ALBANY, N.Y. (NEWS10)- The $349 billion Paycheck Protection Program loans for small businesses ran out of money in less than two weeks. Many small business owners have applied for the loan and not heard back.
Congress has reached a deal on a fourth coronavirus relief package, this one focused on sending help to small businesses, hospitals struggling as well as expanding support for testing. Experts say lawmakers have now agreed to add another $310 billion to the fund. The new deal sets aside $60 billion for small lenders and community banks. The total price tag of the bill is approximately $483 billion. It will authorize the Paycheck Protection Program to spend an additional $310 billion.
Ann-Marie Berar, co-owner of Bare Blends says she applied for the small business loan. Berar says she was told her loans were approved, but at that time the money was gone.
“I feel like I completed everything in a pretty timely manner but it just wasn’t good enough, that was a little upsetting.” said Ann-Marie Berdar co-owner and founder of Bare Blends.
Mike Aviza, the owner of Aviza’s Cleaning Service says the same situation has been happening with his company.
“I was approved by my local commercial bank. I submitted my loan application and it was processed. We were approved but we have not received money yet. However, it looks like it should be coming from what I hear, but I have heard nothing from then since.” said Mike Aviza, owner of Aviza’s Cleaning Service.
In just New York alone, the small business association reported over $81,00 in PPP loans. The PPP loans that have been approved is $20.3 billion.
Jim Lozano, partner of BST Accounting Firm says there was trial and error with this loan process.
“Towards the end of the process, the bank sort of got into a routine. People that were in line began to see their approvals go through. I believe some banks were quicker than others which is why I think the money went very very quickly” said Jim Lozano partner of BST Accounting Firm.
Both Mike and Ann-Marie are hoping they can get their money this time around.
“As a business owner you work tirelessly to get better and without the proper funds you can’t pay the people you need too and help make your business better. said Berdar.