With Paycheck Protection Program Out Of Funds, Small Business Owners Wonder What's Next
CHICAGO (CBS) -- Struggling small businesses in Chicago are banking on government loans to keep them afloat during the coronavirus shutdown.
But one major federal resource – the Paycheck Protection Program – is now out of funds, and Congress is debating how to re-fund it.
CBS 2's Tim McNicholas on Friday took us inside a business, wondering what was next.
On a Sunday afternoon in Lakeview, the George Street Pub, 2858 N. Halsted St., would usually be serving beers and showing a Cubs game. Instead, they are getting served a pint of uncertainty.
"Very stressful," said owner Dana Denizman.
Denizman said she applied for a Paycheck Protection Program loan through her bank. They sent her a letter Tuesday saying they would send her application to the government for approval.
But now, the federal government said the program is out of funds – and no one has told Denizman whether she has made the cut.
"We have a million questions," she said. "Our staff asks us, friends ask us, and we just don't know anything."
The Small Business Administration said 1.6 million loans were already approved for a total of $339 billion, and for now, they are not taking any new applications.
The agency released a statement saying, "We urge Congress to appropriate additional funds" for the program.
"We're just hoping to cover our costs at this point, and hopefully give our kitchen staff a little bit of a paycheck," Denizman said.
The grill is still open for takeout and the pub is doing everything they can to advertise it. But Denziman said takeout orders only go so far.
"What's at stake here if it doesn't get refunded? What happens then?" she said. "I will probably have to close the bar."
Some banks said they are still processing applications that will be sent to the government if more funds become available.
We reached out to the government to ask what the status is for people who applied, but have not heard back. We will let you know if they get back to us.
