ROCKFORD AND DORR, Mich. — Now that the $350 billion put aside within the CARES Act for small enterprise loans has dried up, enterprise homeowners in Michigan are seeing combined success.
“After we utilized we weren’t positive at first, as a result of it’s like typical working with the federal government in any means, you’re at all times skeptical. So we had been skeptical on the very starting,” stated Tony Lefever, proprietor of Platinum Energy Sports activities in Rockford.
“I believe I did it on a Saturday that day. The banks had been basically attempting to determine it out. I figured it could get processed Monday. However I did it on a Saturday, and I acquired phrase of it perhaps 5, six days in the past now.”
The staff at Platinum Energy Sports activities are a number of the fortunate ones. For now, they’ll hold paying their practically dozen workers in the midst of an unprecedented halt in enterprise in Michigan.
“So as soon as we knew that was coming, it actually made it really feel higher for this longer run,” stated Lefever.
Others weren’t as fortunate. Jenni Figley, who owns La Bella Hair Studio in Dorr, was denied for federal and state loans and grants. She and her husband purchased the salon solely a 12 months in the past after she labored there as a stylist.
“When the shutdown occurred, all of us sort of went into panic mode,” stated Figley. “We didn’t know what to do.”
Figley’s denial letter from the Michigan Financial Improvement Fee acknowledged that solely 31 companies out of the 850 that utilized in Ottawa and Allegan counties obtained monetary assist.
“Now we have no revenue, and we nonetheless have an overhead,” she stated. “Now we have to pay for our property hire, web, cellphone, electrical energy.”
Figley and different companies who had been denied are upset by current headlines. Cash from the federal Paycheck Safety Program is supposed for companies with lower than 500 workers with income of lower than $2.5 billion. However provisions within the invoice enable for big restaurant chains to use that on a per-location foundation, that means they too are eligible for aid as small companies.
Restaurant chains reminiscent of Ruth’s Chris, Potbelly’s and Taco Cabana just lately introduced they’d obtain multi-million-dollar loans.
Shake Shack just lately introduced it could be returning a $10-million mortgage after backlash. The chain at present employs 8,000 staff at 189 places.
Figley, together with her lower than 10 workers, is starting to fret.
“I truthfully assume we’ve hit worst-case situation, as a result of I’m paying for the overhead out of my very own pocket,” she stated. “The salon is simply sitting there empty. And it’s completely devastating.”
