The CARES Act’s Paycheck Protection Program (PPP) loan applications opened to businesses April 3 and experienced a number of technical issues following a deluge of applications in the first few days. A number of wood floor pros told WFB they had applied for the loan but hearing back is taking time.
“I applied and am still waiting,” wrote Robert Pearce of Bob Pearce Hardwood Floors. “Had a request for more information. Sent in and I’m waiting, waiting.”
Cottonwood Finishes LLC of Portland, Ore., wrote that the company had applied with Bank of America, but had yet to hear back nearly a week later.
“[We] received a ‘don't call us, we will call you’ email,” the company stated. “No further contact or emails.”
Fenix Hardwood Floor Corp wrote that the process has been “frustrating,” noting that their bank had yet to be set up to handle the loan applications.
Meanwhile, in another effort to help businesses retain employees during the crisis, the federal government has rolled out another lending program for small businesses impacted by the COVID-19 crisis. The $600 billion “Main Street” lending program finances four-year loans to businesses with under 10,000 employees that were in good standing prior to the crisis, according to NPR. Principal and interest payments will be deferred for a year under the program. The regular banks issuing the loans will retain 5% of the loans while the central bank buys the remainder, according to the report.
“Firms seeking Main Street loans must commit to make reasonable efforts to maintain payroll and retain workers,” the Federal Reserve stated. “Borrowers must also follow compensation, stock repurchase, and dividend restrictions that apply to direct loan programs under the CARES Act.”
Those who have received or applied for the federal Paycheck Protection Program (PPP) loans may also apply for the Main Street loans.
