The CARES Act support for small businesses force to close to limit the spread of #COVIDー19 is an ABSOLUTE AND TOTAL FAILURE.

Terrible implementation, false promises, under funding, and outright law breaking on each front. /1

Start with the Economic Injury Disaster Loan Program (EIDL). Law was written to provide emergency grants no larger than $10,000 in THREE DAYS of application and loans up to $2mm.

This grant did NOT have to be repaid, even if you are denied for the EIDL.

Sounds good, right? /2

CARES act had $10b for these grants. At $10K each, first million applicants only.

Streamlined SBA website went live on 3/30. I applied that same day.

No confirmation email or way to check status online.

So we all wait, counting on the 3 day law to be honored. /3

Now 10 days later. No grant. No contact from the SBA at all.

NO ONE HAS GOTTEN THE GRANT

Worse, there are leaks suggesting SBA has interpreted the law to be "up to $10K grant".

That $10K your business was counting on? Now likely only $1K per employee /4 https://www.wsj.com/articles/sba-under-fire-for-failing-to-get-aid-to-struggling-small-businesses-11586343600

Also reported that despite the $2m max written into law, EIDL loans will be capped by @SBAgov at $25K. Reduced down to just $15K if you ever do get a grant.

Won't cover rent for most businesses, much less other expenses & it'll be WEEKS more before loan money is dispersed. /5

Enter the Paycheck Protection Program (PPP). Law was written to provide 2.5 months of payroll as a loan through local banks to distribute the application load off the SBA.

Loans are forgivable as long as you rehire employees and use 75% of it for payroll.

Sounds good, right? /6

Banks already in the SBA loan network were all supposed to honor the PPP.

That fell apart when the SBA was slow to provide rules and regulations to banks.

Banks balked at the terms, so SBA had to double their rate.

But they forgot about bank laws regarding ID verification /7

Result: Banks limited PPP loans to only existing business account holders who already satisfied these ID requirements.

Most businesses have accounts at only one bank. So everyone got locked into a single lender.

PPP applications were mandated to be accepted starting April 3. /8

With the exception of @BankofAmerica, VERY few banks were ready, due to confusion with rules and forms.

A handful took applications later that afternoon, but were so overwhelmed with applications, they stopped after an hour or so.

Days more went by while businesses closed. /9

My bank only started taking applications again yesterday morning. It was a total mess. Took hours just to submit forms that were long since completed.

At least there's enough money to fund the PPP loans once they are approved, right? /10

Nope. The few banks that were processing loans already burned through the $350b in the CARES Act.

Remember, unless you had a business acct prior to 2/15, you CAN'T apply for PPP at another bank.

OK. Trump and McConnell agreed to get request more funds via unanimous consent. /11

The CARES act, delayed a week by Pelosi, was written together by both Dems and GOP. Getting more funds for something they both already agreed upon should be a lay-up, right?

Wrong.

Dems blocked it this morning. /12

Let's recap the CARES act success helping small business:

Emergency $10K EIDL grant law requires in 3 days?

NOPE

SBA loan for rent and expenses up to $2m?

NOPE

PPP loan for 2.5 months payroll to retain employees and keep them off unemployment?

NOPE and BROKE.

/13

Most small businesses have a couple weeks of cash reserves. That's already long gone. Employees are being laid off by the millions.

If something doesn't change VERY soon, most of the small businesses will soon be gone, too.

Permanently.

/END