PORTLAND, Ore. — Federal money to provide loans for small businesses has run out. The U.S. Small Business Administration processed 14 years' worth of loans in less than 14 days, totaling more than $311 billion.
Now though, it is not accepting any new applications for the Paycheck Protection Program or the Economic Injury Disaster Loan Program.
The SBA is now is now asking Congress to approve additional funds for the Paycheck Protection Program because there are still thousands of small businesses waiting for financial help. Until that happens, it is not approving any new loans.
“I try to remain optimistic about this, but I'm not going to lie, it's been a challenge,” explained Steven Quick, the owner of SQ Merchant Services in Tigard.
Quick’s company processes payments. He applied for a small business loan but has yet to get it and now worries he may not.
“Yep, got it submitted, wait 24 to 48 hours, and then I got the notification this morning on all of social media that they're out of money, so you know throws that one out the window,” Quick said.
Andy Ricker, the chef and owner of Pok Pok, also applied for a small business loan the second he was able to, but still has not received it either and said the process has been far from easy.
“And, then we got an email later today, saying money is gone, we're going to keep your application in line, in the queue, so if funds do show up again, we'll keep the process going,” Ricker explained.
Ricker said he is not shocked this happened, but said it is frustrating to watch big corporations get these loans while many smaller businesses are now left out in the cold.
“I think there will be more money put into the systems, the question is will it be another round of money for big business or will the small guys, you know, get the help they need,” Ricker said.
Pok Pok had to close six restaurants and lay off 160 employees because of the COVID-19 closures. As for what the future of Pok Pok looks like, Ricker cannot say just yet.
“But, I can say without this money, it's almost certain that we will not come back whole, somehow Pok Pok will exist as a brand, but will every single restaurant reopen doing the same thing we did before?” Ricker asked. “I don't know how that's going to happen.”
The SBA said it will be able to issue new loans when Congress approves additional funding.