Although the federal government has embraced a significant economic and fiscal response to the economic crisis caused by the COVID-19 pandemic through the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the roll-out of the small business relief support programs created to help keep Americans paid through the crisis has so far left business owners (and their employees) wanting. 

A recent The Wall Street Journal report finds that “small-business owners who have applied for federally guaranteed loans to keep them afloat during the coronavirus pandemic are still largely waiting for the money.” WSJ adds that even as the scope of the $350 billion Paycheck Protection Program (PPP) has expanded to include people who are self-employed and those who operate as independent contractors, many of the businesses that initially applied for the funds when the program launched last week have yet to receive any money. It appears, according to various reports, that many banks have been slow to process PPP loan applications due to a need for additional guidance from theTreasury Department, though some are moving forward with the processing despite not having those additional details.

To help keep track on these loans, Miami-based small business owners Duncan and Rita MacDonald-Korth have launched a website designed to track the disbursement of these funds to small businesses.

One reason for the slow turn-around time is that the applicants for these funds, which are being dispersed through traditional banking institutions, have come under extra scrutiny, with many noting that most banks are only lending to customers with existing loan or credit accounts. 

To help find suitable banks, the Small Business Administration (SBA) has launched a search tool to help small businesses find potential lenders, though there is no guarantee these lenders will approve (or even allow business owners to submit) loan applications. Experts suggest reaching out to familiar banking institutions or to some of the smaller local banks operating across the country.

The Los Angeles Times reports, for example, that “Small businesses that have never been vetted for a loan, or that don’t already have an account at an SBA-approved lender will face long delays,” adding that banks will need to parse through “past cash needs, [confirm] their corporate structures, and [verify] the identities of their owners.”

According to the directives issued by the United States Treasury, businesses can sign up for PPP loans through any lending institution already approved by the government’s SBA 7(a) lending program and through any other “federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating,” Forbes reports.

Vox reports, experts also “advise businesses to contact their local Small Business Development Center, Women’s Business Center, or SCORE, which all include experts who will provide free guidance via phone.”

Another reason for the delay is that the SBA is simply overwhelmed with the response from the business community. According to The New York Times, “The Small Business Administration, lightly staffed and working with aging technology, has been caught unprepared for the onrush of demand from desperate small-business owners who urgently need these loans as the coronavirus stalls the economy.” 

Reports that demand for the funds has already outstripped the available supply were confirmed Thursday morning as SBA officials put out a new series of statements stating: “The SBA is currently unable to accept new applications for the Paycheck Protection Program based on available appropriations funding," adding, “Similarly, we are unable to enroll new PPP lenders at this time,” CNN reports. 

Additionally, the department explains that "Once the authorization limit is reached, SBA will not be able to accept any new applications for the Paycheck Protection Program.”  

"SBA is unable to maintain a queue for PPP applications,” the statement read finally. 

Aside from PPP, several other federally-backed initiatives are on offer, including the Employee Retention Tax Credit from the Internal Revenue Service. 

In addition, the federal government recently launched the Main Street Lending Program, an initiative aimed at bolstering the PPP and other federally-backed economic emergency initiatives with an additional $600 billion in emergency loans for small- and medium-sized businesses.

Have you applied for any of the federal relief programs? If so, please fill out the survey below to share your experiences. Archinect will collect responses into forthcoming articles probing the ways in which the architecture community is grappling with the COVID-19 economic situation.