An Inside Look: An OOH Company Applies for Stimulus Help Part 3 (Frustration!)

OAAA is following an OOH company through the small-business loan process, in order to explain it to others.  See the first post here.

In our second post, the OOH company prepares to fill out an application. This installment provides insights from the front line about how to apply. Other stimulus help is available to larger companies.

The this third post, the applicant is frustrated by delays, but remains hopeful.


– Companies with 500 or fewer employees can apply for SBA funds (Small Business Administration) up to 2.5 times payroll

– These SBA loans (“Payroll Protection Program”) convert to grants if certain conditions are met (to retain employees)

Click here for an application; consult your bank or lender

From the field (April 6, 2020):

“Still no link for the application” from our bank, the OOH company leader said after business hours on Monday, April 6. The OOH company’s bank said the application would go through (to the Small Business Administration) within a couple days.

Small businesses can apply for “payroll protection” loans up to 2.5 times average monthly payroll which will be forgiven if certain employee-retention standards are met. In this context, small business means 500 or fewer employees.

Despite frustration, the OOH company principal says “I encourage other small businesses to examine their eligibility. If this would help them keep people on the payroll, get in touch with their lender.”


Is this frustration isolated or typical?

Typical. Banks, which are processing loan applications for the government, have been overwhelmed by requests.

In this case, the OOH company and its bank have a longstanding relationship (including lending). The bank said it didn’t receive final guidance from the government until Friday, April 3.

(The New York Times on Sunday, April 5: Customers of a large national bank were dismayed to find that the lender would not work with them because they had only accounts, and not loans, with the bank. The bank said it was accepting applications only from customers who had both “a pre-existing business lending and business deposit relationship” as of February 15.)


Does the OOH company have the needed info?

Yes, the OOH company is ready to file. The application form is “straight-forward,” the company says.


Are Delays Nerve-Wracking?

Yes. The leader of the OOH company hasn’t slept well and worries about losing a place in line for small-business help.


What If the Money Runs Out?

The OOH company’s bank says if demand for SBA payroll protection loans exceeds the federal stimulus allocation ($349 billion), the feds will probably provide more funds.

“If we run out of money, we’re going to go back to Congress and get more money for small business,” Mr. Mnuchin said on the Fox Business Network on April 3.


Have Other OOH Companies Applied for Small-Business Help?