Small Business Loans Website Crashes After ‘High Volume Of Applications’

Thousands of small California businesses are on the verge of failure – and in desperate need of quick federal government cash to stay alive. But it turns out that many loan applications were put on hold when government computers broke. One of those struggling businesses is the Chill-N-Go in Rancho Cordova, where they were making face masks on Thursday. It’s very different from the cooler wine bags they normally make, but for now, it’s the only way to stay afloat. “We’ve laid off pretty much our entire workforce,” said Bill Estberg, owner of Chill-N-Go. Estberg is looking for cash – so he applied for $ 190,000 in loans from the Small Business Administration. “The main thing here for me is survival,” Estberg said. “It’s a 43-year-old company. Many of these people have been here for over 30 years. Estberg received a $ 10,000 grant from the SBA, but he received little progress on the nearly $ 200,000 in loans he applied for. Small independent businesses need capital to survive, but getting the loans processed and approved by the Small Business Administration has been a headache for many. “There is a deadlock,” said John Kabateck, California director of the National Federation of Independent Business. Kabateck added that it was “a problematic blockade for small businesses who want to get the loans they need and get them today.” shutting down and sending their employees home because they can’t survive, “he said. Many small businesses have closed because of the coronavirus. And this week a number of banks have had big problems logging into the SBA website. “not entering,” said Virginia Vareal, CEO of Golden Pacific Bank in Sacramento. “It kept crashing and crashing all morning,” Vareal said . “We couldn’t get in. We were only able to process one loan of the hundreds – and I found out that was pretty much the story of bankers across the United States.” Miryam Barajas said, Regional Director of Communications for Small Business Administrati at. “And we have made some changes to the database that processes these loans. added. The SBA also” limited access last night to the database to only our very small lenders – those with $ 1 billion in assets or less, “Barajas said. She added that the move was made,” so that their businesses have access to these loans. “The SBA has made millions of dollars in loans,” Barajas told KCRA 3. “As of Wednesday evening, we had about 960,000 applications approved under the second cycle of the Paycheck Protection Program. With that, we have almost $ 90 billion that has been approved for loan, ”Barajas said. “In 60 days, I’m really going to start wondering if this is working at all. The Small Business Administration is still processing some $ 220 billion in loan applications under the second round of the Paycheck Protection Program. Barajas advised companies to check with their lender if they haven’t heard from the SBA yet.

Thousands of small California businesses are on the verge of failure – and in desperate need of quick federal government cash to stay alive.

But it turns out that many loan applications were put on hold when government computers broke.

One of those struggling businesses is the Chill-N-Go in Rancho Cordova, where they were making face masks on Thursday. It’s very different from the cooler wine bags they normally make, but for now, it’s the only way to stay afloat.

“We’ve laid off pretty much our entire workforce,” said Bill Estberg, owner of Chill-N-Go.

Estberg is looking for money – so he applied for $ 190,000 in loans from the Small Business Administration.

“The bottom line here for me is survival,” Estberg said. “It’s a 43-year-old company. Many of these people have been here for over 30 years.

Estberg received a $ 10,000 grant from the SBA, but he made little progress on the nearly $ 200,000 in loans he applied for.

Small independent businesses need capital to survive, but getting loans processed and approved by the Small Business Administration has been a headache for many.

“There is a deadlock,” said John Kabateck, California director of the National Federation of Independent Business.

Kabateck added that it was a “problematic traffic jam for small businesses who want to get the loans they need and get them today.”

“Fifty percent of our members have said that within a month or two, they will be gone. They will close their doors and send their employees home because they cannot survive, ”he said.

Many small businesses have closed because of the coronavirus. And this week, a number of banks have had major problems logging into the SBA website.

“They couldn’t get in,” said Virginia Vareal, managing director of Golden Pacific Bank in Sacramento.

“It kept crashing and crashing all morning,” Vareal said. “We couldn’t get in. We were only able to process one loan out of hundreds – and we found out that was pretty much the story of bankers across the United States. “

So what went wrong at the SBA?

“As you can imagine, a large number of applications were received from day one,” said Miryam Barajas, regional director of communications for the Small Business Administration. “And we made some changes to the database that processes these loans. “

“And so, for example, one thing we did is create a pacing mechanism so that all lenders can access information at the same pace,” Barajas added.

The SBA also “limited access to the database last night to our very small lenders – those with $ 1 billion in assets or less,” Barajas said. She added that the move had been made, “so that their businesses have access to these loans.”

The SBA has made millions of dollars in loans, Barajas told KCRA 3. “As of Wednesday evening, we had about 960,000 applications approved under the second cycle of the Paycheck Protection Program. With that, we have almost $ 90 billion that has been approved for loan, ”Barajas said.

Barajas told KCRA 3 that the IT issues are now fully resolved, but Bill Estberg is still on hold.

“I’m going to start to get more nervous in 30 days,” Estberg said. “In 60 days, I’m really going to start wondering if this is working at all.”

The Small Business Administration is still processing some $ 220 billion in loan applications under the second round of the Paycheck Protection Program. Barajas advised companies to check with their lender if they haven’t heard from the SBA yet.


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