TAMPA, Fla. — The success of the nation’s economy depends heavily on small businesses, but the CARES Act’s promise to disburse billions in emergency loans through the Small Business Administration has fallen short for many local entrepreneurs. However, a new proposal set to pass through Congress could bring more than $480 billion in additional relief to small companies.
“I think the next tranche is going to be approved very shortly,” said Roy Hellwege, chairman and CEO of Pilot Bank of Tampa. He suggests entrepreneurs prepare now so they are in a position to be approved for funding. “I'd be sure your application is in, and to the extent that you can develop a relationship with a banker, and have an open communication channel, I think that would be very beneficial for you,” he said.
Hellwege said Pilot Bank has already approved hundreds of SBA loans made available through the CARES Act. “We approved over 400 in the first round, and that was $71 million that we put back in the hands of small businesses,” he said.
One of those businesses is DACCO Behavioral Health, a Tampa-based non-profit that treats substance abuse and mental illness. CEO Deanna Obregon said DACCO’s primary bank was overwhelmed with requests for funds and was not able to immediately help, so the group turned to Pilot Bank.
"When you're banking with somebody, you expect that they're going to be there,” she said. “And so to be told, 'we have too many applications…was actually kind of scary for us..."
Obregon said money was getting tight as COVID-19 forced DACCO to cut back on business. The group employs more than 200 people, and those jobs were at risk if money did not come soon.
"There's a greater need for services, and yet, we had to pull back in order to make sure everybody still was safe,” she said.
DACCO applied for the federal Paycheck Protection Program through Pilot Bank. This is a COVID-19 relief effort that gives billions to keep small businesses afloat.
"We knew that it was very time sensitive because of the limited amount of funds,” she said.
Hellwege said DACCO’s move to a smaller bank is one he suggests for companies who didn’t get the first round of funding.
“…A bank like Bank of America, or JPMorgan Chase are sitting on literally tens of thousands of applications--and while they have a lot of resource, obviously, that is a very significant challenge from a processing standpoint. So banking is still a relationship game,” he said. “…If you're having a challenge getting communication from your current bank, you don't know where you stand, then I think a community bank, frankly, might be a good option because we tend to be able to communicate directly with the client…”
In terms of preparing to apply for a loan, Hellwege said it starts with relationships.
“Work on understanding where your application is in the queue relative to your core bank. If you're not getting a response, do not just sit back and wait, be proactive,” he said.
Also, make sure your numbers are in order.
"If you've been in business for a full year in 2019, make sure you have your quarterly 941s...have your tax return available...or have your fiscal year-end financial statements available, complete the application obviously, in its entirety, and double check your math,” he said.
For more information about preparing for a SBA loan, click here.
Emerald Morrow is a reporter with 10News WTSP. Like her on Facebook and follow her on Twitter. You can also email her at emorrow@wtsp.com.
Emerald Morrow is a reporter with 10News WTSP. Like her on Facebook and follow her on Twitter. You can also email her at emorrow@wtsp.com.
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