Coronavirus Economy: Small Business Owners Claim 'System Is Very Broken' As Federal Loans Still Hard To Get
CAMDEN, N.J. (CBS) -- During the coronavirus pandemic, business owners are still finding it hard to get federal loans despite Congress approving additional money. The Small Business Administration says its computer system is overwhelmed with applications, while business owners say they're running out of time and patience.
"It is cumbersome, it is vague. The language is erroneous and it keeps changing," Daniela LoPresti, owner of The Miracle-Ear, said.
The "it" LoPresti is referring to is the Paycheck Protection Program.
LoPresti owns nine Miracle-Ear franchises in five different states. She applied over a month ago and just received part of the loan on Tuesday.
"I have never worked on a project this difficult in my entire life," LoPresti said.
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"I applied for everything I possibly could with the help of my accountant and I have yet to see anything come in from that," Andrea Ranno, owner of The Paper Trail, said.
Ranno owns the Paper Trail in Haddonfield, New Jersey, and to survive, the stationary store has now started the Rainbows of Hope initiative, decorating people's front porches with balloons.
She says the process isn't working.
"I find the whole process very unfair and the system, very broken," Ranno said.
Delaware Sen. Chris Coons and New Jersey Sen. Cory Booker are urging the Federal Reserve to unclog the system. They're asking for certified community development organizations to be allowed to borrow and distribute money.
Dawn Lucas owns the Gentle Giant Cafe in Pitman, New Jersey. She also hasn't received federal loans.
"We're kind of looking to our government to say a little bit of money would go a long way with many of us, or all of us," Lucas said.
To further complicate things for businesses, the $80 billion Economic Injury Disaster Loan Program is no longer accepting new applications. That program was to help with expenses like rent and utilities.