A loan program that was recently launched 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. If you’re an entrepreneur yourself, you might benefit from reading the experiences of these people.
Valerie Riley, the owner of LifeSquire, said that it was like everything turned inside out. Riley, whose assistant-services company has a total of 22 employees, was denied the funds in the initial phase of the $349 billion funding program created by the coronavirus relief law.
She said that her firm had had a horrible experience in the first round because once she finally 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 called Watermark Bank.
Judy Gatena, CEO of REP Digital, a video production company located in Nashville, described the experience as an emotional roller-coaster ride.
After failing at her first run through the Bank of America, Gatena managed to get the loan through Studio Bank, during the second phase of funding.
In sharing her experience, Gatena said that she was thankful after receiving the funds because she had employees who were dependent on her. She added that she had been self-financing their employment up to that point.
JPMorgan Chase denied providing assistance to Connecticut’s U.S. Park Pass during the first phase on the grounds of an incomplete application, as per Ivo Bottcher-Yu. It was in 2018 when he co-founded the four-person company.
Bottcher said that they applied for the loan to the best of their knowledge, yet Chase still deemed it lacking. He spoke to his accountants on the matter, and even they didn’t know what was required exactly.
After updating the documents, Chase submitted the second-round application for the business to the Small Business Administration. The following day, the $50,000 funds came. After a grueling six weeks of uncertainty, Bottcher was finally able to breathe.
Jenny Bradley, the proprietor of a law office called Triangle Smart Divorce, initially applied at the Fountainhead Commercial Capital for the funds she needed. After that, she went on to the second phase with lenders Kabbage and Lendio.
Lendio, an online loan marketplace, connected Bradley with the bank Blue Vine. The SBA approved her loan application and gave her a $105,000 advance the next night for her eight-man firm.
Bradley 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.