SAN FRANCISCO, Calif. (KRON) — The U.S. government’s emergency small business lending program is now out of money. The $349 billion paycheck protection program officially tapped out on Thursday.
Lawmakers predicted this would happen.
Financial experts say the vast majority of small businesses missed out on the paycheck protection funding.
A financial consultant explained to KRON4 why he thinks the vast majority of small businesses missed out of the paycheck protection funding, and offers advice on trying to prevent it from happening again.
“You can’t have 30 million businesses and only do funding for a million-two,” Stephen Mayer said. “That’s unacceptable.”
However, that is what happened to the $350 billion in the small business administration’s paycheck protection program.
If you are one of the businesses that applied but did not receive funding, Stephen Mayer of the accounting consulting wealth management firm, SD Mayer and Associates, explains some of the common reasons why.
“There are a number of banks who did not accept applications. There are a number of banks whose capital ran out because of a glitch in the system,” he said. “There are a number of banks who said we will take our customers first.”
Another hurdle — some banks requiring that you join up before being able to apply for paycheck protection funds.
“So that’s another thing you have to go through. You actually have to open an account to be able to upload the transaction,” Mayer said.
Then there is a mountain of paper work.
Add to that, Mayer says the playing field is not exactly even when you have major franchises going up against mom & pop shops applying for the same funding.
“It is true that size does matter. Each of these things creates confusion, frustration. It’s crazy,” Mayer said. “The ultimate small business, the corner store, your hair is on fire and you’re just trying to stay alive. You don’t have all of these assets.”
Having said all of that, he says he remains hopeful or else his firm would not be assisting close to 200 small businesses get ready for the next round of funding.
“I believe that congress at the end of the day with do the right thing and appropriate more money,” he said.
His advice? Make sure when that happens you have your business documents in order or risk missing out again.
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