California small business is stymied on coronavirus relief

Restaurants Shoe store. Dog rearing dry Cleaners. An estimated 30 million small businesses serve customers across the US – or, before the coronovirus epidemic forced many to close their doors. Now they are desperate for cash and are struggling with the Balki rescue program.

In an effort to curb the economic impact in the face of mass unemployment, Congress has authorized $ 350 billion in loans for small businesses. That includes Paycheck security program Pardonable loans for small businesses that agree not to keep workers for eight weeks.

But 10 days after the PPP took effect, many businesses reported that they still had not received the money. The Federal Small Business Administration, lending banks and intended recipients are sorting through the chaos with chaos and confusion. Many applications report that they are not yet implemented.

“Small businesses are still waiting, unsure how much they will get or when,” said Holly Wade, director of research and policy analysis at the National Federation of Independent Businesses. Has been raised for the business group Help small business owners Through the crisis.

On Monday, Treasury Secretary Steve Mnuchin said that PPP applicants should have approved loans by the end of the week.

Meanwhile, 50% of the members polled by NFIB stated that their cash does not exceed two months under current circumstances.

“Unfortunately, time is not their friend,” Wade said.

Members report that some money has started tricking in recent times. Some banks are telling customers that the program is already scheduled. If Congress did not allocate more funds, and the loan-approval process did not improve rapidly, “more small businesses would have to close their doors, and more employees,” Wade said.

An additional $ 250 billion Hangs in congress According to Democrats’ demands, it is part of a package that includes aid to hospitals, states and local governments.

Meanwhile how are three small businesses trying to keep their heads above water.

Dog rearing

Leena Swann first raised the Clipper 30 years ago as a teenager, learning her craft from handlers working with show dogs. “It’s that I learned to groom every breed,” she said.

Swan built a mobile grooming business and, by 2008, Auckland had a storefront in Emeryville, named All About the Dog. He attracted a loyal customer.

We opened up before Petco’s own grooming service began. Petco came, Petco closed – and we’re still here, “he said.

Swan employs four workers: a full-time groomer, a part-time groomer and two bathrooms. Before the virus hit, the shop used to have about 20 dogs a day.

The Swans are still paying their employees. “I don’t want to put them on unemployment,” she said. But she is not sure how long she can continue. “The number of dogs we have required to bring money to pay the bills in one day,” she said, including $ 4,500 per month for rent.

Her workers qualify for the direct payment of $ 1,200 promised by the federal government, but they are still waiting.

“This money is not shown in anyone’s account,” Swan said.

Mnuchin said on Monday that the funds were expected to be displayed in bank accounts by Wednesday.

Swan is seeking a $ 47,500 PPP loan, but the process has been painful. The second PPP opened to applications on April 3, with Swan on her computer, trying to call the relevant page in her commercial banker Wells Fargo.

“I made several attempts,” she said. “This bus crashed and crashed. I tried to call them. no answer.”

A person from the Wells Fargo branch finally called him “check in to check” if you needed anything. He said that he needed a PPP loan. “We ran out of money,” she said as the bank representative told her. “Log on later today; It will open again, keep trying. “

Finally, she was able to file an application. Now he is in the “queue”. There is no clue as to what it means to be in a queue, or even in a queue.

Meanwhile, Wells Fargo is sending her an email suggesting that she try other banks in her neighborhood.

When asked about such problems, Wells said of lending limited accountability to PPP applicants. The cap, which was imposed by the Federal Reserve after the bank created millions of fake bank accounts, was temporarily lifted on April 9.

For now, Swan has raised about $ 8,300 from a GoFundMe campaign, with the goal of raising $ 15,000. She knows that she has a customer base that can afford donations.

Still, he said, “It’s a mess. It’s really a mess.”

Pawn shop

Danny Justman manages Ponmart Jewelery & Loan in Norwalk, California, which has been in business since 1978. PavenParts is a type of lender for downs and outs.

“It’s a real requirement,” Justman said. “Many of these people require cash, but do not have access to credit.”

Like Swann, Justman tried to apply for the loan on April 3 – in his case, $ 89,200. Like Swan, he was nowhere with his main banker, Wells Fargo, so he looked elsewhere.

He tried the US bank, where Ponmart also has accounts, but the flat was closed – because, he admits, he runs a pawn shop. “Thank you for considering US Bank,” it said in the rejection message. “Unfortunately you are not eligible for the paycheck protection program.”

Danny Justman’s rejection from American bank

They tried again, with a different industry code: Second Hand Store. This time, his request went through, but he was told by email to be patient, that everyone is in a holding pattern like thousands of businesses applied.

The bank said that when it is possible to fill an application, it will be informed. He is still waiting.

Ponmart’s 13 employees are still being paid, Justman said. He does not want to say how long he can stay outside, but his cash will run short at some point. Some of his regular customers, they know, are desperate.

The fact that banks are overwhelmed does not surprise Justman, but “they are taking a bad currency on it, treating them as if they are regular loans” even though they are guaranteed by the SBA, he said.

Church

Vicky Broach chairs the board of the First Congregational Church of Riverside, which consists of a congregation of approximately 300 and two part-time and two full-time employees, including clergy. He is surprised about how long it took to get a $ 20,000 PPP loan.

The church’s regular banker said it was not participating in the loan program.

“I tried to file through Wells Fargo, which is mine [personal] Bank. I got in the queue, ”he said. “But they keep sending me emails that say are still in the queue, still in the queue.” “

He turned to a local bank, asking for several documents in Wales, such as articles of incorporation. “All banks ask for different records. Everyone wants to do something different, ”he said.

Retired lawyer Broke said that if there was a general application with a common set of necessary paperwork, small businesses could apply to more banks, which would make it easier to find someone who would provide the loan.

“These loans are guaranteed,” she said. “If a goal is to quickly get cash to businesses that need it, it shouldn’t be an issue”.

She has spoken to administrators of churches around the country, who have tried to apply and have not yet heard of anyone receiving PPP loans.

“We can go here a few months,” he said, “but then we’ll be flat broke.”

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