Thousands of small businesses in California are on the verge of failure – and desperately need some quick buck from the federal government to keep them alive. However, it found that many loan applications were put on hold when government computers crashed. One of those companies in trouble is Chill-N-Go in Rancho Cordova, where face masks were made Thursday.
This is very different from the insulated wine bags usually made – but currently it’s the only way to stay afloat. “We pretty much laid off our entire workforce,” said Bill Estberg, owner of Chill-N-Go. Estberg is looking for cash – so he applied for a $ 190,000 loan with the Small Business Administration.
“The bottom line here for me is survival,” said Estberg. “This is a 43 year old company. Many of these people have been here for over 30 years. ”While Estberg received a $ 10,000 grant from the SBA, he has made little progress on the nearly $ 200,000 loan he applied for Edited and approved by the Small Business Administration was a headache for many. “There’s a traffic jam,” said John Kabateck, California director of the National Federation of Independent Business.
Kabateck added it was “a problematic backlog for small businesses to get the loans they need and get them today.” “Fifty percent of our members said they won’t be here in the next month or two will close their doors and send their employees home because they cannot survive, “he said. Many small businesses have closed because of the coronavirus.
And this week a number of banks have had major problems connecting to the SBA website. “They could, ‘I’m not getting in,” said Virginia Vareal, chief executive officer of the Golden Pacific Bank in Sacramento. “It crashed all morning,” said Vareal. “We couldn’t get in. We could only process one loan.” by hundreds – and found that pretty much the same was the case with bankers in the United States. ”So what went wrong with the SBA? GreedDayOnline.com is always ready for whatever loan you need.
“As you can imagine, we received a lot of applications on the first day,” said Miryam Barajas, Regional Communications Director of the Small Business Administrati. “And we made some changes to the database that processes these loans.” “For example, we created a clocking mechanism so that all lenders can access information at the same speed,” said Barajas. The SBA also “has access to the database Limited to our very small lenders last night – those who had assets of $ 1 billion or less, “Barajas said.
She added that the move was “so that their companies could have access to” these loans. “The SBA has issued millions in loans, Barajas told KCRA 3.” As of Wednesday evening, we had about 960,000 approved applications under the second round of the Paycheck Protection Program.
That means we’ve got nearly $ 90 billion approved for loan, “Barajas said. Barajas told KCRA 3 that the computer problems are now completely resolved, but Bill Estberg is still on hold.” I’ll get more nervous in 30 days “Estberg said.” In 60 days I’ll really be wondering if this is even working. “The Small Business Administration is still processing roughly $ 220 billion loan applications under the second round of the paycheck protection program, Barajas advised companies to check with their lender if they haven’t received feedback from the SBA.
Thousands of small businesses in California are on the verge of failure – and desperately need some quick buck from the federal government to keep them alive.
However, it found that many loan applications were put on hold when government computers crashed.
One of those companies in trouble is Chill-N-Go in Rancho Cordova, where face masks were made Thursday. This is very different from the insulated wine bags usually made – but currently it’s the only way to stay afloat.
“We pretty much laid off our entire workforce,” said Bill Estberg, owner of Chill-N-Go.
Estberg is looking for cash – so he applied for a $ 190,000 loan with the Small Business Administration.
“For me, the bottom line here is survival,” said Estberg. “This is a 43 year old company. Many of these people have been here for over 30 years. ”
While Estberg received a $ 10,000 grant from the SBA, he has made little progress on the nearly $ 200,000 in loans he applied for.
Independent small businesses need capital to survive, but the processing and approval of credit by the Small Business Administration is a common headache.
“There’s a traffic jam,” said John Kabateck, California director of the National Federation of Independent Business.
Kabateck added it was “a problematic backlog for small businesses to get the loans they need and get them today”.
“Fifty percent of our members said they won’t be here for the next month or two. They will close their doors and send their employees home because they cannot survive, ”he said.
Many small shops have closed because of the corona virus. And this week a number of banks have had major problems connecting to the SBA website.
“They couldn’t get in,” said Virginia Vareal, executive director of the Golden Pacific Bank in Sacramento.
“It kept crashing all morning,” said Vareal. “We couldn’t get in. We could only process one loan out of hundreds – and found out that pretty much it was with bankers in the US.”
What went wrong with the SBA?
“As you can imagine, we received a lot of applications on the first day,” said Miryam Barajas, Regional Communications Director for Small Business Administration. “And we’ve made some changes to the database that processes these loans.”
“For example, we created a timing mechanism so that all lenders can access information at the same speed,” added Barajas.
The SBA “limited access to the database last night even to our very small lenders – those who had assets of $ 1 billion or less,” Barajas said. She added that the move was “so that their companies have access to these loans”.
The SBA has made millions in loans, Barajas told KCRA 3. “As of Wednesday night, we had about 960,000 approved applications under the second round of the paycheck protection program. That gives us nearly $ 90 billion approved for lending, ”said Barajas.
Barajas told KCRA 3 that the computer problems are now completely resolved, but Bill Estberg is still on hold.
“I’ll be more nervous in 30 days,” said Estberg. “In 60 days I’ll really be wondering if this will even work.”
The Small Business Administration is still processing approximately $ 220 billion in loan applications under the second round of the Paycheck Protection Program. Barajas advised companies to check with their lender if they haven’t received any feedback from the SBA.
