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The Main Street Alliance hosted a press conference and Q&A for small business owners on COVID-19[female[feminine grant and loan programs recently. Panelists from small businesses shared their frustration with the difficulties they have had to navigate the bureaucracy.
The Economic Disaster Lending (EIDL) and Paycheck Protection Program (PPP) are included in the CARES Act. They focus on helping small businesses.
COVID-19 stimulus paperwork
Amanda Ballantyne, Executive Director, The Main Street Alliance moderate. She didn’t fire any punches in her opening remarks on the paycheck protection program.
Hundreds of entrepreneurs
“I don’t think it’s an overstatement to say that the deployment was catastrophic. At a time when American small businesses are in desperate need of cash to keep themselves afloat, we have heard stories from hundreds of business owners, ”she said.
Complaints from small business owners who tried to access the program came from some banks saying they had not implemented it. Others said they would only offer it to existing customers.
Ballantyne summed up the problems in one sentence.
“There was a lot of confusing information from different sources that didn’t or didn’t match.”
Immediate grants
She said companies need immediate subsidies to retain and bring back workers.
The panel supported her with their real world examples.
Davis Senseman, Owner, Davis Law Offices – Minneapolis, MN explained some of the problems faced by the firm’s small business clients.
“With the paycheck protection program, promises were made that you could get the money on the same day. It can happen for some people, but it is definitely not the case for small businesses. “
Big problem
Senseman points to another big problem. This is the fact that many small businesses do not have a relationship with the Small Business Administration (SBA) that implements the PPP.
“SBA loans have traditionally been among the most difficult loans to obtain.”
Tiffany Turner – Owner, Adrift Hospitality – Long Beach, WA gave a first hand testimonial.
She says that the Friday following the passage of the Cares Act, she contacted two banks with which she has a good relationship about the PPP.
Decreasing amounts
“None of them even knew what I was talking about,” Turner said. She tried to apply at other banks but found the money was dwindling. Some did not participate at all.
“If we want our Main Street businesses to survive, we have to make this process easier and faster,” she says.
Andrew and Briana Volk – Owners, Portland Hunt and Alpine Club – Portland, added another layer. The company had been open for almost 7 years when they chose to close their doors on March 16. It was only a few days before the state closed all restaurants except take-out.
Hotel industry
“The payroll protection program doesn’t do much for us,” said Andrew, referring to the uncertainty in the hospitality industry. “Eight weeks of pay and rent, most of which goes to payroll?” We don’t even know if we’ll be open in eight weeks.
Natasha Crosby is the Sole Proprietor / Realtor and President of the Richmond LGBTQ Chamber – Richmond, VA. Crosby didn’t like the money to be on a first come, first serve basis. There was another problem for SMEs that did not have the right relationships with approved lenders.
“Only senior lenders have the ability to guarantee their loans internally. Everyone has to send it back to the SBA, ”Crosby says.
Image: Depositphotos.com
