Why you never received any money from the SBA’sPaycheck Protection Program (the PPP)
The PPP was designed to help small struggling businesses cover worker’s salaries and other essential expenses during the Corona virus pandemic. That was the theory to pay out a corona virus loan, but inreality, the cards were stacked against the small business owners from the start. The SBA selected a few large banks and put them in charge of the Paycheck Protection Program empowering them to make the SBA loan. The banks knew there was a limited amount of money and time and then all the money would be used up. On your marks get set GO!!!!
The banks quickly determined that selecting large customer companies that were already banking with them would provide more benefit to the banks. The number one reason was that helping these larger business customers with cash would help them pay back their loans to the banks. Another reason was that the banks were under strict time deadlines to get all of the Corona virus loans out. It was quicker, easier and less expensive to process 100 big loans than 10,000 small loans. The banks decided that they would worry about the smaller businessesthat had applied for loans either during a second round or maybe not at all.
Welcome to the reality of being a small business owner during a bad crisis and looking for SBA loan.