Only 10% of the Santa Clarita Valley businesses that applied for Paycheck Program Program relief received it and only 5% have received complete funding from the Emergency Injury Disaster Loan program, according to a recent survey by the SCV Economic Development Corp., SCV Chamber of Commerce and College of the Canyons.
On Friday, President Donald Trump signed a $484 billion coronavirus stimulus bill that is giving hope for SCV businesses who are looking for some form of financial relief during the COVID-19 pandemic.
The bill is set to put an additional $310 billion into the PPP and additional guarantees for smaller lenders who cater to small, local businesses. At least $60 billion must be given to small banks, community financial institutions and credit unions, according to officials.
Earlier this month, the PPP had been established specifically for the purpose of payroll, mortgage interest, rent and utilities payments over an eight-week period after getting the loan.
The small business that took the loan would receive total loan forgiveness if the payroll headcounts remained the same and 75% of their loan was given to payroll.
The EIDL loan, the second form of federal financial relief for businesses, is a low-interest loan that was designed to include up to $10,000 in more immediate grant funding.
According to a survey of 230 local businesses released by the SCVEDC, the SCV Chamber of Commerce and COC, 88% of the respondents had applied for one or both loans, with 55% applying for EIDL and 83% applying for PPP.
Only 9% of applicants received the EIDL emergency advance, and only 5% received complete EIDL funding. A total of 33% of businesses have received approval for PPP, and only 10% have received their funds.
“Most of these were businesses under 25 employees, and almost a third were micro businesses under five employees,” read a news release regarding the survey. “PPP applicants were seeking modest amounts of money with 43% asking for $50,000 or less, and 30% asking for $25,000 or less.”
The SCVEDC encouraged applicants to contact their banks immediately to ensure they will accept PPP loan applications or have them in the waiting list. Officials stated that while the county stay-at-home order is presently set to expire on May 15, the state of California’s order has no current end date.
