(OAAA is following member companies through the small-business loan process — “Payroll Protection Program” — to help explain this stimulus benefit. In this update, five out of home media companies share experiences, good and bad. Banks are processing $349 billion in loans for the Small Business Administration; these loans will be forgiven if worker-retention standards are met.)
The Small Business Administration reported Monday afternoon (April 13) that more than 941,000 applications had been approved for over $226 billion from the Paycheck Protection loan program. Congress allocated $350 billion in Payroll Protection loans, which will be forgiven if worker-retention standards are met.
Some out of home company applications for Payroll Protection funds have been approved. Other companies have been frustrated by delays.
Our big bank referred our company to a local bank. Yes, the big bank found a smaller, local bank to process our application.
The government’s Payroll Protection Program went live Friday, April 3. The out of home company quoted above was ready to apply for help that day. Over the Easter holiday weekend — more than a week later — its big bank sent the out of home company to another, smaller bank.
Other out of one home companies which have submitted Payroll Protection applications — already approved — echo the advice that smaller banks seem better able to help applicants.
Politico (April 13): A federal judge Monday defended a controversial move by Bank of America to restrict the pool of small businesses that can seek rescue loans through the giant lender, giving banks new legal cover as they field hundreds of thousands of applications.
U.S. District Court Judge Stephanie Gallagher denied a request by a group of businesses to force Bank of America to loosen its limitations on the so-called Paycheck Protection Program loans, which Congress created with $350 billion in funding to help avert mass layoffs during the Covid-19 pandemic. The government-backed loans can be forgiven if businesses maintain their payrolls.