Small Business Administration needs more money to keep lending

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Hampton Roads businesses will have to wait to be relieved of potential economic pitfalls from the coronavirus as SBA loans are halted.

NORFOLK, Virginia – At present, the Small Business Administration is not accepting new applications for certain COVID-19 relief loans and this is due to a lack of funding.

Thousands of Hampton Roads business owners have applied and some have even been approved for an SBA loan.

Towne Bank is one of the many local banks that accept these loans for business owners.

“In our region, the 5,000 companies we helped had 117,000 employees,” said Davis.

Business could be better at Granby Street Pizza in Norfolk. Owner Peter Freda does what he can to stay open with limited staff.

“We currently only have about four employees instead of 12 or 15,” said Freda.

Freda applied and was approved for the SBA Paycheck Protection Program Loan.

Another business owner was not so lucky. Since the SBA is not accepting new applications due to a lack of funding, Rhett Rebold began to believe that he might not get his loan for a long time.

Rebold owns Vibrant Shores Brewing Company in Virginia Beach. He applied for the Emergency Advance Loan for Economic Damage in Disaster. This is a special SBA loan that business owners can no longer apply for at this time.

“Even though I put it on two and a half weeks ago it’s probably on the slow track which is even slower I guess they’re already strapped for cash,” said Rebold.

Bank owner Davis said people shouldn’t panic. Local loans will be available.

“The government has approved a facility that will take effect this week where banks can borrow money from the government, promising that these loans will be made as collateral, so that we can replenish our cash flow and put that money on loan to businesses to. other purposes, ”Davis said.

Business owners are hoping the government can come up with another plan soon.

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