There are trillions of dollars coming to help business owners get to the other side of the coronavirus crisis, but getting that cash into circulation has proven a challenge as banks grapple with a crush of clients.
“It’s like the federal government is driving a train through the neighborhood shoveling cash off the side and you have to be there with your bucket to catch some,” said Tai Federico, a veterinarian and owner of Riverview Animal Hospital. “The trouble is, they’re not going to tell you when the train’s coming through.”
When applications opened on April 3, Federico attempted for hours to apply online for the Paycheck Protection Program, which doles out forgivable federal loans to cover payroll and other costs to keep people employed during this crisis. But the bank’s website kept crashing, so Federico finally made an appointment and went to apply in person a few days later.
“I know that what’s supposed to happen is we’re supposed to be approved for the loan, I think, and sign for it and then the money’s deposited,” he said. “I don’t know when.”
Millions of small businesses are expected to apply for loans from the $349 billion Paycheck Protection Program. Banks have been scrambling to simultaneously move to a work-from-home model and set up their systems to handle an onslaught of loan applications, said Wade Peery, chief administrative officer for FirstBank.