COBB COUNTY, Ga. — What is supposed to be a lifeline for small businesses is turning out to be a complicated, slow process and we know many of you are struggling to stay afloat.
Channel 2’s Tom Jones heard from many business owners in Cobb County who are running into major roadblocks getting much-needed funds.
This is up to $10,000 that small businesses don't have to pay back.
It's called EIDL, or the Economic Injury Disaster Loan.
Some businesses are calling the loan process a disaster.
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Students used to fill John Childs’ afterschool program and summer camp in Fairburn and Inman middle school.
Then the coronavirus hit.
“We had to close up almost immediately,” Childs said.
Of course that meant his income and cashflow suffered.
He had to lay off his 13 employees.
He then applied for federal loans, like EIDL.
“Almost as soon as they were available,” Childs said.
That loan is supposed to give small businesses with 10 employees or more an advance of 10-thousand dollars that they don’t have to pay back.
They're supposed to get it within 3 days.
It's been almost 2 weeks since Childs applied.
“My application, my original one was deleted. I had to go back and reapply,” Childs said.
Jones heard from many small business owners with the same problem.
They are having all kinds of trouble getting the loan.
Jones spoke to Mark Lupo with the Univsersity of Georgia’s small business development center.
He says the SBA and lenders are inundated.
“Just the volume of applications coming in is really overwhelming many systems,” Lupo said.
He says the SBA is working to increase the number of lenders.
Childs says the government has to work the kinks out.
“It’s been challenging. It’s been challenging,” Childs said.
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