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Small Businesses Frustrated With Federal Loan Application Process

CHICAGO (CBS) -- Weeks after it was established the federal government's Paycheck Protection Program continues to frustrate struggling small businesses in the coronavirus crisis.

Business after stressed business in desperate need of promised federal loans is feeling similar pains when applying at their banks.

"It was a little aggravating," said James Bateman.

Bateman owns Gadabout restaurant in Andersonville.

"It seemed like every single day that I logged onto the portal to get this done it had a different list of requirements," he said.

"It's horrible," said The Hair Team's Patti Marcheschi.

Marcheschi just wants to get money to the five stylists at her small family salon in Alsip.

"One day I spent 5.5 hours on the telephone," she said.

"Then they finally accept an application to give an application," said Jeffrey LaMorte.

LaMorte, who owns three salons and employs nearly 130 people, was eventually completing a real bank application online.

"It shut down and told me, 'Sorry, we are no longer going to be accepting applications from your business. Try another bank and don't call us because we don't have any answers,'" he said.

The federal government's Paycheck Protection Program earmarks $349 billion in low interest or forgivable loans for small businesses. Banks have been overwhelmed by loan requests and changing guidelines.

"Initially I was very optimistic," said Bateman.

But now he is worried about the loans not coming through. The program has already granted 1.3 millions loans totaling $296 billion and is quickly approaching its limit.

"I went through a smaller bank, and I was able to get through," LaMorte said.

But that's still no guarantee for business owners like LaMorte and Bateman who continue to pay staff.

"I want to make sure we're taking care of them," said Bateman

A lot of that hinges on those still out of reach federal loans.

"I started as a dishwasher and I want to make sure that I'm paying my staff because I know what it's like to not be making any kind of income," he said.

Millions of Americans know that feeling now, too.

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