'Loan Money Runs Out While Small-Business Owners Wait in Line' diff viewer (11/12)

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Loan Money Runs Out While Small-Business Owners Wait in Line	Loan Money Runs Out While Small-Business Owners Wait in Line
2020-06-17 01:11:23 UTC	2020-06-17 14:26:38 UTC (about 13 hours later)
The $349 billion government program meant to keep small businesses afloat during the pandemic and economic meltdown ran out of money on Thursday — even as many small-business owners were desperately trying to apply for loans. Now they are trying to figure out how to keep their businesses alive while Congress negotiates the possible release of additional rescue funds.	The $349 billion government program meant to keep small businesses afloat during the pandemic and economic meltdown ran out of money on Thursday — even as many small-business owners were desperately trying to apply for loans. Now they are trying to figure out how to keep their businesses alive while Congress negotiates the possible release of additional rescue funds.
The program, administered by the Small Business Administration through participating banks, was marred by technical glitches from the start, even as overwhelming demand and confusion about how it would all work slowed down the approval process. Around the country, would-be borrowers were turned away by banks because there were too many applicants. Some lost valuable time because their bankers didn’t know all the details about how the program would work, while others couldn’t find a lender that would deal with them.	The program, administered by the Small Business Administration through participating banks, was marred by technical glitches from the start, even as overwhelming demand and confusion about how it would all work slowed down the approval process. Around the country, would-be borrowers were turned away by banks because there were too many applicants. Some lost valuable time because their bankers didn’t know all the details about how the program would work, while others couldn’t find a lender that would deal with them.
Doug Martin, a sports marketer in Long Beach, Calif., approached three banks to try to get a loan through the program. Each turned him down for different reasons. As a last resort, he tried a fourth bank with the help of his financial adviser, but didn’t hear back.	Doug Martin, a sports marketer in Long Beach, Calif., approached three banks to try to get a loan through the program. Each turned him down for different reasons. As a last resort, he tried a fourth bank with the help of his financial adviser, but didn’t hear back.
“This morning I read that the money’s gone, and I’m like, heck, I didn’t even get a shot at this,” Mr. Martin said.	“This morning I read that the money’s gone, and I’m like, heck, I didn’t even get a shot at this,” Mr. Martin said.
More money is expected to come, but when is an open question. Congressional leaders and the Trump administration are discussing adding hundreds of billions of dollars to replenish the program, but have failed to reach an agreement. On Thursday, staff of the Democratic leadership held talks with Treasury staff about ways to break the impasse, but Senator Mitch McConnell, the majority leader, said no progress had been made, and he adjourned the Senate until next week.	More money is expected to come, but when is an open question. Congressional leaders and the Trump administration are discussing adding hundreds of billions of dollars to replenish the program, but have failed to reach an agreement. On Thursday, staff of the Democratic leadership held talks with Treasury staff about ways to break the impasse, but Senator Mitch McConnell, the majority leader, said no progress had been made, and he adjourned the Senate until next week.
Mr. Martin, an independent contractor who is eligible for the loans, said his business had dried up when conditions on the West Coast began to deteriorate in early March. When the relief program started, he began reaching out to banks.	Mr. Martin, an independent contractor who is eligible for the loans, said his business had dried up when conditions on the West Coast began to deteriorate in early March. When the relief program started, he began reaching out to banks.
He first tried Wells Fargo, where he has an account, but said the bank never responded to his request for an application. Next Mr. Martin tried US Bank, which told him that it could not handle his application because he was a customer of Wells Fargo, he said. So he asked a smaller bank, CommerceWest, for help. It, too, turned him down because he wasn’t a customer. Finally, he sought help from his financial adviser, who told him that he would try to get an application to a lender working with Morgan Stanley. But there was radio silence.	He first tried Wells Fargo, where he has an account, but said the bank never responded to his request for an application. Next Mr. Martin tried US Bank, which told him that it could not handle his application because he was a customer of Wells Fargo, he said. So he asked a smaller bank, CommerceWest, for help. It, too, turned him down because he wasn’t a customer. Finally, he sought help from his financial adviser, who told him that he would try to get an application to a lender working with Morgan Stanley. But there was radio silence.
Wells Fargo required applicants to have a business checking account, said Catherine Pulley, a spokeswoman for the bank. Mr. Martin said he had a business line of credit at the bank but not a separate business checking account. A US Bank spokesman said the lender would process customers’ applications before looking at noncustomers. The chief executive of CommerceWest did not respond to a request for comment.	Wells Fargo required applicants to have a business checking account, said Catherine Pulley, a spokeswoman for the bank. Mr. Martin said he had a business line of credit at the bank but not a separate business checking account. A US Bank spokesman said the lender would process customers’ applications before looking at noncustomers. The chief executive of CommerceWest did not respond to a request for comment.
Banks participating in the loan program were given wide discretion over who to lend to, and many chose only to lend to businesses they had existing relationships with. That left many small business owners — including those in minority and underserved communities — unable to borrow because they didn’t have prior ties to a lender or didn’t have a strong enough relationship with their existing lender. Many of the participating banks say they are still processing enormous backlogs of requests from their own customers and cannot begin to take on brand-new borrowers until those backlogs ease.	Banks participating in the loan program were given wide discretion over who to lend to, and many chose only to lend to businesses they had existing relationships with. That left many small business owners — including those in minority and underserved communities — unable to borrow because they didn’t have prior ties to a lender or didn’t have a strong enough relationship with their existing lender. Many of the participating banks say they are still processing enormous backlogs of requests from their own customers and cannot begin to take on brand-new borrowers until those backlogs ease.
Foreign businesses and even large restaurant chains — which successfully lobbied for an exemption to a rule restricting the program to businesses with 500 or fewer employees — have managed to get loans, showing the uneven way in which the program has been carried out.	Foreign businesses and even large restaurant chains — which successfully lobbied for an exemption to a rule restricting the program to businesses with 500 or fewer employees — have managed to get loans, showing the uneven way in which the program has been carried out.
Potbelly Sandwich Shop, a chain of 400 restaurants, disclosed in a filing that it got $10 million under the program from JPMorgan Chase. Wave Life Sciences, a biotech company incorporated in Singapore, secured $7.2 million from the program, according to a filing. A company spokeswoman, Alicia Suter, said the pandemic “makes it difficult to predict or plan for potential impacts to ongoing and planned business activities and operations.” She said 97 percent of the company’s work force was based in the United States.	Potbelly Sandwich Shop, a chain of 400 restaurants, disclosed in a filing that it got $10 million under the program from JPMorgan Chase. Wave Life Sciences, a biotech company incorporated in Singapore, secured $7.2 million from the program, according to a filing. A company spokeswoman, Alicia Suter, said the pandemic “makes it difficult to predict or plan for potential impacts to ongoing and planned business activities and operations.” She said 97 percent of the company’s work force was based in the United States.
Of course, hundreds of thousands of borrowers have been approved for, or received, aid under the so-called Paycheck Protection Program, which was meant to give small businesses loans that would be forgiven if they were used to pay employees, rent or mortgage principal. Federal officials tried to get the aid operation up and running as quickly as possible knowing that small businesses were under extreme pressure and could fold if the rollout was slow.	Of course, hundreds of thousands of borrowers have been approved for, or received, aid under the so-called Paycheck Protection Program, which was meant to give small businesses loans that would be forgiven if they were used to pay employees, rent or mortgage principal. Federal officials tried to get the aid operation up and running as quickly as possible knowing that small businesses were under extreme pressure and could fold if the rollout was slow.
But that created confusion.	But that created confusion.
Hari Singh, the owner of CrossFit NYC, which has two gyms in Manhattan that together cost $100,000 in monthly rent, thought he was doing everything he needed to do to get help through the program. On March 28, five days before its official launch, he asked his banker at his Citigroup branch, where he had been a customer for 40 years, how to apply. The banker seemed at first not to know the details of the program, Mr. Singh said, but later assured him that as soon as Citi began accepting applications, his would be considered.	Hari Singh, the owner of CrossFit NYC, which has two gyms in Manhattan that together cost $100,000 in monthly rent, thought he was doing everything he needed to do to get help through the program. On March 28, five days before its official launch, he asked his banker at his Citigroup branch, where he had been a customer for 40 years, how to apply. The banker seemed at first not to know the details of the program, Mr. Singh said, but later assured him that as soon as Citi began accepting applications, his would be considered.
Mr. Singh calculated that he needed at least $200,000 from the program to pay rent and the employees he had not laid off when New York ordered all nonessential businesses to close. He checked in with the bank every day, and every day he was told to wait.	Mr. Singh calculated that he needed at least $200,000 from the program to pay rent and the employees he had not laid off when New York ordered all nonessential businesses to close. He checked in with the bank every day, and every day he was told to wait.
“There is not 24 hours that I didn’t email or text someone at Citibank,” Mr. Singh said. While he waited, he studied up on the loan program and considered applying through other banks. He participated in a webinar hosted by Newsday, during which a representative from the Small Business Administration warned owners not to file two loan applications at once.	“There is not 24 hours that I didn’t email or text someone at Citibank,” Mr. Singh said. While he waited, he studied up on the loan program and considered applying through other banks. He participated in a webinar hosted by Newsday, during which a representative from the Small Business Administration warned owners not to file two loan applications at once.
Mr. Singh grew nervous. The days were ticking by. A law firm he had dealt with in the past offered to help expedite his application for a fee: 1 percent of his loan money or $5,000, whichever amount was higher. He refused.	Mr. Singh grew nervous. The days were ticking by. A law firm he had dealt with in the past offered to help expedite his application for a fee: 1 percent of his loan money or $5,000, whichever amount was higher. He refused.
As of Thursday, when the program ran out of money, Mr. Singh had been allowed to submit only a preliminary request for a loan through Citi’s website.	As of Thursday, when the program ran out of money, Mr. Singh had been allowed to submit only a preliminary request for a loan through Citi’s website.
Updated June 16, 2020	Updated June 16, 2020
	The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth.
The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.	The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.	So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.	Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.	A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.	The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.	Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.	States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.	Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)	If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.	Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.	The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.	If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.	If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
“Looking back, if I had just paid the $5,000, I would have a loan now,” he said.	“Looking back, if I had just paid the $5,000, I would have a loan now,” he said.
Other small-business owners didn’t get as far. Dr. Nancy Kim, who owns Spectrum Dermatology, a practice with 130 employees in Scottsdale, Ariz., tried to get a $2.2 million loan, but her bank, Wells Fargo, told her that there was a long line ahead of her and that she would have to wait. Her turn never came. She tried eight other lenders, and all but one turned her away. Eventually, the one that accepted her application stopped communicating.	Other small-business owners didn’t get as far. Dr. Nancy Kim, who owns Spectrum Dermatology, a practice with 130 employees in Scottsdale, Ariz., tried to get a $2.2 million loan, but her bank, Wells Fargo, told her that there was a long line ahead of her and that she would have to wait. Her turn never came. She tried eight other lenders, and all but one turned her away. Eventually, the one that accepted her application stopped communicating.
Ms. Pulley said Wells Fargo was continuing to contact customers in the order that their preliminary loan requests had been received. “We will continue to prepare applications in our existing pipeline from small and midsize businesses and will submit them to the S.B.A. when funds become available,” she said, adding that she could not comment on specific customers’ cases.	Ms. Pulley said Wells Fargo was continuing to contact customers in the order that their preliminary loan requests had been received. “We will continue to prepare applications in our existing pipeline from small and midsize businesses and will submit them to the S.B.A. when funds become available,” she said, adding that she could not comment on specific customers’ cases.
Business has dropped 80 percent in the meantime, and Dr. Kim’s husband, Dr. Rajan Bhatt, who helps manage the practice, calculated that they would run out of money to pay employees before the end of May.	Business has dropped 80 percent in the meantime, and Dr. Kim’s husband, Dr. Rajan Bhatt, who helps manage the practice, calculated that they would run out of money to pay employees before the end of May.
“We lost valuable time in applying for the loan,” Dr. Bhatt said. “If we had applied at the same time as the rest of the country, maybe we would have gotten funded.”	“We lost valuable time in applying for the loan,” Dr. Bhatt said. “If we had applied at the same time as the rest of the country, maybe we would have gotten funded.”