Applying for FEMA disaster assistance? You should apply for an SBA loan too, FEMA says
Thousands of people across Florida are eligible for disaster assistance from FEMA following Hurricane Ian. But if you are applying for help, FEMA wants you to apply for a disaster loan from the Small Business Administration too.
Senate votes to extend small biz loan program for 2 months
WASHINGTON โ The Senate passed a bill 92-7 on Thursday to extend the deadline for business owners to apply for forgivable loans through the Paycheck Protection Program, giving applicants two more months to apply for federal aid. The bill had already passed the House, so it now goes to President Joe Bidenโs desk to be signed into law. Congress started the loan program last year to help businesses survive the COVID-19 pandemic. Business groups lobbied lawmakers to keep the program going to help ensure businesses that still need help can get it. The Small Business Administration reports that it has approved nearly 7.9 million loans totaling about $704 billion.
Senate confirms Isabel Guzman to lead small biz agency
(AP Photo/Alex Brandon)WASHINGTON โ The Senate on Tuesday overwhelmingly approved President Joe Biden's pick to oversee the Small Business Administration, an agency that has seen its portfolio expand in response to the coronavirus pandemic. Guzman is a former Obama administration SBA official who currently heads Californiaโs Office of the Small Business Advocate. In that role, she oversaw efforts to help that stateโs small businesses survive the pandemic. The Small Business Administration oversees loan programs to help businesses recover from natural disasters, enhances access to capital through loan guarantees and provides training and technical assistance. Guzman said she would work to ensure money gets into the hands of the small businesses hurt the most by the pandemic and the economic crisis through no fault of their own.
More coronavirus relief on the way for small businesses
(AP Photo/Jae C. Hong, file)NEW YORK โ For Nancy Sinoway, a second coronavirus relief loan would increase the chances that her dressmaking business will survive. The SBA will initially accept only applications submitted by community financial institutions, or CFIs, lenders whose customers are minority-owned and economically disadvantaged businesses. Starting Monday, applications for first-time borrowers submitted by these lenders will accepted, and on Wednesday, applications for second loans. As with the first two rounds of the PPP, applications must be submitted online at banks and other SBA-approved lenders. The PPP loan Sheets got in the spring helped tide him over.
Minority-owned companies waited months for loans, data shows
Congress has approved a third, $284 billion round of PPP loans. The recent data from the SBA provided a more in-depth look at businesses that received loans than data released on July 6. The AP and other news organizations successfully sued under the Freedom of Information Act to make data on all PPP loans public, leading to the latest release. The SBA did not address the timing of loans to minority-owned businesses when asked for comment by the AP. MBE Capital, a lender focusing on minority-owned companies, received a commitment in mid-May from NBA Hall of Fame member Magic Johnson for funding for $100 million in PPP loans.
Local landscape company one of 20 linked to SBA loan applications with identical tax number
โI donโt know how anybody would come in contact with that number,โ Gascoyne told News 6. When he asked the SBA for an explanation as to why 20 companies would have his tax number, staffers could offer no simple explanation. After careful review, Obrien-Buster determined the tax number was used by the same bank and each company inadvertently used that bank number instead of the EIN assigned to them. โHis business wasnโt associated with that number,โ Oโbrien-Buster said. "It worked out and I have you to thank.โThe Secret Service has set up an email for small business owners that suspect their accounts may have been compromised.
$4.8 billion meant to keep Floridians employed during pandemic went to businesses with โzeroโ employees
ORLANDO, Fla. โ Billions of dollars in funds meant to keep Floridians employed during the pandemic went to nearly 100,000 businesses who reported zero employees, according to newly released data by the Small Business Administration. News 6 found Florida businesses received roughly $32 million in PPP loans, meant to support more than 3.3 million jobs. When years of savings were not enough, Voeller, like so many other small business owners, faced the realization she may have to close her 44-year-old child care center. The PPP loan has given us some time, and I am hoping it has given us enough time to get to the other side,โ said Voeller. The PPP loan has allowed Aspire to maintain full operations pandemic, without interruption, and to continue providing much needed critical services to the most vulnerable in our community.โGrayRobinson P.A.
Small business owners waiting to learn more about how to apply for PPP loan forgiveness
ORLANDO, Fla. โ With no new stimulus package in sight, small business owners are still waiting to learn more about the forgiveness loan application which is part of the Paycheck Protection Program. The PPP was part of the $350 billion handed to the small business administration as part of the CARES Act. Both business owners said theyโre ready to apply for the loan forgiveness, but thereโs still ambiguity in terms of the process. Thereโs probable bipartisan support for this streamline forgiveness process of PPP so letโs go ahead and move that. โThe SBA doesnโt want small business owners to spend a lot of time with paperwork,โ Granda said.
Orlando Secret Service creates new email for small business owners
ORLANDO, Fla. โ The Orlando Secret Service has created an email address for business owners who feel their companies may have been used in cybercrime to fleece the Small Business Administration. The email ORL.CFTF@usss.dhs.gov was established this week as a direct connection to the Secret Service for Small Business owners who believe their companies have been โmisrepresentedโ by thieves. News 6 first reported that the Orlando U.S. Secret Service had already recovered more than $2 million in stolen assets earlier this month. OโBrien-Buster said the local secret service has already investigated 100 cases that led to $2 million in local financial institutions. If you feel your business has been compromised you can email the secret service at ORL.CFTF@usss.dhs.gov.
Size mattered: Big companies got coronavirus loans first
The PPP made very low-interest loans available to any business -- or any franchisee of a business -- with under 500 employees. It was not designed for very small businesses.Its not clear how many small companies have failed because of the pandemic. The data released by the SBA July 6 does show that by June 30, 85% of the PPP loans had been for less than $150,000. Among other big banks, nearly 18% of the 1,185 loans TD Bank made the first week were over $1 million, as were 13% of Truists 7,143 loans. But it may have been too late for who knows how many small businesses, said Karen Kerrigan, president of the advocacy group Small Business & Entrepreneurship Council.
House demands coronavirus loan info from Treasury, banks
WASHINGTON A House subcommittee investigating billions of dollars in coronavirus aid is demanding that the Treasury Department, the Small Business Administration and several large banks turn over detailed information about which businesses applied for and received federal loans. The letters ask the banks and the department for a complete list of applicants for loans, whether they were approved and also details on the guidance Treasury has issued. Democrats say they are not receiving enough information about the loan disbursements and fear the Treasury Department has favored large, well-funded companies over smaller businesses in underserved communities. The agency has only provided general information, such as the total amounts of loans awarded in a given time period. The loans can be forgiven if businesses use the money to keep employees on payroll or rehire workers who have been laid off.
Treasury chief refusing to disclose recipients of virus aid
(Al Drago/Pool via AP)WASHINGTON Building ramparts of secrecy around a $600 billion-plus coronavirus aid program for small businesses, Treasury Secretary Steven Mnuchin has moved from delay to denial in refusing outright to disclose the recipients of taxpayer-funded loans. We believe that thats proprietary information, and in many cases, for sole proprietors and small businesses, is confidential information, Mnuchin said during the hearing by the Senate Small Business Committee. Mnuchin promised in his testimony to give the GAO access to the PPP loan data. Mnuchin's pledge to give the GAO's auditors access to the PPP loan data appeared to satisfy some senators, who didnt press him on public release of the information. Praise for the small-business loan program flowed to Mnuchin and Carranza at the hearing from senators from both parties, who cited the positive economic impact across the country.
Treasury chief refusing to disclose recipients of virus aid
(Al Drago/Pool via AP)WASHINGTON Building ramparts of secrecy around a $600 billion-plus coronavirus aid program for small businesses, Treasury Secretary Steven Mnuchin has moved from delay to denial in refusing outright to disclose the recipients of taxpayer-funded loans. About 10 weeks after the program was launched, the SBA says it has processed 4.5 million loans worth $511 billion. While the SBA administers the program, Mnuchins Treasury Department has ultimate control over it. We believe that thats proprietary information, and in many cases, for sole proprietors and small businesses, is confidential information, Mnuchin said during the hearing by the Senate Small Business Committee. Praise for the small-business loan program flowed to Mnuchin and Carranza at the hearing from senators from both parties, who cited the positive economic impact across the country.
SBA leaves businesses still hoping for more leeway on loans
NEW YORK โ Small businesses hoping for more leeway in using coronavirus loan money were disappointed as the government released instructions for seeking forgiveness for the loans. According to the instructions, loans can still be forgiven in full only if the money is spent within eight weeks of receiving it. Many small businesses say the eight-week period is too restrictive; loan forgiveness applies only for money spent through June 30. Loan forgiveness was a key factor in many owners seeking the loans. While technically they can do that, they could not get forgiveness on the money spent for unapproved items.
Unforgivable? Restaurants fear loans won't bring relief
She needs to use some of the loan money to pay those expenses. Many restaurants fear for their survival, according to a study released in April by the National Bureau of Economic Research. Restaurant owners may be getting some help from Congress. The House bill would allow business owners to use their loan money for whatever bills they need to cover. The Democratic bill would also give business owners more time to repay their loan amounts that arenโt forgiven, a minimum of five years.
Government loans start flowing to small businesses
NEW YORK โ The flow of money to small businesses under the government's $349 billion coronavirus relief plan is picking up momentum although many company owners are still waiting and wondering. The Small Business Administration reported Monday that more than 959,000 applications had been approved for over $232 billion from the Paycheck Protection loan program. The money Amy Power received Friday evening will go toward paying the eight staffers of her Dallas-based public relations company. Because the coronavirus has devastated the economy as a whole, some owners donโt feel that the loan money would guarantee their companiesโ survival. Julie Goldman got her loan money Monday.
Urgent question from small businesses: When will aid arrive?
That's the urgent question for small business owners who have been devastated by the coronavirus outbreak. โRelief canโt come soon enough โ weโre a cash business with small margins," says Rammel, who is looking to Small Business Administration loans. The rescue package signed into law Friday provides for Small Business Administration loans to companies as well as to sole proprietors and freelancers. And the Federal Reserve plans to set up a program to lend directly to small business owners. On its face, the rescue aid appears to address some of the most vital needs of small businesses, notably their ability to maintain or hire back furloughed workers eventually.