SBA Paycheck Protection Loans Went Fast, But More Is On the Way

21. April 2020 09:43

By: Laurie Wolff, Certified Global Business Professional

Wow, that went fast. Some of you were able to obtain loans through the SBA’s Payroll Protection Program or Economic Injury Disaster Loans, but many were not. Even though the funding levels were larger than anything the SBA has done before, the needs are significantly greater than the funding provided. The SBA has stopped accepting applications unless or until the government authorizes additional funding.

My best guess is that more will be authorized this week. We have already had more people file for unemployment claims than we have created jobs since the end of the Great Recession. Independent contractors and self-employed workers have not yet been able to file for benefits even though those were authorized under the federal stimulus programs. States literally have not had the capacity to process these claims, and as far as I can tell the first of these will start hitting the system next week so expect continued historically high numbers for jobless claims for at least the rest of this month as states play catch up.

Politicians will respond to this with more stimulus, so if you have applications that were pending and not approved, keep working with your bankers because if (when) more funding is authorized, it too will be dispersed quickly. Most state and loan programs were also quickly exhausted but keep in contact with local small business assistance centers and economic development offices in case additional resources become available.

I’ll blog about what the Federal Reserve is doing to stabilize lending and the financial system soon. Some of what they are doing directly benefits large businesses, but if the Fed is able to take the loans guaranteed through the SBA program off the books of banks, that gives banks more ability to lend. Stay in close contact with your lenders. Your bank has a vested interest in your ability to survive this crisis.

I have friends that got the loans and some that didn’t. They applied equally quickly and as far as I can tell were equally worthy. It doesn’t feel fair. I’m glad for those that did get the loans and for their workers. All I can do is encourage those that didn’t to keep at it.

I plan to talk with you about exporting when we meet in Atlanta at IWF, but in the meanwhile I’m happy to answer questions and make referrals to resources, whatever will help you move forward with your business.

Reach Laurie Wolff c/o IWFNetworkNews@iwfatlanta.com   

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