How a Small Business Owner Got the Paycheck Protection Program Loan
Source: Fabian Videla
“People started canceling business meetings,” said Videla, 49. “Current customers were concerned about leaving crews in their homes. All of a sudden it was a massive shutdown.”
Soon he didn’t know how he was going to cover the payroll of his six workers. “We have older employees – they need the income,” Videla said. “If they lose this job, it will be difficult to find someone to hire you at 67.”
Then came a glimmer of hope: in the government’s $ 2 trillion stimulus package, $ 349 billion has been earmarked for forgivable loans to small businesses to keep their employees paid during the public health crisis. Videla pulled up in front of her computer at 3 a.m. on April 3, when banks began accepting loan applications for the Paycheck Protection Program.
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“It was stressful,” he said. “I continued to refresh the page.”
He was right to be stressed.
With millions of small businesses across the country vying for help, the pot of money dried up in less than two weeks. Hundreds of thousands of restaurants, salons, law firms and other businesses across the country have lined up or been excluded from the program entirely because they I can’t find a bank who will grant them the loan.
Videla was one of the lucky small business owners to get approved, and her $ 60,000 loan should keep her employees paid for the next two months. Now that Congress has authorized $ 310 billion more for the program, CNBC asked Videla for her advice from other small business owners trying to get relief.
“Be prepared,” said Videla, who was born in Argentina and moved to the United States in 2000.
On the afternoon of April 3, the loan application was posted on his Alabama-headquartered bank’s website, BBVA. Videla immediately logged in and submitted the initial small business administration application.
The next day he received a call from someone at BBVA explaining the documents he would need. After doing some research online, Videla already knew all it took, including his employee and tax information, which he downloaded online from his payroll provider.
“I had every piece of paper ready to go,” Videla said. “I hung up on him and downloaded the documentation.”
Days passed and he heard nothing.
The Smarter Remodeling team
Source: Fabian Videla
To be able to cover his employees’ paychecks, he would need the loan in his account by Thursday. “I was talking to the guys,” Videla said. “‘If nothing comes up, we’re going to have to start firing people.’
“They were very worried,” he added. “A lot of these guys don’t have any savings.”
Finally, on April 8, he received a call from BBVA. He had been approved for the loan. “I almost started to cry on the spot,” Videla said.
The money was in his account the next day and he didn’t have to fire a single employee.
“The attitude of the whole team after the loan was 100% different,” he said. “We can think about running the business now.”
Videla said he knew many small business owners might never see the help he gave.
“I don’t know if they will have enough funds to help everyone in America, so I would advise them to come up with some other creative ideas as well,” he said.
He did, and it paid off.
In the morning, the company’s project managers take their temperature using an infrared thermometer. “If that’s normal, they’re going to their first job,” Videla said. “Otherwise, they have to stay home and let us know. “
On each job site, they set up hand disinfection stations and workers wear gloves, shoe covers and masks.
“[Customers] see that we take the protection of our employees and their families seriously, ”he said.
For those who are still reluctant to let a team into their home at this time, Videla explains that the renovation process can begin with virtual consultations. “Establishing a budget, selecting, all of this takes time,” he said. “If you want to do renovations over the summer, you have to start now.
“And it works,” he said. “We get phone calls and make appointments.”