Small businesses worried application issues will prevent them from getting much-needed loans

Local News

SACRAMENTO, Calif. (KTXL) — 16th Street Auto Body has been a downtown Sacramento staple for decades.

These days, the business remains open but owner Clark Magee says paranoia has become the norm among customers. 

“We’ve seen people leery of getting out of their cars. Leery of dropping their cars off and leery of people they don’t know of being in their cars,” Magee told FOX40. 

Business has been nonstop pickups and drop-offs of customers’ cars, along with extensive cleaning when they are done. But it’s not business as usual and Magee said he is hoping the federal government Paycheck Protection Program loan money would keep him from laying off workers.

“We’ve seen a lot of ups and downs,” said Magee. 

Application issues with the bank, however, have kept Magee from the program. 

“They said they would start a file but right now they said they are not accepting applications, just collecting information based upon when they find things out,” said Magee. “They said it’s dynamic and they don’t really know what it’s really going to be.”

Other people are also having application problems. 

“We’re asking for details. What financial information they are going to need. What applications. How do you apply?” said Noe Hernandez, the CFO for Zocalo. 

Hernandez told FOX40 his bank was also not ready for him to apply.

“The best part of what make this program very appealing is the fact that you can be forgiven for the majority of the loan,” explained Hernandez. “This is why you see everyone rushing to get this kind of loan.” 

The loan program is also a first-come, first-served situation, making it even more stressful. 

“We are trying to push to be in the front of it by applying quickly. That’s what we are trying to do right now,” said Magee. 

Many small businesses fear that when their banks are ready for them to apply it will be too late. 

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