Dear business owners,
Please be patient and let us not be apathetic in the process of dealing t=with the SBA and the Banks. These are times of extreme challenge and the playbook has never been created so far. So we are all, the Government, the SBA, the Bank and us the business owners are facing something unprecedented and there are no “playbooks” in place for this. So, let’s keep calm, do the bets we can do, expect for the best but prepare for the worst, and most importantly stop blaming others and try not to bring “partisanship” which has so deeply divided us in the last few years!
Here is a summary of an article from “Government Executive” which to some extend elaborates on the Chaotic Roll-out the SBA is facing with the ‘Unprecedented’ Stimulus Program.
Please stay calm and fair.
To read the full article: SBA Experiences Chaotic Rollout to ‘Unprecedented’ Stimulus Program : https://www.govexec.com/management/2020/04/sba-experiences-chaotic-rollout-unprecedented-stimulus-program/164366/
The Small Business Administration on Friday rolled out a financial assistance program unprecedented in its size and scope, creating an operational quagmire that has led to widespread confusion and frustration.
SBA is looking to disburse $349 billion to businesses with fewer than 500 employees as part of the stimulus package President Trump signed into law last week, a sum 290 times its normal annual budget. The agency is boosting its workforce to help administer the Paycheck Protection Program and other initiatives as it seeks to help businesses recover from the fallout of the novel coronavirus pandemic. The agency received $562 million to carry out Paycheck Protection and other programs. Employers across the country are hoping for a hasty implementation for the paycheck program that will forgive any loan a business uses for payroll and some other expenses, looking to reverse the recent trend that has caused record spikes in unemployment figures.
On Thursday night, just hours before the program was set to launch, Treasury Secretary Steve Mnuchin posted guidance for business owners and lenders, as well as the finalized application form. At the White House, Mnuchin said teams were working until 4 a.m. and promised the program would be fully operational on Friday. Still, several major banks said they would not be ready to accept applications Friday morning.
“We aren’t accepting applications for this program at this time,” JP Morgan Chase wrote on its website. “Please don’t send us any SBA or Treasury Department forms.” The bank eventually began accepting online applications Friday afternoon.
One small business owner who spoke to Government Executive called the process “so frustrating” as he had “very little guidance” on how to proceed.
“It’s total confusion,” the business owner said, adding he spoke to different people at his bank and received different answers. “The one constant is they have no guidance at all. They haven’t even been clear on how or where to submit applications.”
Another small business owner shared a note from her bank that said it was unable to answer what documentation she would need and other questions, as it was still waiting for the information from SBA as of Friday morning. The bank will not make loans available until Monday.
The business owner said her banker was “working to interpret these guidelines and build a digital intake solution that will simplify this process.” Her banker added, “We’re disappointed not to have received these guidelines sooner and understand how critical this program is to so many of our valued clients.”
Uploaded April 04, 2020