doing that as my major. Literally, there's two companies in Ohio that are doing that, right now. And they have ten employees. So, the waiting list is huge. You know, in five years, it may be great, but in the meantime, I've got to feed my family.
Maybe the president will have some suggestions.
(David's report was the second in a three-part series. Tomorrow morning, a few hours before President Obama's community forum at Lorain County Community College, we'll have a story from WKSU about a local family that has been buffeted by the layoffs at Ford, but is still is hanging onto hope. )
