CORONA (CBSLA) – An Inland Empire enterprise needs to know the place their Payroll Safety Program cash is after they utilized and have been authorized final month.
T3 Movement builds electrical standup autos for regulation enforcement and personal safety.
CEO William Tsumpes says they’ve saved all of their workers on payroll because the pandemic hit. Income is down because of COVID-19, so the corporate has been banking on a PPP loan.
“All of our employees, whether they’ve worked or not worked, have been on full time payroll, even on absent days,” Tsumpes mentioned.
A paper error saved them from securing a loan within the first spherical, however when spherical two opened up, T3 Movement obtained an e mail on April 30 saying they’d been issued an SBA loan quantity.
A day later, they obtained one other e mail saying they need to fund inside one to 2 days – however then weeks handed.
“Here we had an approved loan, we had signed the promissory note for the Treasury saying we were now responsible for the repayment of funds that we had yet to receive,” mentioned Tsumpes, including he has but to get a solution from Bank of America as to when the loan will fund.
The U.S. Treasury Division requires lenders to pay out the loan inside 10 calendar days. It’s now been 20.
Professor of Finance and Enterprise Economics at USC Marshall Rodney Ramcharan says the reply is probably going tied to banks being overwhelmed.
“These agencies have never done this before, so just think of the paperwork and the computers they need to keep track of all this, so it’s awful difficult to get that volume of dollars out the door,” Ramcharan mentioned.
The U.S. Census Bureau just lately launched knowledge that fewer than 40 p.c of small companies that utilized for PPP loans truly obtained them.
A Bank of America spokesperson instructed 2 On Your Aspect they’ve escalated this case.