April 18th Poll: CARES Money Starts To Get To Business Owners In Need
Here's what we've learned from this week's survey of over 16,000 business owners across the U.S.
Where's The Money?
Earlier this week, the U.S. Government stopped accepting applications for two key CARES Act Relief Programs. For the business owners who got in under the wire, 70% are in a state of limbo wondering whether or not their applications will be accepted and 15% are waiting for the funds to arrive.
44% Of Small Businesses Close Doors Due To COVID-19
With 98% of business owners seeing 25% or greater impact on their businesses, 44% of businesses have closed their doors. However, for those with closed doors, the vast majority are saying: "I'll Be Back!" That's the #SmallBusinessStrong spirit.
Here's Why Some Small Business Owners Didn't Apply
For those who’ve decided not to apply, 36% didn't feel they qualified for relief. Reading the comments, the most common answer was because they were solo entrepreneurs, independent contractors, or self-employed.
This was disappointing because as we found in our discussion with Bob Nelson from the Small Business Administration, they were eligible.
Another 20% were working on applying but missed the cutoff.
Please let us know your status regarding the CARES Act loans, sharing what your experience has been so far. #SmallBusinessStrong
Comments (31-40)
We are one of the fortunate non-profits who have money in the bank from PPP...we have been with Pinnacle Bank since at least 2003 when we bought our first group home -- and they came through big for us. I hope there is a second round of PPP for those who did not get included in this one. As I read what others are going through, my heart goes to you. We are fortunate that Matt Smith, our loan officer worked Saturday the 4th and submitted 53 applications on Sunday morning at 8:45.
We applied first thing as well. Application was ready to go so that when we got the green light, we had everything on hand to submit. I've heard nothing back. Meanwhile, talking to a colleague, they waited to apply until they heard funds were running low and submitted on the 13th, I believe. Funds were deposited into their account on the 16th. Apparently NOT first come first serve....
I submitted a full and complete application to a local bank on time. I continued checking and was told the underwriters were processing my application. This was the message at least 2 times.
This week I got what looked like a mass message informing me that the money ran out but that when more money came in the application will be processed again.
Very disappointing.
No oversight to make sure the money actually got to “small” businesses.
We received both our CARES funds and the EIDL grant directly deposited into our business account at 2:00 am this morning. We got in under the wire one day before the first round of congressional funding ran dry. It took two weeks to receive an email with the documents to sign electronically and then received the funds literally 12 hours after signing.
You will not receive an email telling you the funds are in your account; you just have to keep checking through your banking app. You will see two separate payments. The PPP comes from the Treasury Dept and the EIDL comes from the SBA.
The big banks (except BofA) didn't want to participate. We've been a loyal customer of a "top 10" national Bank for 25 years. Applied the first day, but no communication from our relationship manager (any other time she responds to cell phone calls in 10 minutes). After four days we pivoted to a small lender in another state and they processed our application in minutes plus we were funded 10 days later from the SBA. Ironically, the day we were funded our national 25 year partner sent us an email stating PPP funds had run out. This tells me two things: 1) the large banks didn't want to participate & 2) twenty five years and millions of dollars of deposits & loans doesn't translate loyalty with big banks.
Looks like ShakeShack and the airlines needed the money more than the SMB's according to the SBA and government. We basically disclosed our financials to the banks so they can use it at a later time to spam us or sell our info to other financial institutions. Complete bait and switch.
I did apply through my bank early. My bank dragged its feet. Ran out of money before approved. Not real happy and hoping more money will come through.
I did not apply for funds. Thankfully, I had double digit growth in March, and April is only off 20% MTD. YTD I am only down 1%. I compared my situation to that of many of my customers and couldn’t bring myself to take funds from those who need it more. I am disappointed for those who won’t get the funds and pray that our country can resolve its differences so we can save more small businesses.
My experience has been horrific. Wells Fargo was not seemingly motivated to support small business evident by unpreparedness, link unavailable to apply and when the link appeared, there was no application. The banking industry unfortunately created a huge disadvantage. Prepared banks such as Bank of America were only working with their members. Needless to say, the day my application arrived from WF, the money was gone. I have been a long time member. I am still waiting and have yet to receive approval, denial , etc. I am receiving more emails presently advising the money is depleted than responses as to access the funds. Disheartening would be an accurate sentiment .