He said he reached out to two banks Friday that seemed unfamiliar with the new program, as he nervously watched Treasury and SBA officials “tweeting about how many loans and how much money has been approved or processed for this program.” Joel Nathanson, executive vice president of Scottsdale financial consulting company Arriba Capital, said his phones were ringing off the hook Friday. He also heard of problems with the roll-out. “The SBA normally has 30 days to write guidelines, they tried to finish them in a week,” Nathanson said. “It’s supposed to go live today and the feedback we’ve been getting from the banks is that they still don’t have enough guidance to start lending yet.”
The Bay Mills Indian Country is ready to keep paying employees with the help of a major #Coronavirus relief program. But now the tribe and the entire Indian gaming industry are in danger of being shut out completely by the Trump administration. #COVID19 https://t.co/T0pPYNa0K2— indianz.com (@indianz) April 3, 2020
While acknowledging some early issues on the lender side, the lead lender relations specialist at the SBA Arizona district office, Craig Jordan, said loan applications were being approved by some institutions as of Friday afternoon. “Some lenders are accepting applications, some are not set up yet,” Jordan said. “It will roll out over the next couple of days.” Treasury Secretary Steven Mnuchin said in a tweet Friday afternoon that the SBA had already processed $1.8 billion in loans nationwide “mostly all from community banks.”
"We need clarification now": With the $33 billion tribal gaming industry at a standstill, the Trump administration is sending mixed signals about the #Coronavirus Paycheck Protection Program. Issue is EXTREMELY time sensitive because applications start today. #COVID19 #CaresAct— indianz.com (@indianz) April 3, 2020
Ron Evans, the chief credit officer at West Valley National Bank, said even though his bank was overwhelmed, with 30 to 40 calls an hour about the Paycheck Protection Program, it was still able to process applications. “We’re trying to accommodate as many people as we can,” Evans said. “We’re getting it over to the SBA as quick as possible based on the guidance we have from them now.” Under the program, loans are available for companies, nonprofits and independent contractors that can have no more than 500 employees in most cases. Recipients can get up to $100,000 per employee to use on rent, utilities and payroll.
Sen. Martha McSally, R-Arizona, said in a webinar on Thursday that part of the problem was the amount of time it took to pass the CARES Act. That left Mnuchin and the SBA “scrambling to develop guidance out to financial institutions so that you can walk in or electronically apply for these forgivable loans,” she said. Nathanson said with the rules and terms for the loan program being changed several times over the course of the week leading up to its launch, it left “a lot of uncertainty still in the program” for lenders. He said he is concerned by “every day that goes by and people aren’t getting paid.” Evans said all he could do was ask business owners applying for loans at his banks to be patient. “We’re doing everything in our power and … we understand the sense of urgency of the business owners in our community and the impact it has on their employees,” Evans said. “We want to make sure that people in our communities are taken care of.”
"They need to clarify this for tribes," Dante Desiderio (Sappony) of NAFOA @nafoa told https://t.co/0yYFAWzrcJ. With applications starting today, the fear is that #Coronavirus Paycheck Protection Program will run out before Indian Country gets a fair shot. #COVID19 #CARESAct pic.twitter.com/agyAs6lKi7— indianz.com (@indianz) April 3, 2020
Phillips, who has been reaching out to banks all week, said he “felt immobile” by the confusion he encountered Friday and the news that loans were being approved for some businesses. But, he said, he doesn’t have a choice but to keep on trying. “I am fighting for my team, I am fighting for my business, I am fighting for my family right now,” Phillips said. For more stories from Cronkite News, visit cronkitenews.azpbs.org.
I will immediately ask Congress for more money to support small businesses under the #PPPloan if the allocated money runs out. So far, way ahead of schedule. @BankofAmerica & community banks are rocking! @SBAgov @USTreasury— Donald J. Trump (@realDonaldTrump) April 4, 2020
Note: This story originally appeared on Cronkite News and is published via a Creative Commons license. Cronkite News is produced by the Walter Cronkite School of Journalism and Mass Communication at Arizona State University.