We have friends who own and operate a small business. Very small, truly a “mom & pop” operation that’s been doing business and getting great customer reviews for decades.
They shared some of their frustration attempting to apply for a small piece of that first big “Paycheck Protection Program” support package aimed at keeping businesses afloat. I’ve edited out their names and that of their lender.
Just about everyone has suggested we try and get some of the help being offered for small business’. We had been diligently searching what programs we might fit into and how to fulfill their requirements. We applied for a PPP loan after consulting with our tax preparer, spending many hours assembling the needed documents and filling out the various forms and finally scanning and emailing our bank a 25 page application.
After a few days we get this response.
Aloha,
Thank you for your recent application. After careful consideration, we regret to inform you that we are unable to approve your Paycheck Protection Program application as presented. Attached is our Adverse Action letter which will outline further the reasons why we were not able to process your request.
Thank you
And the attached “Adverse Action Letter” simply said that their application did not meet the bank’s program criteria.
But it offered, invitingly, “if you have any questions, please email us….”
So they did. Here’s the next exchange.
Could you please be more specific as to why we do not meet program criteria. We met with our tax preparer and spent many hours preparing our application and feel we deserve a more complete explanation as to why we have been turned down. Is our business too small to qualify? Clearly, bigger businesses with smart lawyers have no problem qualifying.
The response was received within a couple of hours.
Aloha,
Due to the high volume of requests we’ve received, we are unable to accept all applications. In addition, the Small Business Administration portal is overloaded and our ability to submit requests is limited. Because of our resources and the SBA’s limitations, we are forced to devote our efforts to process the loans that impact as many of Hawaii’s employees as possible.
Because we are processing current applications, we are unable to devote substantial resources at this time to researching individual PPP situations.
Mahalo!
Obviously very frustrating.
Then they learned about the next round, the Small Business Relief and Recovery Act.
This is a program set up by the city to administer $125,000,000 of federal funds as grants to small businesses on a first come first served basis. $10,000 is the maximum amount any business can receive. Their funding website oneoahu.gov opened last Monday and I submitted an application for on Tuesday morning. (This time with only ten scanned & emailed pages.) On Friday I got an email from a guy at one of the credit unions administering the grants asking for more documents and urging haste as the money was rapidly running out. He was extremely helpful and after several email exchanges he submitted a claim Saturday morning which will basically cover the two months rent we lost and hopefully keep us up and running a while longer.
We’ll keep you posted…. fingers crossed….
And our fingers are crossed for all of us.