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C.O. small business owners worried as federal loan funds run out

SBA announced Thursday they've stopped processing new applications

BEND, Ore. (KTVZ) -- On Thursday, the Small Business Administration stated on its website it is no longer accepting new applications for federal loans and grants due to funds being exhausted.

The $349 billion fund set up by Congress was intended to ease the financial burden on small business owners. Many financial institutions use a two-step approval process --firstly, through the bank, and secondly, through SBA.

Without additional funding, small businesses with pending applications that had not yet been submitted to SBA before funds were exhausted will likely not receive funding. This leaves the future of small businesses in Central Oregon uncertain.

One of the concerned business owners is Cydnee Schoettler, the owner of Dollhouse Beauty Lounge in Bend. She said she last stepped foot in her business March 8 before shutting down her doors to comply with Gov. Kate Brown's order to close non-essential businesses.

"It's nerve-wracking, to say the least," Schoettler told NewsChannel 21 Thursday. "It's something I can't not think about daily, because it's my livelihood and it's how I support my family. Unfortunately, I am starting to feel hopeless, as to getting help in a timely manner."

Schoettler said she will continue applying for unemployment benefits, but she said the wait for those is also uncertain.

Katy Brooks, CEO of the Bend Chamber of Commerce, shared a message for small business owners.

“Don’t give up hope yet, because there will be more money coming," Brooks said. "In the meantime, there are some things you can do to take more control. That's asking, 'Where else can I look for money?' 'Can I change my business plan?' and 'How do I prepare for reopening?'"

Brooks said small business owners should collaborate with each other to come up with new ideas, so they and their business can back stronger once restrictions are lifted.

Rep. Greg Walden, R-Ore., issued the following statement regarding the lack of PPP funding.

“Thousands of Oregon small businesses were able to take advantage of the Paycheck Protection Program that the Trump Administration moved with light-speed to put into effect. This was the program that allowed small businesses to get a loan that could turn into a grant at the end of June if they kept their people on the payroll. Unfortunately, that program has now run out of money."

"It didn't have to be this way," Walden added. "More than a week ago, President Trump asked for another $250 billion for this fund, I supported that, and most of us supported that, but Democrats in the United States Senate blocked that request."

"So now the fund has gone dry, as predicted, and now we have small businesses all across America and certainly all across Oregon that can't get the funding they need to get to the other side of this fiscal crisis affecting our economy because of the pandemic," Walden continued. "Congress needs to come together, we need to work this out, and we need to replenish this fund as soon as possible." 

To watch Walden's full statement, click here.

To support local businesses in Bend, visit SOS Bend. You can also find the businesses that are still open on KTVZ's Open4Biz page.

Bend / Central Oregon / Coronavirus / Top Stories
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Rhea Panela

Rhea Panela is a multimedia journalist for NewsChannel 21. Learn more about Rhea here.

Comments

10 Comments

  1. Oh yeah, great that I could get the PPP loan to take my employees off of unemployment and pay them for 8 weeks to not work since none of this liberal governors aren’t willing to reopen businesses. Typical, a bunch of talk about the importance of small business but as usual that’s all it is just talk and no action that actually helps. Hope all of you nanny state Kate Brown fans will be happy when you don’t have any restaurants or recreational activities left when she finally decides your not all gonna die from leaving your house.

    1. It’s suppose to make you feel good. Take on all that debt that government ‘might’ forgive to pay people not to work. And when it does, guess what. IRS will consider it income and you’ll be hit with taxes. Kate shuts it down and expects the feds to pick up the tab. The PPP was a scam.

  2. Has anyone in Central Oregon had a loan funded through these programs?

    The small business owners I know have not, most applied on day 2 of availability…but the small business owners I know have around 10 employees.

    The help line about info on the process is overwhelmed..

  3. reopening is easy – just get the government out of the way so we can unlock the doors and turn on the lights. The hard part is those who are so deep into the panic to have the confidence to come back out into the real world and live.

  4. Katy Brooks, CEO of Bend Chamber of Commerce…what a joke. She says “Where else can I look for money”. That doesn’t mean you are going to get any money. She also says “Can I change my business plan”. What business? I have no business and am not allowed to have customers. And she talks about reopening. When would this reopening occur? Today, tomorrow, a month, 6 months, a year? Brooks also says to collaborate with other small business owners. Other small business owners are in the same boat, dependent on government allowing them to reopen.

  5. So why won’t Nancy and the Dems go back to Washington DC to approve more funding ? She’s home eating ice cream out of her $24,000 freezer while small business die.

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