Chicago's Small Business Owners Wait For Help From The City 'Expenses Piling Up'
CHICAGO (CBS) -- Small businesses said the city of Chicago's emergency loan package comes up short.
CBS 2's Vince Gerasole reports from Pilsen on how the city is working to prioritize who gets money first.
The site went online last Tuesday, and the money has yet to flow, in part because the city is making sure those who need the funding most getting and that the funds are spread throughout the city.
As brushes sit still and chairs sit empty, the silence is almost deafening at Pilsen's A Salon.
"We have no income coming in right now and a ton of expenses piling up," said Rudy Moser of A Salon. "It's brutal for us."
With eight stylists furloughed, owner Rudy Moser applied for the city's Small Business Resiliency Fund when it came online last Tuesday.
"The portal opened up and I applied in 13 minutes," Moser said.
At Ground Up Coffee in Greektown, owner Alexander Theoharis applied within hours too, but he's still waiting to hear back.
"The impact has been massive," Theoharis said. "It's been over a week. I suspect there's been a flood of applicants tying up the whole process," Theoharis said.
He's right.
The city's Small Business Resiliency Fund totals $100 million. It provides emergency loans of up to $50,000 to businesses with 50 employees or fewer, with 50% going to payroll. Around 6,500 have applied for their share.
"There is no question that the demand of what small businesses are seeking is much greater than the supply of funds," said Brad McConnell, the CEO of Accion. The nonprofit spearheading the application process.
McConnell said the city is verifying business licenses, verifying bank accounts and factoring in geographic locations to make sure the funds are equitably spread out to businesses in all neighborhoods.
"It has been predictably overwhelming. The need is great," he said.
Late Wednesday, for Rudy Moser in his inbox, a sign of hope. His application cleared the city's debt check.
"It is a lot of pressure relieved, but I cant wait until the next step," Moser said.
The city said checks could be cut by the end of this week.
