“Most businesses don’t have existing relationships with banks,” said John Arensmeyer, founder and CEO of the Small Business Majority. “They have a checking account relationship, maybe a payroll relationship, but they don’t get loans,” he said, adding that very small companies typically borrow using small business credit cards. “All these tiny businesses out there don’t have these great banking relationships they can turn to.”
Small Business News
Chip taks to Candace Combs, co-owner of InSymetry Spa in San Francisco about how convoluted it is to get help under the new federal stimulus law.
“Right now we’re living in a nightmare. This is definitely our worst nightmare. What we’re really looking for from the government is help and it doesn’t feel like we’re getting it.”
But the spread of Covid-19, the disease caused by the new coronavirus, and resultant social distancing orders and business closures means “business as usual isn’t going to cut it right now,” David Chase, vice president of national outreach for small business advocacy group Small Business Majority, said in an interview. Cases are arising where employees can’t qualify for a small group health insurance plan because too many have been laid off or those that remain work too few hours, he said.
The Small Business Majority, which advocates for small firms, had unsuccessfully sought $250 billion in direct grants and $250 billion in loans. John Arensmeyer, the group’s founder and chief executive officer, said the package Congress passed isn’t big enough and won’t get firms the money they need quickly enough.
John Arensmeyer, CEO of Small Business Majority, a small business research and advocacy organization, told Salon what was passed was "better than nothing."
"But we think it's not going to be sufficient, and we're going to need to get more done," he said. "We would have liked to see a lot of money in grants, as well as loans, because that's all small businesses need right now, and instead we got this somewhat convoluted program."
"We think it’s great that there are services to deliver food, but they are going to have to do it in a way that allows the restaurants and businesses to still make money,” said John Arensmeyer, the founder and CEO of Small Business Majority, a group that advocates on behalf of small businesses.
Mark Herbert, the California Vice President for Small Business Majority, a San Francisco-based small business advocacy organization, said wineries with growing grapevines are generally considered to be farms or agribusiness, which aren't covered by these loans. The U.S. Department of Agriculture, Herbert said, has separate programs that may be more applicable.
Beyond these efforts rolled out by eBay for Charity, the eBay Foundation also announced a $2 million grant investment in organizations supporting small businesses and coronavirus (COVID-19) relief efforts, including Alice, the Opportunity Fund, Small Business Majority, and Silicon Valley Community Foundation’s COVID-19 Regional Response Fund and Regional Nonprofit Emergency Fund.
Those interested in the PPP who already have an established business account with a lender are advised to contact them immediately, said Xiomara Pena, program director with Small Business Majority.
John Arensmeyer, CEO del grupo de defensa Small Business Majority, dice que le preocupa que los préstamos se procesen a través del programa tradicional de préstamos comerciales de la SBA, que depende de los bancos para manejar las solicitudes iniciales.
“Los bancos tienen que adaptar su tecnología para hacer esto”, dice Arensmeyer. “Va a pasar meses antes de que este dinero salga a la luz. ¿Cuántas personas podrán mantener la nómina con la esperanza de obtener este dinero?