Coronavirus in California: More than 112,000 small business loans approved in California before federal funding runs out

REDWOOD CITY, Calif. (KGO) – Small businesses should be able to get help from federal funding through the Paycheck Protection Program or (PPP). But, with no money, small businesses in the Bay Area are forced to rely on the Economic Disaster Lending (EIDL) to make ends meet amid the coronavirus pandemic.

“We never had to shut down the business,” said Vicki Marchant, owner of Hoot Judkins Furniture in Redwood City. “This is the first time in 55 years that we have to close the company.”

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Marchant applied for an EIDL after struggling to apply for the Paycheck Protection Program. She waited 28 days before being approved.

“We were in such a bad shape, we feel absolutely relieved now,” said Marchant, who is one of 2,100 small business owners in California who have been approved for an EIDL.

Unlike Matt-Feldman Romero, a daycare owner in Daly City.

“We have been forced to lay off 75% of our staff,” he said.

Feldman-Romero has already been refused a PPP loan through a bank. He tried to reapply through another lender, but has not yet received a response.

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“I find it difficult to pay my employees,” he said. “It was really hard to wait without any response.”

With the federal loan program now without funding, Feldman-Romero hopes his loan is still being processed.

Joe Field, the owner of a Concord-based comic book store, isn’t so lucky.

“Right there on my screen is the latest email from Wells Fargo,” he said, pointing to a note that he would not be eligible for funding. “There is no more money … we have been excluded.”

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Field is in the same position as the hundreds of thousands of small business owners who must now reapply if additional federal funding is approved.

ABC7 spoke with SBA SF Regional Director Julie Clowes.

“Should small business owners who haven’t heard from their bank yet automatically reapply?” Or, what’s the next step for them? Asked Stephanie Sierra of ABC7.

“For any borrower who has applied for the PPP loan from their lender and has not received a message… please contact them. Find out where you are with their internal processing,” Clowes said.

“Is there still a chance that their loan will be processed?” Sierra asked.

“Yes, the bank could have processed a lot of them and put them into our system and now goes back to contacting these borrowers and informing them,” Clowes said.

The latest additional stimulus package to support small businesses is expected to add an additional $ 250 billion to the paycheck protection program. An additional $ 120 billion is planned for EIDL and minority-owned businesses. Congress leaders expect a final vote by the end of this week.

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