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business/technology Tuesday 31 March 2020
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Urgent question from small businesses: When will aid arrive?

By JOYCE M. ROSENBERG At companies small and in records dating to Word sands of loans after Hurri- Don Allison has bills coming
AP Business Writer large, from restaurants and War II. In the week that cane Harvey devastated due this week for his busi-
NEW YORK (AP) — When retailers to sports and enter- ended March 21, roughly the Houston area in 2017. ness, a publisher of books
will the money arrive? That's tainment venues, revenue 3.3 million people applied (The SBA didn't immediate- about the Civil War and
the urgent question for has essentially dried up. for unemployment benefits ly respond to a request for northwest Ohio history. He
small business owners who The same for the businesses — more than 10 times the information about handling and his wife are looking
have been devastated by that support those compa- number for the previous an influx of applications.) forward to a combined
the coronavirus outbreak. nies. Even employers that week and nearly five times John Arensmeyer, CEO of $2,400. But the royalty
They're awaiting help from are still operating have lost the prior record high. the advocacy group Small checks he must send out
the $2 trillion rescue pack- business as their customers Treasury Secretary Steven Business Majority, says he's require a bigger cash infu-
age signed into law Friday. have became too cautious Mnuchin has said the small concerned that the loans sion. And he's concerned
But with bills fast coming to continue doing business. loans would be available will be processed through about being in a long line
due, no end to business The rescue package signed starting Friday, and in an the SBA's traditional busi- of owners hoping to re-
closings and an economy into law Friday provides for interview with the Fox Busi- ness loan program, which ceive SBA loans.
that's all but shut down, Small Business Administra- ness Network, Mnuchin said relies on banks to handle “They’re going to be
owners are worried about tion loans to companies as he hoped to release loan the initial applications. slammed," Allison says of
survival. well as to sole proprietors forms later Monday. “Banks have to retool their the SBA. “How big a delay
Millions of owners face April and freelancers. The loans During the Great Recession, technology to do this," is there going to be?"
1 due dates for rent, mort- can be used for payroll, by some estimates close to Arensmeyer says. "It’s go- Loans are at least a short-
gage, credit card and oth- mortgages, rent and utili- 200,000 small businesses ing to be months before term need for many busi-
er payments. Some have ties, with those amounts shut down. Most of them this money gets out there. ness owners. But they aren't
been granted leniency forgiven and payments died a slow death, with the How many people are go- a solution for others that
from landlords and lenders. deferred. It will also sup- consequences — layoffs, ing to be able to maintain have been reluctant to
But even then, there are ply small loans that can, reduced investment and payroll, hoping to get this take on more debt after
other business and person- depending on an owner's expansion — occurring money?" the Great Recession. Lili-
al bills that are owed. And credit score, be approved gradually. By contrast, the On its face, at least, the ana Aranda, for example,
employees — at least those quickly. Employers can re- suddenness of the virus-re- rescue aid appears to ad- who owns a now-closed
who haven't been laid off ceive tax credits for retain- lated economic shutdown dress some of the most skin care business, doesn’t
— must be paid. ing workers, though not if is threatening to quickly vital needs of small busi- want a loan that will bur-
“How quick can we get they have obtained one of destroy even healthy res- nesses, notably their abil- den her with debt pay-
these funds?" says Adam the SBA loans. taurants, retailers and other ity to maintain or hire back ments — especially since
Rammel, co-owner of Many owners are also seek- companies almost without furloughed workers eventu- she doesn’t know yet how
Brewfontaine, a bar and ing separate SBA econom- warning. ally. The issue is whether it much the outbreak will af-
restaurant in Bellefontaine, ic injury disaster loans. And Katie Vliestra, an executive will come quickly enough. fect consumer spending.
Ohio, that's now limited to the Federal Reserve plans at the National Associa- “The challenge is cash She already carries a small
takeout and delivery ser- to set up a program to lend tion for the Self-Employed, flow," says Jason Duff, own- amount of debt.
vice. His revenue is down directly to small business an advocacy group, says er of Six Hundred Down- The same is true for Susin
60%. Yet he has eight staff- owners. she's concerned about the town, a restaurant in Belle- Greenberg, a freelance
ers, down from his usual 25, In addition, freelancers are lag time between applica- fontaine, Ohio. He has a hair and fashion stylist.
whom he must pay. now eligible for unemploy- tion and approval for even staff of eight, down from “Anytime I’m thinking of
“Relief can’t come soon ment benefits, something the small loans that are 27, handling deliveries and loans, I’m thinking I have to
enough — we’re a cash they hadn't previously qual- intended to have the fast- pickups. "We need mon- make money to pay it back
business with small mar- ified for. And owners can est turnaround. Most small ey now for us to be able in the long run," says Green-
gins," says Rammel, who be eligible for the $1,200 companies have only 15 to to make those payrolls as berg, who lives in Highland
is looking to Small Business per person payment that's 30 days of cash on hand, people come back." Park, Illinois. She's focusing
Administration loans. He available to many Ameri- she said. Duff has less than a week of on other forms of financial
needs the money despite cans depending on their There are also worries working capital funds avail- aid in the rescue package
receiving some conces- income. about potential logjams able. He is seeking loans but worries about how long
sions from his banker. Whatever the source of at the SBA. The agency's from family and friends as it would take to arrive.
Freelancers and people funding, how fast it arrives inspector general's office well as some patience from “We’re having to live
whose gig work has van- at businesses across the found that the SBA failed to vendors while he awaits through the wait," she
ished are also anxious country is sure to have a quickly turn around thou- federal help. says.q
about having to wait. significant impact on the
“I need to pay my electric economy. Slightly more
bill and the mortgage," than half of American
says Krista Kowalcyzk, workers are employed at
whose Southwest Florida businesses with 500 or few-
photography business has er employees. Every lost
come to a halt as wed- job means another person
dings have been canceled will struggle to pay rent or
and customers have de- other bills. Unpaid bills, in
cided against having por- turn, cut revenue for other
traits shot. businesses.
She feels somewhat reas- Layoffs are mounting, and
sured that she can receive most analysts forecast that
unemployment benefits. the economy will shrink sig-
But while she waits, “I am nificantly in the April-June
terrified that not only do I quarter, with some estimat-
have no revenue coming ing a a 30% annual plunge
in, I have also been asked for the quarter. That would
for thousands of dollars in be deepest economic
refunds." contraction for any quarter