Banks To Help Small Businesses Through Payment Protection Program

Many business owners across Northern Virginia are waiting to hear back from their banks about their application to the Paycheck Protection Program. That’s the $350 billion program that was part of the $2.2 trillion stimulus law designed to offer money to small businesses who can demonstrate they are keeping their employees. This money would help the businesses to rehire their employees who were laid off when the economy abruptly shut down as the result of the global COVID-19 pandemic.

Burke and Herbert Bank in Alexandria has received about 1,000 applications for money from the Paycheck Protection Program, about 300 of which have been approved. Bank officials hope to start closing on the loans this week.

Bill Reagan, executive director at the Alexandria Small Business Development Center said, “It’s kind of put us in an awkward position. We were giving businesses the best information we had, but that information began to change last week and we became concerned that what we had told them earlier was no longer applicable.”

According to Herndon Connection, “Brenac is one of the many business owners who is still waiting to hear back from his bank about the program, which has been overwhelmed by business owners desperate to get their hands on federal money to keep them afloat. The rollout of the program has been confusing for business owners and banks, who say it’s been difficult to navigate a system beset by layers of bureaucracy and a changing set of rules. Demand for the taxpayer-backed federal money has been so great that the Small Business Administration and the banks administering the program have had to improvise on the fly, changing the rules after the applications had already been submitted.”

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Maryam

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Maryam N. is a Senior Writer at Nesbitt Realty. She is an expert on Fairfax County. Maryam has also worked previously as a geologist. She is a foodie and enjoys cooking and exploring new restaurants.