Small businesses struggle as federal relief funding runs dry

CROCKETT, Calif. - The Small Business Administration says its $349 billion Paycheck Protection Program to keep small businesses afloat by keeping paychecks coming, is drained.

Two small local businesses are struggling as a result. 

Two years ago, Joanne and Luke Savoy, forwent buying a home to start a yoga studio and coffee and sweets shop in Crockett. Then came the federal shutdown, which led to their shutdown and the layoff of their 16 employees.

"As things sort of evolved, that we had to put our personal safety and the safety of others you know, ahead of anything else," said Joanne Savoy.

So, can their small businesses survive without Federal Paycheck Protection Program assistance.

"Absolutely not. No. I couldn't compromise my family. I couldn't sink? us further in debt," said Ms. Savoy.

Even though the Savoy's quickly applied at several banks as recommended, including Wells Fargo, they've heard nothing of substance from anyone. "We've done our best to try to do our due diligence, but there's not a lot of clarity around how this thing is gonna roll out," said Savoy.

Across San Pablo Bay, another Payroll Protection Program applicant: primary care doctor David Goodman and his close knit staff of four employees, have served patients in and around Novato, including many regional first responders for almost a quarter century.

"I thought it was program that had my name written on it and other small businesses," said dcotor Goodman.

When the shutdown came, business sharply declined, so much so, he applied for a loan through Bank of America, where he has done business going on 40 years. But he was shocked to be told his practice didn't qualify for the Paycheck Protection Program.

"I was blocked from applying because Bank of America has instituted a policy that only allowed businesses to apply if they had both a depository as well as a lending relationship.

That was not a part of program rules. Bank of America then opened the program to all borrowers once a flurry of complaints and a class action lawsuit was initiated by other potential borrowers. Though he then reapplied, doctor Goodman has no idea where his application and the fate of his employees, who he says are like family, stands.

"My application and so many others, are in limbo," said Goodman.

That makes Joanna Savoy wonder even more about her limbo. "I think Wells Fargo is probably doing the best they can but also it's hard to know who's being prioritized," said Ms. Savoy.

Bank of America replied just before 4 p.m. on Friday to say it has 6,000 employees processing the applications in the order they were received and anticipates that more money will be forthcoming.

The U.S. Small Business Administration released a statement urging the Congress to protect millions more American workers and their families by appropriating additional funding to support Paycheck Protection Program.