Small businesses need help more than ever. The coronavirus pandemic has wrought intense economic hardship for Main Street businesses across America. With the rapid spread of the disease and orders in many areas for nonessential businesses to close, there’s little they can do about it.
Luckily, the SBA and the federal government have stepped up to the plate to offer low-interest, potentially forgivable loans through the Paycheck Protection Program. Loan applications opened on April 3, 2020.
Due to overwhelming demand since applications opened, it’s anticipated that by the end of the week, the SBA will reach the $350 billion cap set for PPP loans. To meet the needs of small businesses in the US, the budget for PPP loans needs to be increased—and quickly.
Congress is debating an increase in allocated funds. Because we live in a democracy and we know that nothing speeds up the government like a little bit of external pressure, we’re providing you with everything you need to know to call your senator or representative and ask that the SBA get its act together.
What’s the Hold Up on PPP Loans?
Several factors are contributing to why borrowers may be waiting on PPP loans. The biggest challenge is that the amount appropriated for PPP loans 3 weeks ago has proved to be insufficient to meet the financial needs of American small businesses.
While $350 billion might have seemed sufficient 3 weeks ago, the coronavirus pandemic has swiftly evolved. With the US economy essentially ground to a halt, the vast majority of the country’s 30 billion small businesses have suffered from the coronavirus pandemic. If each small business in America received an equal share in the appropriated PPP loan funds, it would not be nearly enough.
Congress needs to increase funding for PPP loans and they need to do it quickly.
What Happens When You Call Your Senator or Representatives Office?
When you call your senator or representative’s office, a legislative assistant will answer the phone. You can choose to request a response, in which case the phone call will be longer because they will have to add you to the response database.
We recommend that you say that you do not need a response. It saves time, your call will be tallied, and then you can move on with your day.
Script for Calling Your Senator or Representative About SBA Coronavirus Loans
Here’s exactly what you can say when calling your senator or representative about PPP loans and the SBA:
“Hello, my name is [YOUR NAME]. I’m a constituent in [YOUR CITY OR TOWN], zip code [YOUR ZIP CODE]. I don’t need a response.
I am concerned about SBA funding limits for Paycheck Protection Program loans. Small businesses are the backbone of the economy, and I strongly encourage [SENATOR/REPRESENTATIVE NAME] to support a substantial increase in funding for PPP loans so that small businesses can access the capital they need to survive the pandemic. Thank you for your hard work!”
That’s it. That’s all you need to say.
Take It to Twitter
If you’ve been following our CEO, Brock Blake, lately, you know he hasn’t been shy about taking to Twitter to put pressure on the SBA and Treasury to fix what is broken in the PPP process. You can add your voice to the public pressure by tweeting your experience at the SBA and your senators or representatives to encourage them to increase funding for PPP loans.
We hope that the SBA will remedy this gridlock soon, and the more voices we have in this fight, the sooner that’s likely to happen.
While every effort is made to ensure the accuracy of information when a story is published, the coronavirus pandemic and Paycheck Protection Program (PPP) have caused details to change at a rapid pace. Additional guidance from the government may change or clarify certain aspects of the forgiveness process and could result in changes to the information contained in these pages. For the most up-to-date information, please visit the COVID-19 section of our website. For more information, you can call us at (855) 853-6346. Lendio is not responsible for and provides no warranty as to the accuracy of this content. Lendio does not provide legal, accounting or tax advice. The information and services Lendio provides should not be deemed a substitute for the advice of such professionals who can better address your specific concern and situation.