Are micro-small businesses being left out of Payment Protection Program? Here's what ABC7 found

Monday, May 4, 2020
SAN FRANCISCO (KGO) -- More than 320,000 loans have been approved from the second round of funding under the Paycheck Protection Program in California, which is more than any other state in the country. But, how many of those are actually going to micro-small businesses?

"It's been devastating really...my whole team, we're all affected," said Jeff Silverman, who applied for a PPP loan through Bank of America last week. "I really need the money and haven't heard anything."
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I-TEAM Analysis: 22 Bay Area public companies received $69 million in PPP funding intended for small businesses

Silverman, who employs three, is part of the 72 percent of micro-small businesses in the Bay Area that employs 10 people or less.

"There will be a lot of people here that will lose their jobs," he said.

Last week, Bank of America reported processing 184,000 PPP applications, but because of new changes implemented from the SBA only 1,000 loans were approved.



"Where does the backlog stand today?" ABC7's Stephanie Sierra asked SBA district director Julie Clowes.

RELATED: 475K Paycheck Protection Program loans approved nationwide during 2nd round of federal funding

"We have been working with the larger banks, in particular, to do a different process so we wouldn't bog down our system...we've tried pacing techniques...it seems to be working," Clowes said. "We don't have such a big backlog reported earlier last week."



According to data from the SBA's second round of funding, more than 850,000 loans have been approved by smaller lenders. While big banks have approved more than 1 million loans.



"What data are you seeing that shows smaller businesses are getting more attention now?" Sierra asked.

"Our average loan size is 78,000...that says to me that smaller businesses that have small financial needs are getting into the system and getting these loans approved," Clowes said.

RELATED: 94 publicly traded companies got $365M in small-business loans from Paycheck Protection Program, AP investigation finds

The Bay Area Bank of America branches has approved more than 1,400 loans with the second round of PPP funding.

According to an ABC7 analysis, roughly 76 percent of those loans were processed for micro-small businesses in the North Bay. Whereas, 71 percent were processed for micro small businesses in San Francisco, the East Bay, the Peninsula, and Santa Clara County.



"I don't know how much longer we can wait," said Silverman.

If you've applied like Silverman, but are still waiting - the best thing to do is check with your lender.
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According to Clowes, your bank will be able to confirm your place in the internal process or possibly verify your application has been submitted to the SBA.

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