Last Updated on February 11, 2024
Today’s post was supposed to be about pretty outdoor home decor to zhush up your patio, but all that changed when I read that the Payroll Protection Program (PPP Loans) funding designed to help small businesses during the COVID-19 crisis has run out of money. This is not a democrat versus republican post, but rather an open letter to our leaders, banks and CEOs of big companies from a small business owner. I’m hoping you will share this post on your social media pages. Tweet it out. Post it on Facebook. Let’s make some noise because what is happening is wrong, and even if you are not a small business owner yourself, this WILL affect you.
Since the shutdown began in Illinois, I’ve been actively involved in multiple message groups of small business owners like myself, banding together, trying to navigate the waters of what is an EIDL, PPP, rent deferment, and where to find small business loans and grants. I’ve been on the phone with my personal banker asking him tons of questions. I have spent countless hours filling out forms on one website only to be told, “whoops, we changed our mind, you need to apply here instead”. Pulling tax files, expenses, and other Quickbook reports. Talking to my landlord and my accountant — basically running in circles chasing money. As a small business owner, this is what I signed up for when I said I wanted to be my own boss. It’s my responsibility to solve and I was okay with this shit sandwich that had been handed to me…until I read that Ruth’s Chris Steakhouse received $20 million in PPP funding. Wait wut??? How did a publically held company with over 5,000 employees qualify for the small business PPP Loans Coronavirus aid? I am NOT okay with that.
Before digging in on this today, I asked all my small business owner contacts if they themselves or anyone they knew had received PPP funding. Negative Ghost Rider — that’s a rough estimate of over 400 small business owners in the Chicagoland area who gave a resounding answer of, “NO, funding has not been received.”
Ruth’s Chris received PPP funding on April 7, four days after the Small Business Administration (SBA.gov) opened the application window on its $350 billion Payroll Protection Program. I submitted a request to apply for the same loan with my bank at 9:30 AM the same day. I filled out an online form with my name, phone number, and email address. After pressing submit, I was taken to a new screen saying someone from the bank would call me in approximately 10 business days to get the ball rolling.
April 14 I received a call from my bank to begin the full application process and was asked for my monthly expenses – my take-home pay (as a self-employed small business owner and independent contractor), monthly rent the shop, and utility costs.
PPP Loans Update: Many have stated requesting this info was mishandling of my loan. I was asked these questions as a workaround because I do not technically have payroll, and I’m the only person working for HOH. The money made by House Of Hipsters (blog and brick and mortar) is deposited into a business checking account. From there I pay my rent, utilities, and myself (I have a salary), but I’m not a fancy business owner with a payroll system. My taxes are not filed under an EIN but HOH has an EIN. I file under my SSN.
Let’s just say for example that my monthly number was $5,000. To calculate the loan amount, we multiplied the $5,000 monthly cost by 2.5 (that 2.5 number was determined by how many months the government thinks my business will be shut down). Doing the math, my PPP loan should have been $12,500 — to be paid back within 24 months at 1% interest. Taking out this loan seemed like a much smarter plan versus using all my savings to pay for the loss of business. Plus, there was an added benefit that the loan could be forgiven if the funds were used for authorized business purposes. The money HAD to be used to pay rent, the electric bill, water bill, or any interest on a mortgage. I mean, I couldn’t go building a new deck in the backyard or buy a new chair.
Now, this is where things get a bit strange. The helpful banker says to me, “Congratulations, you’ve been tentatively approved for a $40,000 PPP loan.” Wait wut??? Why would you allow me to take out a loan for over 3 times the amount that I should NEED for two and a half months? His answer, well, you don’t have to take the full amount. Ummmm, okay…but isn’t there a limited amount of funding available for this program? What happens when you do this for everyone and the money runs out? Without giving me a specific answer, he explained that my paperwork would be handed over to an underwriter for the remaining portion of the loan application process.
Unfortunately, the procedures for the Coronavirus aid was being written in real-time, so there was nothing concrete. The government was holding the funds and the banks could not disperse the money until they knew they were protected as well. All valid concerns for fraud and creditworthiness. Dude, no problemo! I get it! The fact that I’m this far along in the process and as a creative person, and I’m horrible when it comes to understanding new things about money and finances — gah, I see the light at the end of the tunnel. With a huge smile on my face and a sigh of relief, I hung up and texted my landlord an update on my loan status.
Fast forward to today, April 16, two days after being tentatively approved for a $40,000 Payroll Protection Program loan, I read that the $350 billion in small business funding has run out. Will the Small Business Administration (SBA.gov) disclose which companies received funding? I can’t tell you that, but one thing’s for sure, it’s not me, and it’s not my small business owner friends or their friends. It’s not your favorite neighborhood restaurant. It’s not the local florist. It’s not the gym where you take your daughter to gymnastics. It’s not the salon where you get your hair cut.
According to the Orlando Sentinel, a Pennsylvania investment firm that owns the Ritz-Carlton Coconut Grove in Miami applied for 48 taxpayer-backed loans. FORTY-EIGHT! If they were approved, that would be $48 million from the Payroll Protection Program!
The parent company for Ruth’s Chris Steak House applied for and received $20 million in small business loans — the very same steak house that made $42 million in PROFITS last year and spent $41 million buying back stock and paying dividends to shareholders. If that $20 million loans had been given to save REAL small businesses using my roundabout math of $12,500 ($5,000 x 2.5) — that could have been 1,600 small business owners breathing a sigh of relief knowing they had a safety net.
So how is this possible? Mid-sized and large hotels and restaurants qualify for Payroll Protection Program funding because of a few special rules that were written into the CARES Act (Coronavirus Aid, Relief, and Economic Security Act) program. Industry lobbyists argued that hospitality businesses would be largely devastated by the shutdowns and shelter-in-place orders. BUT these hotels and restaurants are now asking to spend less of the PPP loan money on paying their workers and more on mortgage principles and franchise fees (as I stated above, Paycheck Protection Program rules state that small businesses can use the loan only to pay interest on mortgages, NOT principal). Yup, these companies have twisted the Payroll Protection Program specifically created to help small businesses into a full-on corporate bailout. And I mean really, can you blame them? Do you think under normal circumstances these companies could find multiple $10 million loans with o payments for six months and 1% interest? Hell no. But these companies have also assured investors they have enough money under a line of credit to survive into 2021 even under a severe economic crisis such as this. Every article I’ve read on the small business Covid-19 loans has a lead photo that looks like this.
The door in that photo does not represent who the government funded. I don’t know, nor do I care whose fault this is. What I do know is I’m angry, worried and sad. Worried for my friends who own small retail shops. Worried for the woman who cuts my hair at the local salon. Sad I may never again have dinner at the restaurant down the street with the best sushi — where the hostess greets my family by name. I’m angry with the politicians who told me, “You must shut down your business, but we’ll help you”. I’m angry with the fighting in Washington. I’m sick of the finger-pointing. Stop saying this person is to blame or that person screwed up or it’s not my fault or he waited too long. I don’t give two shits whose fault this is. We’re stuck in this boat together, and once we have the approval to get off of this crappy ride, I hope to see my friends open their shop doors. I want to see small business owners thrive.
What I don’t want is to see my fellow shop owner living in her storefront because she needs to keep her cash flow liquid. I don’t want to see the restaurant owners empty their nest egg earmarked for their kid’s college tuition because if they don’t they’re forced closed. I don’t want the government to dump more funding into a broken system. I don’t want big banks to have the authority to determine who receives loans. I don’t want big banks to give priority to big companies and helping them find loopholes. I do not want to see my friend shut down the dream job he built because a bunch of people that hang out in a big white house can’t play nice in the sandbox together. You’re grown men and women! Stop acting like toddlers! My 7 and 10-year-old children get along better, and they are not running a country.
I want the media to stop acting crazy and hyping every single word in every single conversation because it sells advertising space. You’re messing with our lives. Yes, the coronavirus is deadly. Yes, sheltering in place is saving lives. But mass hysteria created by the media with fighting and finger-pointing is not the answer. Politicians, buckle down and put your pet projects to the side. There’s a bigger picture here. We’re staying at home to slow this virus. We are losing money in our retirement plans. We are suffering and trying to make do. We’re homeschooling our children as best we can. We are doing our part. I’m asking our leaders to do theirs.
Even if you are not a small business owner, you should be angry with this how the SBA PPP loans played out this week. This WILL affect your community and your life. This WILL affect your taxes. Please share this. Let’s make a change for the better and raise awareness that small businesses were wronged. The system is broken and a whole lotta things need to be fixed.
Payroll Protection Program Update
A reader and fellow small biz owner started a petition to ban big companies from receiving any additional funding. Sign it here.
Contact your Representative and tell them this is wrong.
Contact your Senator and tell them this is wrong.
Submit a Freedom Of Information Act for information and records from the SBA. Legally they HAVE to respond in a certain timeframe.
Big companies that received Small Business PPP Loans — Shake Shack, Ruth’s Chris, Potbelly Corp
More Personal Musings By Kyla
My honest review of the application for membership process at the Biltmore Country Club, Barrington, IL. Spoiler alert, I was rejected.
I’ve been helping to organize the Jackson Chance Ping Pong Ball to help NICU babies at Lurie’s Children’s Hospital. See how you can help too!
If you could only pick 5 words to describe yourself, what would they be?
My life 1 year ago today. How it looks one year after lockdown.
Ronee Bergman
Amen sister! I come from a family that was a “Main Street shop owner”, I feel your pain. This is unconscionable and unacceptable…
kyla
Ronee BergmanI wasn’t really expecting to get much if anything myself, but for so very few of us to receive anything…it’s disheartening to say the least.
Kirsten Garrison
kylaThis is so infuriating. I’m a sole proprietor of a dog walking business. I lost over half of my revenue due to this quarantine. I applied for unemployment and EIDL. I’ve not received one red cent. I’ve also not seen a stimulus payment , even though I filed both 2018 and 2019 and have direct deposit. Where is all the supposed help? It’s obviously gone to Trump’s family and friends. I wasn’t aware of the big companies getting these loans until I saw your article. Wow! Just wow!
Carla
Kirsten GarrisonDon’t blame Trump. Remember the Democrats held out until this was added in.
Lorraine C
CarlaCarla, Actually the Democrats tried to hold out to STOP this from happening and to add some controls and oversite to who could getbtgis money. It was the Republicans who fought them at every turn and Trump who fired the inspector charged with oversite.
Politics aside you should get your facts straight on who is screwing you.
Gina Muscari
CarlaI seriously doubt this was added by democrats. Please cite your source.
Richard Dykes
CarlaThe Democrats held out to try to get more money for small business owners and real American people like me and you instead of all the big money corporations that have actually profited from this crisis but these facts seem to have got lost in all the bs along the way so keep supporting a president who could care less about anything other than blaming someone else for his mistakes and making his rich buddies and himself richer
Ridi James
CarlaThe Democrats held out for oversight, while Trump said “I’ll be the oversight. I’ll be the oversight.” Trump would watch out for Trump. You KNOW this. You heard Trump say it.
What is wrong with you people?
Steve P.
CarlaAbsolutely blame Trump. He signed it. He brags that he is in charge.
What’s that phrase? “With great power comes great responsibility”
Mark Rath
CarlaAgreed. Its been a swamp long before Trump got there.
Shirley Slayton
CarlaSounds like a prearranged setup. Why else would those big companies even try to get small business loans?
Dania Daniels
Kirsten GarrisonI was very disappointed as well. My small business in New Jersey was affected by this as well. I am completely upset to know that the funds was designed for smaller business but her larger businesses benefited from it. This hurts. I am praying for all
the small business owners that have responded and are suffering in this pandemic.
Randall Brown
Dania DanielsNo the Democrats held out to put pork into the Care act which had nothing to do with the Pandemic.
Logan
Dania DanielsThe dems are who gave Kennedy Center 25 million so they could turn around and donate 5 million of everyone’s tax dollars back to the DNC.
Our government has become corrupt more than ever and only work to line their pockets and big business. We as citizens and small business owners need to start reminding are reps they work for us, not themselves, lobbyists or corporations.
Americans need to leave the party lines and force our voice to be heard and responded to. Our reps dont have to agree to what they want as long as we the people want it.
Gail
Dania DanielsThe dems were insistent on getting their pork or they would refuse to approve the deal.
Vivian Mahoney
Dania DanielsHOH…,
As I was reading your story I could feel your every word because of the reality of it all. I don’t think I’ve heard anything expressed anywhere in all of my daily searching, reading and listening to many different news stations than you stated it right here.
I will share this as it angers me and my friends as well.
Never ever in my entire life have I ever known that big corporations were called small businesses. So many things have eaten away and destroyed mom and pop stores, restaurants and so forth over the years but I am afraid this will finish it off if there’s no changes made.
Thank you so very much for sharing your story and I send prayers and thoughts to all small businesses across this country that something is done for them and for the hard working men and women that don’t even have a business to start with.
Jamie Jacob
Kirsten GarrisonI’m in the same boat but as an Esthetician I am totally shut down and the millionaires will probably be getting the self employed unemployment benefits and we won’t.
margaret
Kirsten Garrisonlook into the link between Ruth’s Chris -> Amway -> DeVos -> Trump.
K
Kirsten GarrisonI mean what did you expect after voting a reality tv republican in office
Alexander Q
Kirsten GarrisonI’m in the same boat as you! I own a small doggy daycare company and I’ve lost all my clients. Either they don’t have a job or don’t need my services since they are home.
I applied for EIDL and PPP as soon as I could and haven’t gotten anything. Only to find these big companies got a giant slice of the pie days later.
I still can’t apply for Unemployment in my state till Monday and haven’t worked since March 24th. Oh, still haven’t gotten my stimulus check either, and the IRS website can’t tell me why.
Just screw us I guess
Eileen Cunningham
Kirsten GarrisonTry to keep the spirit of the article in mind and not point fingers at political figures. Trump is the one who is leading the effort to help. Pelosi and friends are the ones who pushed pork projects through this PPP loan. EG: Kennedy Center Center for Performing arts received $25 million, only to fire all their employees once the money was received.
kyla
Eileen CunninghamThank you. No finger-pointing. Just make some noise for a change!
Sharon
kylaRemember to vote this November and fire the lack-of-action politicians….
Larry Sable
kylaThe sba pulled my credit this morning April 18th well after the money was gone! With?
kyla
Larry SableThat could be your EIDL…the loan from the SBA. Rumor has it those are starting to come through.
K
Ronee BergmanWhy make this a LONG rant. Would have been better with facts SHORTER. Now most orople won’t read it.
Ann
KThere’s time to read now…
Kristen
KYour inability to pay attention to more than a paragraph isn’t the author’s fault. Your assumption that everyone’s an idiot with no attention span is insulting.
KT
KI read it completely speak for yourself
Jamie Cerri
KReally, K, that’s your takeaway from this?
Cb
Jamie CerriI cannot believe the rudeness of all the comments! Whew, I’m a small business owner and it saddens me that you are all writing such crass things against others. Let’s be respectful of each other. Be kind during this stressful time!!! I also did not get the PPP loan or stimulus check or anything yet, but that’s no cause to play the blame game and be nasty to others…
Andi
KBecause facts & examples are needed to make her point! If the sheeple can’t take the time to read it, shame on them! They are what is wrong with this country!
Ellen Doherty
KIt’s the banks, agreed.
Tim Sullivan
KYou are correct Joe. It is not the “Administration” that funded Florida’s based Ruth’s Chris Steakhouse and Chicago’s based Potbelly Sandwich Shop, it was the local lawmakers and the banks! In this case, Chase. The intent of help small businesses is admirable, the intent to abuse the system is selfish and ludicrous.
Eileen Cunningham
KThanks to the author for getting the word out!!
Enid Alexander
Ronee BergmanMeanwhile we can all breathe easier that the Kennedy Center can keep running with their $25MYN thanks to Speaker Pelosi’s tireless efforts. And since their grant wasn’t a PPP loan, they laid off their employees.
Kristen
Enid AlexanderThe Kennedy Center employs 3,000 people and is projected to lose $20m due to closures. Their operating costs are enormous and their performances are bar none among the best in the world. They furloughed employees in order to bring them back following the threat of pandemic. Meantime, they’ve been live-streaming archival content free every single night for the last month. They are a crucial institution to the survival of arts in America.
Pelosi, like many others in Congress, is a former board member. Supporting arts and culture is kind of a thing that politicians do. Your baseless allusions to a conspiracy are dead in the water.
Roger Heemsbergen
KristenArts and culture do not need to be funded by us taxpayers during this time, they have less than zero need to be included in the funding of small business and taxpayers that need to survive. All those out of work overpaid artists that work there can get the same things as the rest of the country. The only reason they got funded is because of Pelosi’s family connection to the center. That is absolute corruption and if you can’t see that you’re blind.
M Stu
Roger HeemsbergenSBA employee here. The breakdown of loans by industry can be found online. Be aware that for the first time, small business owners are competing for PPP and Disaster funds with religious institutions and religious schools- entities that pay no taxes. This initiative to fund religion with taxpayer dollars was 100% White House driven. Think about that when you end up last in line for an SBA loan. Not a partisan comment. Simply a fact.
Peter
Roger HeemsbergenCheck the 170 BILLION set aside (by Republicans) for wealthy developers and this pales in comparison. Oh, bye the way, it was RETORACTIVE, so it clearly has nothing to do with the current crisis.
https://www.nytimes.com/2020/03/26/business/coronavirus-real-estate-investors-stimulus.html
Liz
KristenI serve on the board of a non-profit chapter. Our governance requires us to have 6 months in operational expenses to maintain charter compliance. If a small non-profit can do this, a large one should be able to as well. It was a bogus grant pork barreled into the SBA initiative.
Jesse
Kristen“The Kennedy Center employess 3,000 people…” stop and re-read that. This program was meant for employers of 500 or less. That’s all you have to know.
kyla
JesseThis. Amen.
Michael J Purnell
Enid Alexander“The center reported $22 million of the total CARES Act aid will be spent on employee compensation, employee benefits and artist contracts and fees. ”
Those folks needed the help. Cool the outrage.
https://www.reuters.com/article/uk-factcheck-coronavirus-kennedy-dnc/false-claim-after-receiving-25-million-in-aid-the-kennedy-center-donated-5-million-to-the-dnc-and-fired-employees-idUSKCN21X25Z
jeanie
Enid Alexanderexactly and the daca people.
Julie Z
Enid AlexanderJust another example of its all about who you know and not us the small business owners!!
Alessandra Patane
Ronee BergmanSame here… this is disgraceful. My husband can’t even get a reply from anyone… and we were one of the first to apply. So much for the American dream
Dr. Karl R.O.S. Johnson, DC
Ronee BergmanI literally became nauseous with the news the PPP program ran out of funds. I’ve been operating my healthcare practice for 36 years and now, I am not so sure of surviving this fiasco. Thank you for your well-written heart felt article. It’s soot on!
Monica Whitcomb
Ronee BergmanWell said. The government of full of politicians who really don’t care. And government is TOO big to hear about our struggles
María Patricia Duque
Ronee BergmanI thought I was the only one getting this run around!
Disgusting!!!
Sarah Buino
Ronee BergmanSame here. Chicago small business – got NADA. I do have a couple of business owning friends who somehow got funding. I’m mad as hell about this too!
Talent Trek Agency
Ronee BergmanYour story is exactly our story. Same dates, same paperwork, same results. We have done everything that was ask of us three times. Filling out so much paperwork, new form but same attachments. Still nothing and we are with a small community bank in TN. We had heard about the Kennedy Center and today about the Ruth’s Chris Steakhouse monies and are so angry about this whole fiasco. We are in the entertainment business, talent agency with 37 years in business, our monies come from the projects we book actors and models on, only a percentage. We have 2 small offices in TN. We only had 2 full time employees a part time person and the 2 of us (owners). Of course when this happened all advertising and productions stopped, so did our work..zero work as you can afford to have people of doing ads when they are told to stay home. We are one of the “small” businesses struggling to stay alive after 37 years. This is so unfair and ridiculous that a franchise company like Ruth’s Chris Steakhouse and a place like the Kennedy Center who should be closed due to no large gatherings should get the PPP loans instead of places like all us are struggling or having to close. SO ANGRY AND DISAPPOINTED!!!
Lisa
Ronee BergmanI am in the same boat as you I am in a small business with only 7 employees self employed single mom with a tiny little wellness center. I was asking for $15000 I had to jump through hoops they gave me $1000. So I’d like to know how this helps small business is also. Seems to me all the monies go into the big companies just like it usually does and all a small businesses that we work so hard to open and maintain are gonna be shut permanently and it makes me incredibly sad
Deborah Ferraro
Ronee BergmanI agree. We are in New Orleans. Own small neighborhood bar and grill. No money or approval on either loan. Very sad . I don’t care about republican or Democrat, just help everyone. Hope president sees this.
Thanks for pointing this out. I had no idea who got the monies.
Mark Rath
Ronee BergmanYou can bet your bottom dollar that someone on their board of directors walked the paperwork through for them
Thats how it works in DC.
Brad
Ronee BergmanShake shack just gave back $10 million!!! It might be time to petition these large companies to “adopt” 10-20 small businesses each and directly help them survive. Forget waiting for the government. Let’s encourage big businesses! Might be more effective.
April Davis
Ronee BergmanThe PPP program does not check if companies receiving money really are negatively impacted by COVID. There are tons of businesses that received millions, but their businesses are not down at all. This needs to be highlighted as well.
Everywoman
Ronee BergmanThe way this thing has gone is BS. But I do care who did what?
. Who pressed to allow big business to take giant loans and then not even follow the rules. Hell yes who wouldn’t take all that money and not use for its purpose when the consequences are an extremely favorable interest rate?
And then $1200 for people with incomes under $75k to last for four months.
Watching the rest of the world, it is clear that we have terrible governance, the worst president, the most outrageous Congress both of which believe it’s their job to feed their corporate overlords. Trump’s new motto should be: Ordinary Americans Last. That’s the reality. When this whole mess is over we will be told — no money for universal health case. We are so stupid and the politicians know it.
Julia@Cuckoo4Design
I so agree!
kyla
Julia@Cuckoo4DesignI might not be able to change it, but I’m going to make some noise about this. It’s sooooooo not right!
Travis
kylaLike most government relief and assistance programs, I believe they are created with good intentions… but once life long politicians, their lobbyists, financial institutions and major contributors see (Billions) of new taxpayer dollars becoming available, the “machine” kicks into overdrive and the “gaming” begins. If you are mad at this, just understand it’s been “gamed” for years, and is getting worse. Especially if you are a little guy just trying to build a business and live the American dream. It’s a vicious legal “pay to play” cycle at all levels of government. The smaller you are, the further away you are from “true representation”. Openthebooks.com is dedicated to transparency in government, and has compiled the most comprehensive data base on US government expenditures (since 2000). This data base allows tax payers to “follow the money”. It’s no surprise why some of these politicians have been in office for +20 years. This YouTube video provides a shocking overview regarding the depth of this legal “pay to play” malfeasance scheme killing America, and is most certainly at the root of all these issues with CARES. Once you understand, then you can act. Finance campaign reform and term limits at all levels of government is just the starting point. https://youtu.be/SQDEDR0JXdE
Ron
Julia@Cuckoo4DesignI’m a small business owner in Northern Kentucky. I spent countless hours on the phone with the SBA with no answers and no funding. Ty for this article. I shared it. It’s an absolute shame what happened but I’m not surprised. Me and my family will probably lose everything. We can’t even get the so called unemployment for self employed. We were forced to shut down and now lose it all. This is just crazy! I’m sorry but this is not making America great again!
Erin
Same here… private, one person Physical therapy office. Applied 4/3… was sent an email yesterday saying I needed to confirm info BEFORE they passed my loan application to SBA… I dotted i’s and crossed t’s and did everything asked of me… and now I’m left holding my ankles
Shannon peppeard
Great article Kyla! What a huge eye opening article. Thanks for sharing with us all! Will repost!
Christy Freeman
Spot on! I’m one of you! I have many small business friends in Springfield. You totally nailed it.
Nj
Christy FreemanWe have 4 employees.
We are now done.
Business in the family since 1965
Teri Calloway
It makes me sick to my stomach. I am a small business owner that this should have been designed to help. New Jersey is just as bad at the state level, we are getting nothing!
I want to make noise. How do we RISE UP and fight this injustice!
Melissa George
YES! This has been such a mess! I had everything gathered to apply on Tuesday morning and my bank had already shut down applications even though others were still accepting them. Other banks I contacted wouldn’t take mine because I didn’t have an existing account with them. By the time I finally got a reply back from ONE that would take apps from non-customers last night, the funding was gone. There’s talk of another $250B being approved, and I hope that happens and they limit the loan size. The examples you found are outrageous!
Mitch
Melissa GeorgeWe need to band together! Choose a day to all walk on our legislators as the small businesses of america. DEMAND the funds. we all know if they see us in the millions they will change their tune and we can go with the power of information to hold them accountable. NOT ONE MORE CLOSURE should be our chant. lets all rise together and take these people to task. choose a day and lets rise
Ardith
Thank you for sharing this. I am so disheartened by the entire process and system, what a crock.
Brian Richardson
Listen, these politicians stopped representing us a LONG time ago. I saw intimately how a lot of good people lost everything in the great recession of 2008, while the big asshole bankers literally got bonuses for destroying entire countries economies like Iceland. At least in Iceland the people had the good sense to demand the arrest and trial of ALL of their bankers. Your local Italian restaurant was forced out of business, while Goldman Sachs bought the entire block with printed money from the Federal Reserve.
Fast forward to today, and mark my words, this WILL end up being the same exact situation. We will get the crumbs, if were lucky, while the big business interests that can donate and in many cases write these laws will not only be made whole, but will thrive. Anyone that doubts this need just look at the stock market. Why do you think investors are running the market up? Because those businesses will be just fine. Did you know that the Federal Reserve is buying the debt of many large businesses? they have virtually guaranteed the solvency of large business with connections to government.
We as American citizens MUST demand better representation. The current brand X and brand Y candidates we are provided as options on the ballot are a joke! Both sides of the isle are just two sides of the same coin.
Kenneth
Brian RichardsonIf anyone in Congress, both sides ran their businesses like they do the government, they wouldn’t last 2 weeks and would be in jail for life.
Jennifer Smiga
You basically wrote my story. Let’s share this shit out of this letter. I was too angry to write mine.
Annie
Jennifer SmigaSame here! It’s the same situation in KC metro. I’ve been screaming about it, but no one seems to listen. Meanwhile, the public is being led to believe that we’re getting assistance, so we’ll be fine.
Lisa
AnnieI’m a small business owner in Atlanta Georgia. Thank you so much for your article. I have shared with everyone I know. Like everyone else, I have applied for everything that was offered as fast as it became available and have received nothing. Before hearing about Ruth Chris, I had been trying to give the benefit of the doubt, but now know it’s business as usual for the government. I have been in business for 21 years and could see that all go down the drain in 2 months. I don’t wNt more than I truly need to come out on the other end of this. How do we truly find out who did get the money and how it happened. We are all doing our part, paid taxes for years and just need a little help. It’s crazy
Shayna
My company Steel Petal press / 6 employees / was approved for 40k and the money was deposited yesterday. I applied April 3rd.
Annie
ShaynaJust heard we got approved as well. 20 employees and approx 118,000 granted. The trick is going to a small
Community bank I think. It was a tortuous process to be sure. However it clearly has limits according to the form.
Nikki
ShaynaWhich bank did you use?
Jennifer Smiga
You basically wrote my story. Let’s share the crap out of this letter. Thank you!!
Chris
Jennifer SmigaAmen and yes I have shared with two senators…we were totally shafted. We are STILL waiting to be approved…13 DAYS LATER!!! No one can give us any answers…no one cares…and now the $ is gone.
Bob
WOW! Sounds like our experience. Put in the application, paperwork and even got call from the bank for extra documents Filed those within hours. Last contact. Called, voicemail no response.
Steven Schrenk
Your blog felt like I was reading my own experience to a T. It’s been difficult to formulate the words to express to others, who are not having to go through with this, what it’s like. But you sure nailed it! It’s disheartening, obscene, and blatantly obvious what’s going down. I’ve applied for EIDL, PPP, local NJ economic development loans, all the same thing: nada, nothing, “due to unprecedented demand”, “your link to apply will come soon”, “you’re still in the queue”, “are you currently a customer?” Then finally received permission from WF to apply yesterday, only to read the headlines that there’s nothing left. Whaaaa? Complete mismanagement, and where’s the reporting on those recipients awarded the funding? We should have full transparency to know the size of the businesses, the number of employees, the revenue, all of it so there can be a full audit and paper trail to be held accountable. Will we get that at least? The capitalist bankers and politicians have failed us again, duped us into taking the bait, wasting our time, only to realize the futility as they laugh and get those fat Christmas bonuses and gas up their planes. I’m sorry you’ve had to go through it too, and feel for your friends and fellow business owners as well. You’ve initiated a great movement here with what you’ve written. Let’s hold their feet to the fire. TY
Elizabeth Soria
Steven SchrenkI agree with you 100% . Where’s our Lians. I’m sharing your link with my message below all over all my SM coinection. I’m here to help.
Attn: important read this because the majority of small biz including myself after applying for EUDL have not got their Loans instead SBA including banks with PPP Pick n Choose who would get it. This Wrong!!!.. Let’s All Voice opinion n make this go Viral. Enought LIES…Stop helping the Fitch.
Erica
Great post
Adam
I applied through Wells Fargo on Tuesday, the day they started taking apps. The next day they announced there was no money left. My brother applied for his biz through Chase first thing morning of, and he never even heard from them despite repeated calls he made to his banker. He received nothing.
That money was specifically intended for small businesses and if it went to franchises and large businesses as claimed here that is nothing short of highway robbery and I hope there is a class action suit against the US government.
That said, there is no public listing of businesses which received PPP funds that I am aware of. I assume that would require a FOIA request and I doubt those are open right now. There are 82 million small businesses in the US. My employer is absolutely a small business and he qualified for over 400 grand. The money could easily have all gone through to small businesses – I would like to know where this guy is getting his info from. Because my understanding was that it was specifically written to disallow franchises and small businesses owned by or in part with large businesses. And the application process I went through contained questions pertaining to that.
Also, 75% of a PPP loan has to be used to cover payroll and the other 25% covers utilities and other costs in order to be forgivable. All funds have to be used within 8 weeks as well. The reason they did that was because they wanted small businesses to keep paying people even if they weren’t working.
Large businesses got their own bailouts and EIDL loans – which are still available – go up to 5 or 10 million at 2.5%, negotiable based on ability to repay. PPP loans maxed out at 2 million.
I’d like to see more info.
Christina
AdamI run a small nonprofit (6 employees) – A lot of this mess isn’t the SBA, it is the mainstream banks. They were not prepared to process these applications and get the $$ into their community. We used a small nonprofit bank also known as a CDFI. Applied day one and our loan was in our bank account yesterday. If this is funded for round 2, I highly recommend you search for a CDFI in your community and use them. Don’t wait for a mainstream bank to get their act together and don’t settle for “we will call you back.” Also note, that if you have less than 500 employees and use your PPP for payroll costs, you will be eligible to have this loan forgiven – essentially becoming a grant – after June 30. I am thankful we went through a CDFI. If we hadn’t we would still be waiting for a call back.
Mary Buhman
ChristinaWhat bank is considered a CDFI? Thank you
Brian Cain
AdamThank you for this response. I applied for the loan within 30 minutes of the page going live with Chase. I received an email saying my “inquiry was received” and I would either hear from Chase via phone call or email to finish the application process.
I still haven’t received either.
Yesterday, I called Chase only to be told there was no one to speak to regarding the status of my application.
Karina Velez
I own Chicago PinUp Photography and we are closed until shelter in place is lifted. If there is no help fo Russia then let us go back to work with restrictions.
Dee Dee
It’s not just that . I’m a sole proprietorship . The state of Maryland has no application process at all for the individual businesses and they are not answering questions, phones,
this includes their unemployment phone systems, if you do get to someone they refer you back to a website that won’t let you apply for unemployment. Yet 15,500 people applied online over the past 3 weeks yet only 196 by phone … this tells me they aren’t answering the phones and they are not telling people . I spent 12 hours a day for about a week . I’m on week 3 now . I’ve written all my politicians and no one answers my question . How are self employed suppose to apply, since you have no online or paper application ??
The news told me they have a problem with the system and it can’t be fixed and they aren’t telling us … really, really .
It’s time to find a TV station that will cover this stuff !!!!
Cindy
Dee DeeI totally understand and agree. I have a salon in PA and I have done everything that is was told to do and have received nothing . Unemployment for self employed is not available yet . I have 6 employees and have been closed since 3/16. So tough for all now . It’s sad that everything on the news sounds like the government is handing out money to small businesses. Well they needed to clarify small . Sounds like we all sure aren’t. Good luck to all of you and stay healthy.
Kimi
This is a huge mess right now and I’m livid big corporations got the PPP!!’
Nora Swanson
Shame on the SBA. I have lost all respect for them as far as handling money goes.
Bebe
I would have never known this if I hadn’t read your blog. This is terrible and this information should be on every front page and TV news in our nation. This is unfair and not only that, it STINKS of corruption.
Carrie kirby
Unbeleivable is all that comes to mind.
Beth Sackett
My story is very much the same. So very sad and just infuriating. Best of luck to all of us that we can endure till the next round of funding. God bless you and yours!
Headrick
The exact same thing happened to me.
cheryl kees clendenon
Hi Kyla- Wish you had been in my group as talking about this PPP loan since March 24th!
The facts in your post make me think your banker did not know what he was doing – The PPP loan is not nor ever was ( yes I read the entire bill) 2.5x your expenses- but simply your payroll. This could include your pay too. And the 2.5 is not for 2.5 months -the period is 8 weeks of covered expenses only- 75 percent of which has to be for payroll and 25 percent can be for rent or utilities and mortgage interest for your building. The primary purpose of this loan was to keep employees employed including yourself.
So somewhere along the line he thought you wanted EIDL perhaps although this loan goes through SBA so someone effed up badly. The 2.5 for PPP is multiplied against your monthly average payroll costs. Nothing else.
The money did run out today however for anyone who is reading this and they wonder if they got it- the bank may still have docs to prepare- if they got a number from SBA for you then your money is locked in regardless of the news today. But clearly your banker is clueless.
I have started a petition on behalf of my group – Small Business Think Big- to get the attention of congress for the next relief bill. Please consider sharing it to get more attention. And I am not a crazy- 😉 You can google me for several dozen pages and have been in business for 20 years with a design firm of 6, business consulting and a retail shop as well.
I am sorry you got bad intel and this depresses me more than the money going to big companies- because small businesses never had a chance with the banks not knowing shit about shit. I was lucky in that I was on it early and do have a good bank and got funded.
If i were you I would take your moneh and run from yours!
https://www.change.org/p/u-s-senate-the-next-addition-to-the-cares-act-must-have-money-set-aside-for-true-small-businesses/exp/cl_/cl_sharecopy_21595649_en-US/v1/343428808?utm_content=cl_sharecopy_21595649_en-US%3Av1&recruiter=343428808&recruited_by_id=1058aea0-2a91-11e5-bfbe-ffe9d09e0d07&utm_source=share_petition&utm_medium=copylink&utm_campaign=psf_combo_share_abi&utm_term=tap_basic_share
George Jackson
cheryl kees clendenonI don’t see in your response anything about the large companies receiving funding.
Carrie
cheryl kees clendenonI am trying so hard not to lose it, but it’s blow after blow for the small business owner. I have no words. I am fuming right now. JB and Trump and all the non-small businesses that applied can shove their PPP up their asses. I seriously hope that this all comes to light and that there is something done. And agreed… stop pointing fingers and fighting. Own up to running a country – that goes at EVERY level of the government and BOTH sides. If we all behaved and performed in our jobs like they do – we’d all be canned. Thank you for writing this blog.
Linda Jarvis
cheryl kees clendenonI own a boarding kennel with 14 employees I have been paying for 3 weeks even though they are not working. I applied day 1 when my banks portal opened. I was approved, the loan transferred to the SBA, but the money ran out before it was paid to my business. Also so upset that money to save small business with under 500 employees was paid to big businesses who make big profits.
Kenny Masters
Cheryl Kees Clendenon nailed it! Its the banks. My small business PPP was funded and my 40 employees are back to work. My friends small business isn’t yet funded and has banker has been fumbling around in the dark while my banker id everything right.
Liza Prado
I own three physical therapy practices and a sports performance gym. I submitted my application, sent all my docs as requested and to date, no response from SBA. 17 years of owning my own practice, 24 years in the industry and within days, went from a thriving business to operating at 15%. What their process is or was, I don’t know, all I do know is that I didn’t get it. I still have faith and I’ll keep praying for all our small businesses. That’s all I have left is my faith in God. God bless us all.
Chris Serbeck
Liza PradoIf any one read the bill a small business was defined as under 500 employees and 75% of the money has to go to payroll. The bill is not about the business it’s about keeping your employees paid so they will be there when the shut down ends. If you used the work sheet you will see they that they factor the other cost in such has health insurance, etc that is why the loan amounts are greater than just multiply your monthly payroll times 2.5. You are suppose to divide your last 12 months payroll by 12. Consider 2 month have extra pay periods and adding the other cost will also explain why the article was wrong on what he thought he could borrow. I have a small business with 22 employees. I applied on day one and worked with my banker and was funded today. I would agree anyone who had problems should blame the bank. The only problem I see with program is it took to long to start. Anybody who was laid off may not want to come back. With the extra $600.00 a week some employees are making the same or more. I think the government should have just told all employers to keep all employees on submit your payroll and instead of taken the tax 5 days later, The should have funded us the cost of are payroll and eliminate the $600.00 unemployment stiffen. I have friends who business are open and the employees are requesting to be laid off because of the extra $600.00.
John
Much has to do with the lender you work with. I couldn’t find a bank that would even talk to you if you didn’t have a preexisiting business relationship with them. All major banks are overwhelmed with applications as well.
Earlier this week I saw a CNBC report that some non-traditional lenders had been approved by the SBA for the PPP program (PayPal and I believe Square and Intuit).
I submitted an application for a sole proprietor business to PayPal at about 5pm Wednesday online. It was fully approved through the SBA by 930am Thursday. Fully disbursed to my bank account by 4pm Thursday. So I went from submitting the application to cash disbursed to me in under 24 hours without having to speak to a human.
I suggest looking into the non-traditional lenders if additional money is added to the program.
Sarah Davenshire
How do you know Ruth Chris received funding? You should have called your banker and been more involved. The money was issued to small businesses – I know, because I received some money. But, I personally worked with the banker to get it done. And the formula had to be followed for how much was loaned.
jane
Sarah DavenshireWall street journal seems to be a pretty reputable source. https://www.wsj.com/articles/ruths-chris-steak-house-gets-20-million-from-coronavirus-aid-program-11586895864
Michelle
I have to disagree with you. As another small business owner we filed and were approved. I also know a handful of others that have been approved.
Carol
MichelleThe operative word here is ‘handful.’
Small business in NOT 500 employees or less. It is the mom and pop shops, the sole proprietors, etc. In real-life, a small business is one where the owner is out there “doing” every day, accompanied by 1-20 workers. They are the owners of small restaurants who show up before the restaurant opens, work a 12-14-hour day, and then clean up and go home. They are the owners of a small construction company working on the job driving nails and directing the crew. They are the owner of a small medical practice that works incredible daily hours accompanied by the office and medical staff.
I have been a CPA for 20+ years, and the above was taken from a letter written to Congress by Bob Jennings, owner of a national tax seminar company, and he has been dealing with small businesses for over 40 years.
When is government going to get the message? Its small business that runs this country – guess they’ll find out when we are all gone because they gave the money to businesses with 499 employees!
Sandy
MichelleYes, we were approved and the funds were received in one week after applying. We weren’t greedy in what we were asking for. Our local community bank was on top of everything and so helpful. We have 11 employees in the garden center and landscaping field and this will help us keep our employees on while NY keeps restricting, even working outdoors. We are grateful.
Melissa Svoboda
I am in the same boat as you! My husband has a small construction company. Y personal banker told me my local, small bank, which I’ve been a customer at for YEARS, was opening their portal on April 2 around 7pm. At 7:02, I filed my paperwork. On April 9, received a call from than banker, asking for all that same info, and some other info that I knew I needed to submit but wasn’t given the opportunity in the portal. I sent it within minutes. I figured we were golden. Radio silence since April 9.
I then heard pay pal was offering loans, so I applied April 15. Same day singed all the paperwork for approval, and received email yesterday saying the funding ran out. We’re all frustrated. It seems so corrupt. Being deflated and exhausted .
Lynn Wampler
Same story for my husband’s company! Submitted paperwork Sunday night before things could even be entered that Monday morning & was told he wasn’t even in the top 1/2! WHAT??
Jessica
You put into words what we are experiencing. Thank you.
I’m heartbroken seeing all my small business friends being denied. To be honest – there were so many people having trouble I didn’t even finish the loan process. I just knew it was hopeless.
Jamie Hering
Applied on Chase’s website (where I have my business accounts) on 4/7. They sent me an email on 4/9 telling me I could apply (ummm… thanks? Already did). And then crickets. Their website says they’ll let business owners know this morning if they got funding. I’m not holding my breath.
Jezebel
Sole practitioner in my massage/yoga center.
Every word you wrote rings true.
If it wasn’t for my amazing clients still paying for their sessions, buying gift certificates and sending “tips for future session”, I’d have lost everything.
I pledge that I will never buy from big corporations again.
Tricia K
Same Exact Boat! We applied April 8, told the bank was processing in order recieved. On the 15th was told we would be approved, and yesterday was told funding had run out! On the 15th they said it was just a matter of processing. Heartbreaking!
Daniel
Funds are actively being dispersed. The 350B is amount already reserved. Your 40k May be part of that.
They simply are not taking more applications.
If you don’t get paid, it’s simply your banks fault for taking their time or not knowing what to do.
Christina
I run a small nonprofit – A lot of this mess isn’t just the SBA, it is the mainstream banks. They were not prepared to process these applications. We used a small nonprofit bank also known as a CDFI. Applied day one and our loan was in our bank account yesterday. If this is funded for round 2, I highly recommend you search for a CDFI in your community and use them. Don’t wait for a mainstream bank to get their act together. I am thankful we went through a CDFI.
Raime
I work for a non profit worker owned COOP, 10 employee max! The bank just got the info on the 15th & funds ran out on the 16th. I can’t get unemployment because I can’t get thru on the phones, no stimulus yet, no tax refund yet, my only hope was the PPP. I have no hope anymore.
Tom Enyeart
I am a small business owner in Atkinson, IL I studied and filled out 3 different applications for the PPP as the rules were evolving . I have 17 Employees and were are trying to stay open. We did the first app on 04/01 the second on 04/02 and then submitted the 3 and final app on 04/03 through our local lender, I had to help them understand the process and other small business owners were calling me to. I told people that you had to dumb down to understand the program, many people were making it real hard, But like I said its government and they are stupid so you have to stoop to that level to get it. Anyway my app was accepted and I got the money 04/08. $ 149,000.00 in a loan that will be forgivin at the end of the period. What many do not understand is the once you get the money you can use the money for anything business related, hence the reason they say you can use it for rent or utilities. at the end of the period you will have to provide payroll records and if that amount does not get you to the 149000 in my case then you use rent, utilities and other expenses to get to the number. Keep in mind the 350 billion is just the first phase and there will be many others, so get your app in and be ready. Make your banker submit the form even if the program is full at this time, If you do you will be first on the next round. Thanks Tom Shabbona Creek RV Inc.
Troy
I know of small businesses that were approved and received funding. From what I can tell, the difference was whether they went with a small bank versus a large bank. Small community banks were much better at processing these loans. They simply used the paper forms provided by the government. Larger banks with many more customers over engineered the process. They built online forms, processes, etc. The goal was to help more businesses, but in the end because they over engineered it many businesses were not even given the opportunity to apply. Also, I believe the larger banks worked with their larger clients first simply because it meant more fees for them. Would they rather get 1% of 10 million or 1% of $50k.
Jonathan
TroyI agree that the small bank in this case is the way to go. I work with a local bank for my business as well as a major bank. When I was think on applying for this program I had no hesitation on who I would go to because I knew the person I would be dealing with with the local bank as I have had many in person conversations with him over the last few years. He was able to get the ball rolling for us quickly and we just received our funding on Friday. I hear all the horror stories about the big banks and I’m thankful I had another option as I feel I would have been just a number to the big banks and not a name with a business to look after that they are invested in. I’m sorry to those who haven’t gotten approved and I hope more relief comes.
Ellie Kimelman
I own an American Crafts Gallery and have been in business for 25 years. Our mission is to support American artists, they are suffering along with us. I have applied for both loans and have heard nothing. It is unconscionable that these loans are going to large companies who support exported goods. This White House has no clue about “really” small business, there only interest is making money for themselves and their constituents.
John R
This warrants investigation- and thank you for passing!!
CAROLYN RENEE CZAR-DELIMA
1 PERSON SMALL SALON ON MAUI,HAWAII. CANT GET THRU TO ANYONE, NOW HELP HERE WHAT SO EVER. IM MORE AFRAID OF LOSING MY HOME FOR NOT BEING ABLE TO PAY
PEGGY JEAN BURKE
This is virtually our story. We own a small neighborhood restaurant in a suburb outside of Atlanta. I started trying to apply as soon as it was opened. I applied for the Small Business Disaster Assistance through the SBA directly when all this first started and received an email confirmation that they had my application and it would be processed (it’s been 3 weeks and radio silence). As soon as the PPP opened I started trying to apply but was told I could NOT print off the application and take it to my bank as it was closed to the public except through drive through and they would NOT take the application. I started trying t apply online 4/3 and they kept changing the format, the web-site or the site kept crashing. They re-vamped and re-opened the application the next Monday morning (4/10 I believe) and I immediately started trying to apply and would get through the first page and hit enter and the site would crash. I literally spent 6 – 8 hours a day in front of my computer trying to apply. We have business accounts at 2 different banks, one being Wells Fargo. I had been trying to get through to WF for over a week and the site kept crashing. On 4/10 I finally got through to the site only to be told they had depleted their funds. I couldn’t apply to any bank I did not have a business account with. I finally out of desperation contacted our personal banker and she told me she didn’t even know what form to use because they had changed it 15 times in a week! She finally located the correct form, I spent the next few hours filling out the application and gathering all pertinent info and emailed it all to her. She sent me a confirmation number for the upload of my application on 4/8. I got a confirmation email from my bank the next day saying that they had received my info and they were uploading it to the SBA and to please upload all pertinent documentation which I had already done. I got 2 more emails the last 2 days basically saying that my application may or may not be in the SBA hands and it may or may not be somewhere in process and I may or may not get funding. Then last night we were told that they were all out of money AGAIN and then we hear Ruth f’g Chris steak house gets $20M ???? WTF? I can’t even get $35,000 but a multibillion dollar conglomerate restaurant can get $20M?? I am beyond pissed, worried and almost in tears. I know it doesn’t seem like much to them but we have 20+ people depending on us for their income/livelihood and I feel responsible for them. We had to shut our doors for a week with NO INCOME and then got to re-open but only for take out or delivery at about 25 to 30% of the income we were taking in. I don’t want to shut our doors because we have people depending on us, some with families. How can big conglomerates eat up all the funding ans small mom & pop operations can’t even get $35,000? I am heartbroken and livid all at once.
Jammie
This is sad. I feel sympathy for all of you who have suffered the loss of income without the hope of relief. I wish you all well.
I’m not a small business owner. Yet I am also livid.
Something is very wrong here.
Thanks for sharing your troubles and for giving an amazing account of what’s happening.
Transparency is required!
Ranndy
JammieI own a small business in California. I applied for the PPP on April 3 through B of A. I immediately received an email stating my application was submitted. I was hopeful. Then I received an email stating my documents had to be uploaded to a company called Intralinks, so I uploaded the documents. Still hopeful. Then I received a phone call from a B of A representative and she told me I need more supporting documents, Some tax documents from 2019, so I uploaded those documents, Now, I’m not so hopeful, as this is dragging, and I’m thinking that’s the B of A plan, drag it out. Four consecutive days of phone calls to the same B of A representative with no return calls, and finally no money left!
This just proves what we all know. That small businesses can’t afford to donate to politicians, so we don’t matter to politicians.
My suggestion to everyone is to do what I intend to do. After we are all freed from the shelter in place, I plan to have a dinner party with several friends and business associates at Ruth’s Chris Steak House. When the check arrives, I plan to leave a nice note, thanking the wait staff, along with an IOU stating payment is forthcoming and approved by the PPP.
Then we’ll have to go back to work, working longer hours, for less pay, so we can figure out how all of our small businesses are going to pay the new tax rate hikes that is looming to pay off the trillions of dollars that the nation will owe in debt.
Peter Rose
Fantastic letter. Shared, tweeted, saved, and remembered by this indie business in Michigan. Beautifully and forcefully said.
Liz Sanders
I feel your bank did you a huge disservice. They had you wait way too long to apply! It was common knowledge that these funds were first come first serve type basis. So the sooner you got your app in the better. The company I work for applied on the 7th and we are closing on the 20th. I was worried we wouldn’t get approved bc of how long we waited. When they open up the next round be sure to apply the first day. Also, are you using a small bank? I would suggest that. The larger banks (Wells Fargo, BOA, etc..) get overwhelmed quickly. The day I applied for our loan, Wells Fargo had already stopped accepting apps.
Also, my FIL is a CPA for small businesses and all of his client were approved. These include gymnastic/dance gyms, hair salons, etc..
Jennifer Estes
Thank you for posting this! Your exact words are how I’m feeling right now.
I am a small boutique owner in Montana. I’m located in a small tourist town and right now that’s not working for us during the stay at home order. Travel has come to a halt, as we all know. My small request was crumbs to what these big Corporations received. But for me it could mean keeping the doors open or have no choice but to shut down….
I’m so disgusted with the big corporations as well as the lenders who backed them during all of this.
Also, I read Delta got over $1 billion. Doesn’t make since.
Ranndy
I own a small business in California. I applied for the PPP on April 3 through B of A. I immediately received an email stating my application was submitted. I was hopeful. Then I received an email stating my documents had to be uploaded to a company called Intralinks, so I uploaded the documents. Still hopeful. Then I received a phone call from a B of A representative and she told me I need more supporting documents, Some tax documents from 2019, so I uploaded those documents, Now, I’m not so hopeful, as this is dragging, and I’m thinking that’s the B of A plan, drag it out. Four consecutive days of phone calls to the same B of A representative with no return calls, and finally no money left!
This just proves what we all know. That small businesses can’t afford to donate to politicians, so we don’t matter to politicians.
My suggestion to everyone is to do what I intend to do. After we are all freed from the shelter in place, I plan to have a dinner party with several friends and business associates at Ruth’s Chris Steak House. When the check arrives, I plan to leave a nice note, thanking the wait staff, along with an IOU stating payment is forthcoming and approved by the PPP.
Then we’ll have to go back to work, working longer hours, for less pay, so we can figure out how all of our small businesses are going to pay the new tax rate hikes that is looming to pay off the trillions of dollars that the nation will owe in debt.
Deb
RanndyAlso for those of us self-employed folks paying for our own health insurance — the entire bill — what do we think is going to happen to those rates because of Covid-19?!
Lindsay
Please clarify if you have been told by your banker (who originally said you were tentatively approved for $40,000) that your loan will not be funded.
The applications that were processed and approved in the first round used up the allocated funding. Then it was reported that the fund was gone. Is your tentative $40,000
included in the total from the first round? Or was your application rejected? Please get a direct answer from your banker before assuming that NO SMALL BUSINESS will get any funds.
nicki knapp
Amen girl! The exact same thing happened to me! I own a small trucking company in SC and I applied and was shut out as well! I am furious! This is not right!
CC
Please update your rant when you actually hear back from your bank. They are creating these processes with half their workforce, or less, to help process all these applications. You haven’t been denied and are further in this process than most. If it takes longer to get your money through a brand new process during the pandemic, it should be expected. Unless you were actually denied, you have no idea whether or not your initial response or application has been approximated in the total estimate of the money already spent. And for all the other small business owners out there, keep calling the banks. There are some still taking new applications today. It’s just like all the people bitching about how hard it is to get unemployment right now, because 22 million people are overloading the system and expecting them to hire and train people while they’re talking to everyone around the clock. It’s going to take time to adapt to this new normal and new demand for everyone trying to help you.
Angela Martin
They wanted more help for small businesses and the Republicans changed the details about who qualified.
Deb
I’m trying my best to not get political. They took steps to prevent & obscure oversight over money. Why ya think?!
Try the College of DuPage Small Business Development Center. They’re in Glen Ellyn. In normal times, they have great workshops about financial management, etc. Your brain will be stretched, it might hurt, but you come out stronger for it! For weeks now we’ve been getting regular email notices that clear up confusion about sources of grants and funding. Of course no one can make money appear when it has evaporated. But they have information.
And, as we all know how powerful lobbyist representation works in Washington DC and state capitols, somehow small business must band together and get powerful lobbying representation. That’s how you change the equation, play the game. Think of it as similar to unions representing employees. We cannot possibly compete in Washington same as the big companies. We need to band together, BIG. Separately, we’re sole proprietorships, companies of 4, companies of 50. Tiny, out-represented, LOST. All together though, we’re the largest employer/employee base in the country! We need to demand more respect, and yes sometimes we’ll have to PAY for that respect. We need to scream like the biggest loudest coordinated orchestra of angry people.
This is also for the health of the U.S. economy, and Main Streets everywhere.
Maegan Tintari
Yeah. I received the email yesterday that funding had run out. Like you, I was only asking for $15,600 from the PPP for my bar/restaurant, which honestly would have only been a little bandaid and not even come close to covering two months of rent, but it meant we could pay employees and utilities maybe and now there’s nothing while big chains get the bailout. It’s so sad. I don’t know what we’re going to do. Good luck to you.
Bernadette
We are in the DC area and waiting to hear our fate. We prepared our documents before the funding was even approved and submitted on day one. We have not heard yet. This does seem very unfair to what I think of as small business owners.
Amber
” I don’t know, nor do I care whose fault this is. ” How do you expect this to change without identifying the problem, and demanding the changes? I feel ya, but this is why these corporations continue to do this every single time. We have to care, and we must organize and do something about it.
Mary
Oh my goodness! THIS….this…just this. This is ME. Almost, but I didn’t even get the call that I qualified for what I asked for, much less more. I did all the leg work, got all the paperwork and information ready only to find out YESTERDAY that the PPP was out of funds and the EIDL was in appropriations. I got the call that, “sorry, funding ran out. But thanks for considering going through us for your loan.” As for the EIDL, that’s available on a first come, first serve basis and I have no idea where I am in line.
I run a small child care center in Wisconsin. Although we are still open and serving Essential workers, we are in fact, essential ourselves. I lost half of my enrollment (licensed for 50 children) due to their parents/guardians being non-essential.
I received a call from my State Licensing Agent, asking if I intended on staying open. And if so, they would be so grateful and they are working on funding and grants and hazard pay for my staff. I met with my staff, decided on who would be laid off, the rest decided to pull up their boot straps and we dug in.
We have seen nothing.
I lie, we received an email last week stating, “It is the Week of the Young Child and DCF is celebrating YOU! Families are lucky to have you supporting their child’s development during the early years. Thank you for providing high-quality care to Wisconsin’s little ones!” ( I am also so mad that I forgot it was the “Week of the Young Child!)
Was there cake? Did they have cocktails? I was busy changing diapers and checking my email and feeding children and checking my voice mail and trying to keep 20 or so kids from being to close to each other and picking their nose and coughing and taking temps and I didn’t get any damn cake!
I’m pissed and angry and sad and exhausted.
And to the person who complained that her blog was too long…hopefully you didn’t make it to the end of mine either, because you are possibly part of this whole problem.
And yes, stop blaming republicans and democrats, and liberals and conservatives. They all screwed me. And I didn’t even get dinner first (or cake!)
oralia diaz
As a small business owner I am committed to paying my 3 employees as long as I can. (I hire mobility impaired -disabled wheelchair users). I applied for a loan with the expectation of receiving some assistance to help me keep them employed. I also immediately borrowed from my savings to keep us afloat. It was a good thing I did as I did not and will not get any assistance from the government. It was never intended for us, it has always been about big businesses.
Mary
I applied and got turned away as well however a person I know who’s business is still up and running was able to apply and received $150,000.00 WTF while we are closed down and getting nothing he was laughing saying by the time they mess with their numbers they’ll (him and His partner) will pocket around $50,000 each , meanwhile all of us have our businesses closed and are running in the red …. hail to the American dream, seems if your a “small business “ of under 10 employees we dont count.
Mark
Have to agree that the problem is with the bigger banks and how they prioritized the application process going to the SBA. We got a PPP loan (applied on 4/6, funds securted 4/9, and deposited 4/15) for our gym with 1 employee though BMO Harris. Our local branch was no help at all and clueless throughout the whole process. The only reason we got through the red tape was because my employer also banks with BMO Harris (and was applying for a PPP loan) and their commercial banker was willing to submit the application for our gym as well. Had we gone through the normal process via the BMO website, we would have missed out on the loan.
There will be another round of funding now that the bad press is heating up on congress. The only upside is that all the bigger companies that got priority will be out of the loop and the smaller businesses will finally get serviced by the big banks. The problem is that the delay could be much worse for the smaller companies that may not have the reserves to survive.
Gina
To say that this is not a “democrat versus republican post” in an attempt to remain neutral and not make this issue a “political thing” is a mistake — a mistake commonly made by people who dislike discussing politics. I know a lot of people who shut down at the mere mention of anything political, preferring to remain insulted in their own little life bubbles and pretend that what goes on in Washington has little to do with their everyday lives. It’s times like this when they find out how wrong they are. Since this is a federal government program, who we elected at that level directly impacted how/why the decision was made to allow this money to go where it shouldn’t, and why the bigger businesses got the first bite of this apple. I can’t stand the war zone that has become today’s politics either; and God knows I’d give a kidney for a truly UNBIASED news source. But the worst thing you can do right now is to disengage or remain neutral. Because to say that you don’t care whose fault it is all but guarantees this will happen again. Remember this: EVERYTHING is political! So do your research. A good place to start is to FOLLOW THE MONEY. Find out who your candidates are accepting donations from (and how much), because corporate donors always expect something in return for their money. So when you elect a person already beholden to huge corporations before they even take their oath of office, don’t be surprised when they look out for those same huge corporations first, at your expense.
Melissa
I work full-time for a business in Illinois and we did receive the PPP grant, and $12 billion was also given to other businesses. Yes it sucks you didnt get yours, and my best friend in San Diego that is pending, and my father in Long Island that is pending. And it sucks that the govt couldn’t monitor the hospitality loans/grants more carefully. I agree. However this was done in 10 days. These loans usually take 1 year. And for it to be a grant and not paid back – unheard of before this. There will be mistakes, but hold tight – businesses will get the money. Congress is about to approve billions more, and it should get done quicker 2nd time around.
Jason
My biggest problem with all of this as a small business owner I feel like our government slapped me in the face.
They literally said on the PPP application 500 or less employees. Yet two examples of companies that took large loans which will cause hundreds if not thousands of small businesses to close their doors permanently.
Potbellys and Ruth Chris Steakhouse are multi-million dollar companies. That secured 10m PPP loans.
This is only 2 that have come to light but you can guarantee that there are more that were given our small business money. The money that we were all promised to help us out. I mean why not give Walmart or Amazon some loans while they were at it.
But to make matters worst and where that slsp in the face is really coming from and hurts.
Main Street Lending Program makes $600 billion available for loans to companies employing up to 10,000 workers or having up to $2.5 billion in 2019 annual revenues. The Main Street New Loan Facility (MSNLF) will provide for newly originated loans to eligible businesses, while a second facility, the Main Street Expanded Loan Facility (MSELF), will allow companies to upsize existing loans. Notably, unlike loans under the Small Business Administration’s (SBA’s) Paycheck Protection Program (PPP), loans under the Main Street Lending Program will not be eligible for full or partial forgiveness.
So first they take our money and now they get their own program.
I’m about to lose my cars for my transportation service because rich companies get to ignore the rules.
Jamie
JasonYesssss!!! These larger companies have more to fall back on. We aren’t banking a couple of million in profit every year.
Jamie Warren
I applied 3 weeks ago for the EID Loan. Still have hear nothing. Called the SBA to check status. I was caller 1762 which I expected. I waited 59 minutes to speak to someone. I was kindly told they received my application and would be in touch. On the phone for less than 3 minutes. They could not give me anymore information. I was under the impression that this was going to be a quick process to keep small businesses out of financial ruin. Applied for the PPP loan…. nothing. Obviously my family business isn’t the only one in this boat but what can we do? This wasn’t how this program was presented in my opinion.
Chris
Argh! I have heard that Potbelly has done the same thing as Ruth’s Chris. I wonder what other companies have done the same?
Kevin
I am the owner operator of a small car service in Connecticut having been in business 19 years and was having my best year ever when this happened applied for an SBA loan when it became available was told to jump through hoops to get documentation which took me 3 days send it in and if heard nothing since and after reading all these comments about all the little guys like myself who are part of our community and make a difference they give the money away to corporations that don’t need it they’re all trumps cronies it’s b******* there’s no regulation here or oversight to bunch of people that are lazy and just hand out as much as they can and one fell swoop and all the little guys like me and there’s hundreds of thousands of us who really could have used it these lazy bastards gave it to the big corporations cuz it was much easier
Tricia
I’m in the same boat. Small business, file my taxes on time, pay my bills on time, close down when the government says to close down. Received an email from bank saying they ran out of funds. Big chain companies got the bail out. So disgusted with all this. Congress needs to know. Thank you for writing this. At least I’m not alone in this.
Bonnie
I too was not able to get any loans for my very small business. I applied for EIDL and never heard a response. I bank with Wells Fargo (which now I know was a mistake) and I filled out interest to apply for the PPP the second it was available and I was JUST able to finally apply on Weds, less than 24 hours before the money ran out. At this point I have no hope that the government will help us. They should have a separate loan for small businesses with less than 10 employees. A 500 employee company is not a “small business” in my eyes.
Tawanda
I am WOSB CPA consulting firm in business for 10 years and applied on 4/4 since our bank was not ready until the next day after the PPP loan opened. We had all of our documents in ordered and submitted easily our support for a $225k loan the same day we submitted our application. Moreover, I have been paying my employees salaries since Maryland shutdown orders without any or little revenue coming in for almost two months now. On 4/16, the first day I heard from my bank that I needed to sign my application again. Matter of fact, they reached out to me twice on the same day the money ran out of the program letting me know that the signed application was received. Loan status remains as under review and not submitted to SBA. There are many complaints on PNC twitter feed account regarding people applying the first day and no change to their PPP loan status.
Transparency as to where our tax paying dollars went is the key for the program abuse. As small businesses, we all pay enormous Federal and state income and property taxes even in some cases where the taxes are paid even before we pay ourselves. While I believe Congress will approve more funding to the program it will come with some cost and additional changes to the program which may not benefit our businesses waiting the next round. As I have previously worked at several Federal agencies, be vigilant in watching the spinning that occurs from the SBA and politicians that most of the money went to small businesses in rural communities. For Ruth Chris Steakhouse to get that type of loan within 3 days of a program labeled SMALL BUSINESS and other small businesses not even hearing a peep from their banks after 12 days in the que with no customer follow-up, small businesses need to protest and demand our government help us.
On another note- Lobbyists are in the ears of Congress who sent the President a letter advising him in “kind words” to leave the insurance companies alone when the President stated he thinks, “the insurance companies need to pay businesses for all these years we have paid premiums for business interruption insurance.” No one is going to assist small businesses not even the Chamber of Commerces or other communities until we stand up in one voice to demand our assistance. Government shut us down and they need to open us back up…… and that includes making the insurance companies to make us whole again with the $800 billion in revenue they are sitting on!
Chris
My small business application was in on the first day before Noon. This was to be done on a First come first serve basis. I was also told 13 days later that the money ran out. The banks are getting I believe 5% on the loans. So they probably are taking it by amounts of the loans. I have already emailed my SBA in NJ and they are looking into it. It is not the end!!!!
Sue D.
I have a very small online business. Applied day 1 through my local business bank. A week later they said the SBA had guaranteed it. A week more and I signed documents and hope the bank releases funds today. It’s only 5 figures. The banks make very little on this size loan so it’s not surprising they process big loans and long time business loan clients first.
I’ve heard PayPal and other online fintech had much faster turn around times for very small companies. Probably all automated rather than needing old school loan officers, processors and paperwork like a local bank.
Jan
I own a corporation that started with my personal funding for 19 years. I needed a smaller amount to keep payroll flowing. I am pissed due to a lack of oversight.
I immediately applied for the EIDL funding 3/30/20 with no response but a confirmation number. I work frontline in a Covid-19 profession as my husband manages the business. I thought the programs would be our 1st break in 20 years to make life a little easier. Wishful thinking gets you nowhere. I will not patronize the greedy businesses that stole straight from the mouths of the family operations. Frustrated
Mary
I feel your pain. Wells Fargo closed their window for applications before they even opened it. We never even got the opportunity to apply until the PPP was broke. It’s criminal!
Sue D
I have a very small website business also in Illinois. I applied on the first day with my small out-of-state business bank where I’ve been a client many years, because my local bank, Chase, was not accepting applications at the time. It took the small bank a week to tell me the loan had been guaranteed by the SBA. Then another week until they said they had approved the loan internally. They still haven’t released the funds. Granted, it’s only 5 figures which means very little money for the bank, so I’m grateful if it arrives at all. That’s probably why big loans and long time credit customers got priority.
I’ve heard Paypal and other online fintech had much better turn around for very small businesses, likely because they don’t rely on brick and mortar loan officers, processors and paperwork.
Penelope
Your article is great and did hit the nail on the head. I am a sole proprietor of a graphic design business catering to other small businesses. Some retailers, some public/private economic development businesses. Of course the retailers had to close their doors and the others had to cancel all the events or postpone them to sometime in the fall. I applied for the SBA EIDL loan first and had to pull all the numbers together as well, but I did receive an application number. My banker encouraged me to go ahead and apply for the PPP too, but I had to have questions answered to ensure I filled in the application properly. Once I did that and submitted it to my bank, I got a notice they had run out of the funds. I emailed the manager of my bank branch to ask if there were any way he could intervene only for him to respond, Sorry-we’re out of the funding! I then asked if I should submit the application to another small bank but he said I should leave it with them in case other funding does come through. I had also read if you do apply at multiple banks, if you did happen to get funding from both you could be liable for fraud! Did not hear a thing from the second bank anyway.I prefer not to get political in this either but I heavily object to people blaming anything on Trump. I think it is the Democrats adding pork like a Christmas Tree to the original bill and what do you think of Nancy Marie Antoinette showing off her twin SubZero refrigerators full of Jeni’s ice cream at $10 a pint? But to your original point-they are ALL to blame. I have been giving everyone the benefit of the doubt because this has been rolled out in record time and I could not see how in the world any of these entities were going to be able to handle the massive volume I knew was coming. They definitely should have separated the entire program into at least two, maybe three or four levels and not mixed businesses with volume or revenue in the millions or billions, nor more than 500 employees. It should have been businesses with up to 25 employees at one level; 26-75 employees on another; 76-125, etc., etc. That way more really small businesses would have had the opportunity to have been seen. On another note-politically speaking, many of the people in Congress have been there waaayyyyy too long and have made a career out of being a politician which our Constitution NEVER intended. No one was supposed to profit from serving in Congress! Few of them serving today EVER ran a business nor was responsible for P&L-most got law dgrees or degrees in Political Science and immediately ran for office, then spent their first years running to be re-elected. This needs to STOP, regardless of party.
I have a great solution for that, which includes term limits, but here it is: I want to make Washington, D.C. a HUGE RV Park. NO ONE elected for office can sign a long term lease nor buy property in D.C., Maryland or Virginia. Each elected official is provided an RV on election-not given, not owned by the official, only used to go back and forth to D.C. from his/her state to serve the people for a maximum of TWO terms. If they can’t do their work in that time, they do not go back. They don’t deserve to go back. That would help get rid of lobbyists and other ne’er-do-wells lurking about in D.C. I’m not kidding. I want to start this movement and get rid of career politicians-so many of whom went to Washington with nothing, but when they leave, if ever, they are multi-millionaires! Now how does that happen when you know nothing about running a business? I think the last politician who actually listened to a constituent was Davy Crockett! I really like one of the ideas someone else put forth about all the small businesses banding together to have a louder voice, so I intend to sign that petition and another one I saw in this feed. I also like the idea of finding a CDFI to work with next go round. Let’s do band together and also complain loudly to your state representatives and officials. I’ve already begun that process as well… In between trying to do the work I actually do for the one client I have who is actually still working and needing my help!
Thanks for a great article and a great forum! I’m praying for all of us, not to mention a vaccine for this despicable virus!
Penelope
Thanks you for this!! I am using it and sending to my senators and congressmen.
Michelle Novoa
Shared this with my Senators and Congressman. I think the banks need to be investigated as well. I am with you – I sat there for HOURS refreshing my browser for the live portal. On one of those refreshes, it went live and I filled out my paperwork – there’s no way sooo many other businesses were ahead of me on this. I too was asking for 15k, maybe the banks wanted larger loans hoping for defaults to make even more money. I am pulling all my money out of my bank and searching for a credit union or other institution. Good luck to us all! Rooting for you!
Michelle Novoa
Also, I don’t know of anyone who knows anyone who knows anyone who received PPP money.
Lastly – boycotting Ruth Chris and Potbelly sandwiches
Jeremy
I’m sorry I agree that this program is a disaster and that most of the money has probably gone to larger corporations that are more likely to not default on the loans but if you’re that irresponsible of a business owner to not have a reserve to withstand tough times maybe you shouldn’t be in business. Don’t be a slave to banks and debt.
Bobbi Scherer
Have a men’s and ladies store in Iowa. Filled out the basically two page application at my local home owned bank I do business with. That was Monday- approved on Wednesday- had to sign and initial- money was in our account today. Guess maybe it’s the community banks where they know you make it easier. There have been many approvals listed in our paper- town of 25,000.
Thomas Stewart
What a surprise that the little business community is again ignored by the banks. The bailout of the banks on the last go around should have been a lesson…
Steven Fults
A previous comment identified the a fact: “The final data came out today and 4% of the loans took up 45% of the funds.”
The Government simply wanted to spend the money as quickly and easily as it could. Make as few loans as possible for the most value as possible equals less work for them. That’s what happened here. Those that really needed the help were pushed aside. Makes me want to vomit.
Ron
Steven FultsThat’s where they wanted the money to go like always to big corporations they don’t care about small business it’s like a dream come true for them all small business gone so corporations can control the world just as they want the democrats want all the money to go hospitals and the states now how much more money do hospitals need it’s not like if you get the virus there going to get free treatment more like a 5k-35k bill it’s all just a joke
Jonathan
Steven Fultswrong. just read facts instead of fiction. Four % of loans went to $1M or more. https://www.sba.gov/sites/default/files/2020-04/PPP%20Deck%20copy.pdf
Lenny Graf
This is why you can rarely get good seats for a popular concert. All of the good seats are already taken by season ticket holders, radio stations, and the wealthy elite. Also the Banks have a vested interest in servicing their biggest borrowers and protecting them first. In other words buisinesses that had a large Bank debt prior to the pandemic. The banks are ultimately in control and self serving to their interests in this situation. Many at this time are simply being told “Sorry SOLD OUT.”
Eddie
Lenny GrafThe author of this article appears to be an uninformed idiot. And unfortunately, it also sounds like he fell victim of an inefficient bank that did not process his PPP loan in a timely, efficient manner.
I have numerous clients that have small businesses as well as many that are self employed. With the exception of only 3, every client that applied for a PPP loan was approved and received funding. The 3 that did not obtain approval place no blame on the bank; they didn’t provide all of the required information in time but are doing so in order to be “in line” if more funding is approved by clowns, oh I mean congress.
The fiscal stimulus in response to COVID-19 came in three phases providing $2.2 trillion of stimulus funds to hopefully help save our economy. The 3rd phase is the CARES Act which itself is broad and comprehensive including many components. The Payment Protection Plan (PPP) is a small component ($350B) of CARES, designated for small businesses with 500 or fewer employees. Larger companies like Ruth’s (mentioned in the article) are not eligible for PPP if they have more than 500 employees, yet if there are numerous smaller companies such franchise owners, they likely qualify. The PPP loans are forgivable if used to pay specific expenses including payroll, and the payroll employees must remain on payroll or the loan will not be forgiven.
The PPP program IMO is vital to help save small businesses, and again from what I have seen, the program has been a huge success. We have worked around the clock to meet our clients’ needs, providing thousands of PPP loans to qualified clients in merely 10 business days. If as alleged in the above article some businesses received PPP funding in violation of the eligibility requirements, they and / or the banks which extended those loans have violated federal law, either in error or fraudulently, and they should be held accountable.
Kris Judd
Lenny GrafVery disappointing! Small businesses are the lifeblood of the U.S. economy, they create two-thirds of net new jobs and drive U.S. innovation and competitiveness.
Cheryl Henry makes over 6 million a year with Ruth’s Chris Steak House, she should take a pay cut or forgo her salary like other CEO’s of large companies are doing rather than working the system!
Ridi James
My business with eight employees got nothing. I applied immediately, got a run around similar to yours, and got nothing. In fact, worse than nothing because every working American is on the hook for $18,000 EACH in this $2 trillion boondoggle. Me and my wife are in for $36,000 of the bailout, and we’re getting ZERO back because we don’t qualify for the $1,200.
Jessia Hackney
Yes, girl! Yes!! PREACH!
Jonathan
I’m not in the business of defending big banks and/or Fed Treasury.. but these types of blogs/whining do not do much to help small businesses move forward. For what it’s worth… more than 3/4 of the PPP loans were $150k or less. Only 4% went to loans of <$1M (big businesses). The average loan size so far is $206k. Literally millions of small businesses will benefit from what has been allocated thus far – and once Congress refreshes the PPP program, millions more will benefit. These facts – easily found on the SBA website (link below) – do not align with the rally cry against 'the man' in the post. I get that. Some folks just need an outlet after things don't work out for them. Again, I'm not in the business of defending big banks or Treasury, but the speed at which this program came together and guaranteed $349 Billion in two weeks (!) is short of astonishing. And the information in this post is just wrong. Ruth's Criss could not have gotten a PPP loan for $20M, since PPP loans are capped at $10M. It's likely they were funded through other SBA sources. The PPP program clearly has problems.. but adding bad information to the mix doesn't help. Rather than fomenting angst and parlaying a 'woe is me' mentality, why not use this space to help fellow small businesses with a plan B and/or benefit from information that can actually assist in gliding out of this challenging times?
Ronald Holness
JonathanYou are wrong. Ruth’s Chris applied as two subsidiaries thus netting $20,000,000. Read and be informed. Big business is much smarter than you!
Marshrat
I got an email today saying that the EIDL money I had applied for 17 days ago has run out. Bits and pieces of everyone’s stories ring true.
Dolsot House KOREAN Restaurant
We need to start a real movement against our state and Federal government for a poorly executed plan, they should have really limited it to companies w total employees led than 5O0, large firms and publicy traded companies have many means of accessing capital including lines of credit, selling more shares, and various other sources….no wonder the $350B went so quickly when you have these greedy corporations getting $10M-20M chunks and the local guy looking to get $50,000 got zero…the family owned businesses. The backbone of every neighborhood in every state.
Jennifer
Anyone know where we can join a group of advocates to fight this together? If you know anyone that has started something to fight this where the small business owners who didn’t get any help are fighting this together please send me a personal email @ [email protected] Jennifer. Thanks!
SteveP
Let’s play with the numbers –
the loans were supposedly limited to companies with less than 500 employees, and employees that earned over $100,000.00 were too be excluded.
SO.. a $20,000,000.00 loan dived by 500 employees is $40,000.00 per employee.
But wait – $40,000.00 x 4 (because it’s for one quarter) is $160,000.00 per year.
OK other things were allowed, like utilities, but I have a tough time believing that the average serving staff member makes that much money.
Figures don’e lie – but liars figure.
Kari A
I am sorry this happened to you. I am a small business owner and I was approved and got the funding. When I applied it was only 2.5 times of your average monthly salary expenses is what could be received as payment: it did not include rent and utilities. I never remember seeing that only salary income as a determining factor. The funds can be used for rent, utilities and salaries; however to be forgiven 75% of the loan must be up towards salaries.
Anthony from Nashville
Great column, and all too true. Except you slipped into the “both-sidesism” that is all too common. Congress funds the PPP, the House did their best, even held it up at political risk to try and ensure more of the little guy got funded. The Administration ADMINISTRATES the program. When you start false equivalency both-sides whining you cloud what the real issue is. Mnuchin and his cronies are clearly steering the funds towards larger businesses and their favorites. There wasn’t enough money to begin with because of the big allotment for big business like airlines. But $350B could have gone a much longer way without the administration (that is Trump, Mnuchin, and their corrupt cronies only), not Congress. You can’t address problems when you do “both-sides” arguing, because the side that actually wants to govern doesn’t win enough seats, and nothing ever changes.
I hope they put more funds in PPP, I think they will. But more $ won’t fix it if the administration (again, who actually administers the funds) doesn’t ENSURE that true small business (under 100 employees) gets the lion share. They will never do this, because the real problem is from November of 2016, and we haven’t had a chance to fix it.
P
Anthony from NashvilleYou are ignorant if you think only republicans are the problem. “Both-sides” are corrupt, but if it helps you sleep at night then you can believe that Democrats are the perfect heroes.
Gary A. Domzalski/Affordable Antiques & More
Very interesting indeed! I’m glad I called my bank yesterday and surprised to hear someone dropped the ball over 4000 applicants in the area missing the grade. This does explain a lot. Still mystifies me how I was told it’s all used up but then later in assistant bank manager called me back finishing up everything for me. I’m not being greedy but even the amount they said I was applying for is less than half of just my monthly rent alone.
Brian Cain
Thank you for this response. I applied for the loan within 30 minutes of the page going live with Chase. I received an email saying my “inquiry was received” and I would either hear from Chase via phone call or email to finish the application process.
I still haven’t received either.
Yesterday, I called Chase only to be told there was no one to speak to regarding the status of my application.
Ibana Villasenor
What is this for ? Submit a Freedom Of Information Act for information and records from the SBA. Legally they HAVE to respond in a certain timeframe
I did apply, smoking mirrors of hope
I am small hair salon
JM
A LOT of the money is going to publically traded, multi-national companies (https://www.orlandosentinel.com/coronavirus/jobs-economy/os-ne-coronavirus-large-companies-get-small-business-loans-20200415-gonpormpjzgjve6jquazs6f6ci-story.html):
$10 million to Taco Cabana, a fast-casual restaurant chain with more than 160 restaurants based primarily in Texas. Taco Cabana’s parent company, Fiesta Restaurant Group of Dallas, also owns Pollo Tropical and between the two companies has more than 10,000 employees. (Chase)
$10 million to Hallador Energy, a Terre Haute, Ind.-based coal mining company with 915 employees. (First Financial Bank)
$8.2 million to Air T of Denver, N.C., whose 769 employees handle a range of aviation products and services. (Minnesota Bank & Trust)
$6.9 million to New Age Beverages Corp., a Denver producer of teas, kombuchas, bottled water, liquid dietary supplements and cannabidiol (“CBD”) topical products, with 934 employees. (East West Bank)
$6.5 million to Legacy Housing Corp., the fourth-largest producer of manufactured homes in the United States, with offices in Bedford, Texas, and about 800 employees. (Peoples Bank)
$6 million to Kura Sushi USA of Irvine, Calif., which has 25 restaurants, one in Florida, and about 1,400 employees. (Bank of the West)
$5.7 million to Perma-Fix Environmental Services, a nuclear waste management company in Atlanta with more than 250 employees. (PNC Bank)
$5.6 million to sporting goods manufacturer Escalade Inc. of Evansville, Ind. (Chase)
$5.2 million to Misonix of Farmingdale, N.Y. Misonix has 125 full-time employees who design, make and market minimally invasive therapeutic ultrasonic medical devices. (Chase)
$5 million to Sifco Industries of Cleveland, Ohio. Sifco’s 400-plus employees make highly engineered forged aircraft and engine components for the aerospace, energy and defense markets. (Chase)
$4.9 million to MannKind Corp., of Westlake Village, Calif., which has 233 employees who develop inhaled therapeutic products for patients with diseases such as diabetes and pulmonary arterial hypertension. (Chase)
$4.8 million to CPI Aerostructures of Edgewood, N.Y., a 230-employee manufacturer of structural assemblies for fixed-wing aircraft, helicopters and airborne intelligence surveillance and reconnaissance pod systems. (BNB Bank)
$4.6 million to Natural Gas Services Group of Midland, Texas, which has 270 employees. (Chase)
$3.6 million to PolarityTE MD Inc., a Salt Lake City company with more than 150 employees who design and develop regenerative tissue products and biomaterials to be used in medicine, biomedical engineering and material science. (KeyBank National Association)
$3.2 million to Adamis Pharmaceuticals of San Diego. The company’s 131 employees develop therapeutic products for respiratory disease, allergies and opioid overdoses. (Arvest Bank)
$2.9 million to Identiv, a Fremont, Calif., based company with more than 300 employees working on radio-frequency identification (RFID) technology used in security and access control. (East West Bank)
$2.9 million to CRH Medical Corp., based in Vancouver in Canada, which provides doctors across the United States with products and services to treat gastrointestinal diseases and has 395 employees.
$2.73 million to The Joint Corp. of Scottsdale, Ariz., which has a network of more than 500 chiropractic clinics, including 30 in Florida. The company has 150 employees. Its franchisees are independent operators, so their employees are not its employees. (Chase)
$2.4 million to computer software company Oblong Inc. of Conifer, Colo. (MidFirst Bank)
$1.8 million to RiceBran Technologies, a specialty food ingredient company with 121 employees and offices in The Woodlands, Texas. (Spirit of Texas Bank)
$1.77 million to Blonder Tongue Laboratories of Old Bridge, N.J., a 93-employee manufacturer of technology for telecommunications, broadcasting, entertainment and media.
$1.6 million to Bsquare of Bellvue, Wash., which has 139 employees and develops and deploys Internet of things-enabled systems. (Chase)
$1.4 million to AutoWeb, a digital marketing platform focused on auto sales with offices in Tampa and 171 employees. (PNC Bank)
$656,830 to Dallas-based Rave Restaurant Group, which has 275 Pie Five and Pizza Inn restaurants and 45 employees. (Chase)
B
Part of the conditions of these loans are that you can’t fire people and you must continue to pay them and at least 75% of the loan has to go to payroll. So, these loans to “large companies” are helping people who might otherwise be out of a job if not for the loan.
JM
BBusinesses have the loans forgiven if used to maintain payroll, but they are free to use the loan proceeds for anything they want and repay the 1% interest loan later. I think we’ll see a lot of companies do the later because companies low-interest loans.
HIDE BEHIND
Where have most of you been hiding, these two trillions are but icing pancake for large buisness, US has beenspendingup to 1000 billionsvamonth for at least 12 months propping up the financial system, even to extent we now have the world’s largest Corporate andbIsraeli national financial concern, BLACKROCK, MANAGING US treasury Affairs.
The largest monetary theft in World history, yes far larger than old bailout, has been long running.
Think:
Where did this and recent past trillion $ come from, as there is no basis of real growth in productivity or increase in economic security for over 140 millions living below poverty line; just the opposite infact.
The small buisnesses, sic, on internet do not contribute to GDP nor does dog walking for that matter.
We have an extraction of minerals, timber, oil and gas and military arms while importing 70+% of our foods and damn near all daily use items.
Country and World are in midst of massive economic and financial system makeover.
If your caught with empty pockets in your pants down standing do not blame your nanny in DC,they owe you nothing..
Get busy doing own survival and use the victim whiners groups to find ways you can leave them behind.
US nation and its peoples been in deep debt for last two generations, playing in a plastic candy world that has now melted.
They warned US many ways, “Amerians have on average less than $400 in bank, was on every news station for last 2 years.
Tee jay
Hello, just happened to come across your blog regarding the ppp and the alleged designed for small business theme it was/is masked as . My situation almost mirrors your. I am a small Mom and Pop( an s-corp, really though a 1 man operation) here in Los Angeles. An Hvac company. on my second year . Have no employees no payroll, but rather have IC whom I am unable to claim. None the less I pay myself x dollars, filed my taxes on time, you and I and millions of others are indeed a small business. On 3/18/20 I filed out several applications just in case something went south. I bank with Bank Of America as we know they gave preferential treatments to existing clients who had business loans with, ( what am I chopped liver because I dont have an existing loan? ) ok, they then, within a few days allowed the peons as myself with no loan history to apply. I did so, received a call on 4-10-20 from them stating everything was processed , he asked me a few questions, then replied and the next phone call would be from underwriting to get it funded, geez, 4 days later no more funds for this program. it goes a bit deeper for me. I subsequently filed for the eidl loan and advance on 3/18/20. A week later I contacted them for status and was urged to apply for the advance, well, hell, ok, sure, I did so, neber heard anything and yesterday I saw a blog on how to check the advance and eidl loan status ( which was not present before, trust me, I’ve been checking on a way to check without having to be YOU ARE CALLER NUMBER 2025 in que) saw a way to check out, ok, kool, I log on and it clearly says application received on 3/24/20, please click https://covid19relief.sba.gov/, lol, for self certification, ok kkkooolll we made progress, no sooner than I click the link, it now tells me in short, no more funds to help you and we arent accepting any new applications at this time> huh? wtf? how is this deemed a new application. Anyways read something about a class action coming in out of Maryland against the sba, def worth checking out
Big Corporations Get Paycheck Protection Program dollars as little guys wait: Small business owners need help sooner than these big companies – Rob Maness
[…] need help sooner than these big companies and they’re speaking out. Kyla Herbes published an open letter from small business on her blog House of Hipsters April 16, and pointed out a few facts that will likely get by most of […]
Chris Karel
PPP stands for Paycheck Protection Program and was “designed to provide a direct incentive for small businesses to keep their workers on the payroll.”. If you don’t have any employees (from above: “… I do not technically have a payroll and I’m the only person working for HOH.”), why are you expecting to get a loan through the PPP? Aren’t you playing the same game as the large companies you highlighted?
kyla
Chris KarelI’m an employee of House of Hipsters, and I expected to be able to pay myself.
kyla
Chris KarelThe money that I make as a self-employed person, pays for me to live…pays for me to feed my family…pays for me to pay my mortgage…pays for me to pay my rent. House of Hipsters invoices companies for a service, but I do the work. I asked my bank when applying if I qualified for this loan. They said yes. You are an employee of House Of Hipsters and you as an employee should be paid. Just because you don’t have a fancy payroll system, doesn’t mean you are not an employee.
Jocelyn
Chris KarelThe PPP was also for self-employed and independent contractors that owned businesses that were either DBA’s, Sole Proprietorship’s, disregarded entities such as Single-Member LLC’s that are treated like Sole Proprietorship’s and that is how Kyla was able to qualify. A business did not have to have any employees except the owner who is considered self-employed to qualify. The confusion came in as the first day applications opened they only opened to businesses that had W-2 employees and then the next week to businesses who fit under the 2nd category. The banks also were confused and working through the rules differently, as my bank told me I could only apply for my W-2 employees but could not include myself in the calculation even though I am a single-member LLC. I’m figuring out other ways to keep us all employed now though and really do not have much hope that the funding will come through at some point.
Kari
This was a good article – I represent middle market companies = small businesses, 95% of which are run by founders. There is no doubt it takes an incredible person to take on the risks to found a business. When you’ve cooled off though – I could realize use the tips on zhushing my balcony! Please still write that post.
Erin Romeo
What sad is that there are some of us small business owners who have a spouse being exposed everyday at work and could contract covid19. If they got sick? Our probability of losing the most is simply higher than anyone else. Period.
Beverly B Meteyer
Perfectly said! I have spent the last 2-3 weeks glued to my desk chair trying to get SBA money for my clients (mostly without charging them). I have had one (larger) client receive funding. I have been on webinar after webinar with my local NV SBA. They refuse to answer my questions or return my emails. I am a bookkeeper and tax preparation business so I understand the numbers, yet they kept changing the rules, and I kept redoing the applications. I knew I couldn’t apply to Chase because I would be lost in the red tape and games, so I applied to a small bank. Because I didn’t fit their perfect picture of a regular payroll every x weeks or all 12 months of the year, I had to submit an artificially low payroll number that will disqualify me even if I do make it through the larger businesses who applied. My banker said “we couldn’t submit your application before funding ran out”. Ha that’s because they keep finding ways to ask you for more BS, unnecessary paperwoprk to move your application to the bottom of the list.
SHAME on you SHAKE SHACK and Ruth Chris – I will NEVER eat there again!!!
Amber
I am so f*ck*ng furious I’ve all of this. We worked for 20 years. Took pay cuts, worked without pay taking a load against our home to pay staff when we first bought our restaurant. It’s a mom and pop shop, serving burgers and breakfast all day. It’s been in a small town for 50+ years. We’re closed. We’re without pay, going on week 6. Utilities and rent still the same. No loan, no PPP AND now we are being told we will foot the bill for the remaining unemployment taxes because the fund has already “capped out.” Funny no one mentioned the cap when they promised to pay everybody. We got a loan against our home, we’re already two thirds through it with overhead. Two week and we can just flush it all. So broken over all of it.
Karla
I applied for an EIDL 3-30 & via phone was told today it’s declined. The SBA changed the CARES Act & screwed the small businesses like mine. I’m complaining to my state law makers & online. A lawsuit is filed from Florida biz owners against the SBA. Every business is entitled to the 10k but SBA hand picked a select few & I call bs.
Arlie Thomas
Harvard, Ruth’s Chris and all the other mega entities involved gave somebody (ies) huge kickbacks. The qualifications specified they would have not qualified. Whoever approved those applications AND whoever authorized payment, should be fired, and all monies repaid (to the extent of seizing property) to be reissued to true, QUALIFYING SBA companies.
THIS WAS CRIMINAL !!!! AG Barr should immediately get involved. Those paid should have a small window, very small, to give it up.
No non-sense of lawsuits, Just Do It
Andrea
Arlie ThomasAG Barr is probably up to his neck in guilt! Wouldn’t be surprised if he’s culpable in this. OTHERWISE why is he silent now?
Richard Kahn
It is good to send FoIA requests to the SBA. Many of these programs are administered at the state level, so if one cannot get answers from the SBA, find out who is administering the funds in your state and submit the state equivalent of an FoIA request. Here in New Hampshire, the state Right-to-Know law is RSA 91-A. Any correspondence that you expect a reply from should be sent certified, return receipt requested. In New Hampshire, the government agency has five days to answer or explain why they can’t/won’t answer. There is some very real legal recourse if they fail to do either. Each state is different. You can probably find out the FoIA equivalent in your state by running a web search, “What is the right-to-know law in ?”
WuzYoungOnceToo
While even the small number of loans that went to large companies shouldn’t have happened, the fact is that the overwhelming majority of those loans…both in terms of count and $ amounts…did NOT go to those large companies.
For instance, ~$250 million in loans went to publicly traded corps, which accounts for only 0.7% of the total $349 billion in PPP loan that were approved. So again, while no funds should have gone to large corps at all, it is not even remotely accurate to say that those loans are what bled the PPP allocation dry.
” The size of the typical loan nationally was $206,000, according to the SBA report released April 16.”
So the overwhelming vast majority of loans went to small businesses.
WuzYoungOnceToo
WuzYoungOnceTooCorrection: I fudged on decimal places. $250 million is actually ~0.07% of $349 billion.
Andrea
Clearly you have hit a nerve! Look at ALL these comments.
I operate a family childcare in Virginia. I applied in March for every imaginable loan and grant I could find including a few that weren’t connected to the CARES ACT legislation. Guess What? My business has been closed since March 18th, it is now April 24 and I haven’t received a red penny and neither has anyone I know.
CeeJay
Today I spent 7 hours trying to get through to the SBA to find out why my EIDL application, made 7 weeks ago, has not been processed. I made a total of 5 calls. Each time I was escalated to the next tier and each time after waiting at least 1.5 hours, I was either disconnected or hung up on. One time I got a recording that said I was number 775 in line to speak to an agent and after 5 more minutes of waiting I was hung up on. After calling yet again to explain the disconnections, the tier one representative said she had worked for the SBA for one month and during that month, every other call was someone like me who had been disconnected or hung up on. She said SBA is purposely escalating calls to dead lines. THIS is what we get for our tax dollars? I cannot even explain the anger upon anger upon anger that I feel. Billionaires are getting money, but all I get is hung up on. This is WRONG!! I ended my day by calling House Rep. Brad Schneider’s office and then left a message for Congresswoman Lauren Underwood. Sadly, both offices said they were working remotely and could not answer phones but if I wanted to leave a message, someone would get back to me. Unbelievable.
Big Corporations Get Paycheck Protection Program dollars as little guys wait: Small business owners need help sooner than these big companies
[…] need help sooner than these big companies and they’re speaking out. Kyla Herbes published an open letter from small business on her blog House of Hipsters April 16, and pointed out a few facts that will likely get by most of […]