Colorado small businesses that missed first round of federal coronavirus relief anxiously queue up again
As another $310 billion in forgivable Small Business Administration loans open up, confusion continues to reign.
By the time The Bluegrass Lounge in Arvada was allowed to apply for one of those potentially forgivable pandemic loans through its regular bank, the $349 billion federal program was nearly depleted. The fund ran out of money two days later, without Bluegrass Lounge getting very far.
On Monday, the restaurant tried again, but this time it was prepared. It had found a new lender who had prepared an application before the federal Paycheck Protection Program reopened with an additional $310 billion made available by Congress for the small business loans.
“We are in the queue,” said a hopeful Joshua Schwartz, manager of the bourbon bar, on Monday. “We were also prioritized and told we would be one of the first from A10 Capital to get funded. So hopefully we’ll be seeing some funding soon.”
Small businesses, banks and lenders have learned a lot during the two weeks of chaos that kicked off the first round of paycheck loans on April 3. The much sought-after loan, which will be forgiven by the federal government if most of the money is used for payroll, saw some of the application and forgiveness rules change nearly daily — including after the money was maxed out on April 16. Many small companies said they were unable to get their bank’s attention or find a bank that would work with them.
“After the first round, it was obviously eye opening,” Schwartz said in an interview last week.
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