Coronavirus California

Coronavirus: More than 112K small business loans approved in CA before federal funding ran out

Tuesday, April 21, 2020

More than 112K small business loans approved in CA, second highest in the US

Small businesses should be able to get help from federal funding through the Paycheck Protection Program or (PPP). But, with no money left, Bay Area small businesses are forced to rely on the Economic Injury Disaster Loan to make ends meet.

REDWOOD CITY, Calif. (KGO) -- Small businesses should be able to get help from federal funding through the Paycheck Protection Program or (PPP). But, with no money left, Bay Area small businesses are forced to rely on the Economic Injury Disaster Loan (EIDL) to make ends meet amid the coronavirus pandemic.

"We've never had to shut down the business," said Vicki Marchant, owner of Hoot Judkins Furniture in Redwood City. "This is the first time in 55 years we've had to shut down the business."

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Marchant applied for an EIDL after struggling to apply under the Paycheck Protection Program. She waited 28 days before getting approved.

"We were in such a bad state, we feel absolutely relieved now," said Marchant, who is one of the 2,100 small business owners in California that's been approved for an EIDL.

Unlike, Matt-Feldman Romero, owner of a Daly City-based childcare center.

"We were forced to lay off 75% of our staff," he said.

Feldman-Romero has already been denied for a PPP loan through one bank. He attempted to reapply through another lender but has yet to hear back.

"I'm struggling to pay my employees," he said. "It's been really hard having to wait without any answers."

With the federal lending program now out of funding, Feldman-Romero is hopeful his loan is still being processed.

Joe Field, the owner of a Concord-based comic book store, isn't as lucky.

"There on my screen is the latest email from Wells Fargo," he said, pointing to a note that read he won't be eligible for funding. "There's no money left... we were shut out."

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Field is in the same position as hundreds of thousands of small business owners who are now left to reapply if additional federal funding is approved.

ABC7 spoke with SBA SF Regional Director Julie Clowes.

"Should small business owners who have yet to hear from their bank automatically reapply? Or, what's the next step for them?" ABC7's Stephanie Sierra asked.

"For any borrower who applied for the PPP loan with their lender and hasn't been messaged back... please go contact them. Find out where you are in their internal processing," Clowes said.

"Is there still a chance their loan is being processed?" Sierra asked.

"Yes, the bank could have processed a bunch of them and input them into our system and is now just getting back to contacting those borrowers and letting them know," said Clowes.

The latest additional stimulus package aimed to support small businesses is likely to be an additional $250 billion for the Paycheck Protection Program. Another $120 billion is projected for EIDL and minority-owned businesses. Congressional leaders expect a final vote by the end of this week.

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