A loan program that was launched last week to provide forgivable loans to small businesses has been proven to be less chaotic in the second phase, as indicated by some entrepreneurs who managed to receive funds from the program.
Valerie Riley, the owner of Life Squire, said that it was like everything turned inside out. Riley, whose assistant-services company has in total 22 employees, was denied the funds in the initial phase of the $349 billion funding program.
She said that her firm had had a horrible experience in the first round because when she managed to compile all the documents needed to apply for the loan, the cash ran out from the bank. Riley dealt with the application procedure herself in the second round and grabbed $140,000 within a day after applying for the loan at a local bank.
Judy Gatena, CEO of REP Digital, a video production company located in Nashville, described the experience to be an enthusiastic thrill ride.
Gatena managed to get the loan through Studio Bank, during the second phase of funding after failing in the first run through Bank of America. She shared her experience and said that she felt content after receiving the funds because she had employees who were dependent on her. Gatena added that till now, she has been self-financing their work.
JPMorgan Chase denied providing assistance to U.S Park Pass, Connecticut, in the initial phase on the grounds of an incomplete application, as indicated by Ivo Bottcher-Yu, who is the co-founder of the four –Person Company.
Bottcher said that they applied for the loan while providing all the details they knew, but Chase esteemed it lacking. He said that he also spoke to his accountants on the matter, as no one knew exactly what was required. Then again, Bottcher applied for assistance with refreshed documentation and managed to receive funds amounting to $50,000.
Jenny Bradley, the proprietor of a law office Triangle Smart Divorce, North Carolina, applied for the funds, with three lenders in the second phase including Kabbage, Lendio, and Fountainhead Commercial Capital.
Lendio, an online loan marketplace, coordinated Bradley with the bank Blue Vine. The SBA approved her loan application and gave her an advance of $105,000 by the next night for the eight-man firm.
She shared her thoughts on the whole matter and said that what changed in the second round was that she decided not to put all of her eggs in a single basket and cast her net broader.