PHOENIX, Ariz — Small businesses are continuing to take a hit due to COVID-19 restrictions. But technical trouble haunted the Small Business Administration’s system for getting out loans, and added more strain to businesses desperate for funds.
An additional $310 billion dollars in funding was allocated for the second round of the Paycheck Protection Program, however, lenders across the country experienced issues as the portal opened Monday morning.
"The frustration is palpable” Paul Hickman, President & CEO of the Arizona Bankers Association said. “Our bankers are working in shifts around the clock because the system is open 24/7 to try to push through the applications they’ve got in their pipelines.”
Both Republic Bank of Arizona and Arizona Federal Credit Union tell 12 News they had issues submitting loans.
Brian Ruisinger, CEO of Republic Bank of Arizona said his team was only ale to get three loans done by 5 p.m. Monday as the screen locked out. He said his team worked through the night to get dozens of more loans submitted.
Arizona Federal Credit Union’s Chief Operating Officer, Jason Paprocki said they had as many as 40 people trying to get applications in, but also experienced the system timing out multiple times during an application. Their team was able to get 113 loans submitted by end of day Monday.
Hickman said the technical problems appear to be smoothing out Wednesday, saying almost $90 billion of the second round of funding has been allocated, up from $52 billion Tuesday afternoon.
Hickman expects the funding will run out this week or early next week.
But many businesses are still waiting on money, including Arizona Bread Company. Owner Amy Wakser says they applied for the PPP the first time around, but their lender pulled the application.
“We’re trying to just go with it as best we can for as long as we can but I don’t know how long that’s going to be,” Wakser said.
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