More help may soon be on the way for small business owners around the country, with the House expected to vote Thursday on a $484-billion relief package the Senate passed Tuesday. The $349 billion that was originally allocated for emergency aid to small businesses quickly ran out of funding after it received an onslaught of applications, which initially crashed the system.
The new bill includes more than $300 billion earmarked for that program — money many small businesses applied for but did not receive the first time around. Among those business owners is Nicola Williams, president of Cambridge-based marketing and event planning firm, The Williams Agency.
She told Jim Braude on WGBH News’ Greater Boston Wednesday that she felt like she did everything right with her local bank, Cambridge Savings Bank.
“I reached out early just to make sure I had my stuff in order," she said. "I applied early, April 6 — as soon as our bank was able to accept an application. I kept in touch, I followed up like a business owner should. And as soon as I heard the money ran out, I checked in again and found out my application wasn’t awarded a loan."
As a result, she said she’s had to cut her employees’ hours by 20 percent.
“A lot of non-profits rely on us. A lot of businesses rely on us because ... they make money from these events. So, a lot of people are leaning on me and depending on me," she said. "It’s going to take a village to get through this."
But for the other business owners she knows, it’s been a mixed bag.
“At least one business that I know that banks with the same bank received funding — they’re much bigger than mine,” she said. “Some of my other colleagues from the area, one chose… to get his loan from Utah and he was successful. ... Others haven’t, some of the smaller companies, like mine,” she said.
A recent Associated Press investigation revealed that some of the small business loans distributed went to companies with market values well over $100 million, including national chains like Potbelly and Ruth’s Chris Steakhouse.
“[The program] was not supposed to be intended for those types of businesses, for franchises who have access to other resources," Williams said. "It was really intended for the main street businesses, mom and pop, small businesses that don’t have access."
"Don’t forget, these institutions, they make a commission," she added. "So, for some, it was a good business decision to choose to shuffle those applications and choose the ones that will give them the greatest return.”
Still though, Williams remains hopeful that her business will survive, just like it did during the 2008 recession.
“I am quite resilient. Entrepreneurs of color and women, we can pivot. We learn how to pivot, so that’s what I’ll do," she said. "We will have to bootstrap and reinvent ourselves during this time. And hold on for dear life."
WGBH News received this statement from Cambridge Savings Bank after the taping of the show:
"While we wish we could have supported all of our customers that wanted to participate in the Paycheck Protection Program (PPP), unfortunately, the CARES Act funding was limited. We’re hopeful that Congress will soon finalize a new round of funding for the Program. That will enable CSB to submit applications to the Small Business Association (SBA) that were in queue before the program closed, including Ms. Williams, and with the added funding for community banks, we are hopeful that this program can support more small businesses in need. While we do expect the CARES Act funding to go quickly, every customer in queue will receive contact from CSB on whether their loan application was accepted by SBA or if the government funding was no longer available for their PPP loan. Our customers financial well-being is of utmost priority, and beyond the PPP, Cambridge Savings Bank has other relief programs in place that may also be beneficial during this unprecedented time."
