By Ari Levy | CNBC
Jourdain Degarmo had to lay off all seven employees from his doggie day care in San Francisco last month after California’s shelter-in-place order required nonessential workers to stay home. Degarmo has continued paying salaries with his cash on hand but needs help from the government to keep those checks rolling.
On Friday, Degarmo and millions of small business owners like him will start applying for government-backed loans that will let them pay people not to work with the hope that once the economy reopens companies can pick up where they left off. With jobless claims for last week surging to a record 6.6 million, the Trump administration is desperate to keep money flowing so families can pay rent and put food on the table.
“I want to retain my staff and the people who have worked for me for years,” said Degarmo, 30, who owns Mr. Muggles Dogs with his husband.
But confusion about the Small Business Administration loans is widespread at banks and among potential borrowers. The banks responsible for accepting the applications and distributing the money aren’t all up to speed and, inundated with inquiries, are relaying differing messages to their clients. CNBC reported on Thursday that JPMorgan Chase, the biggest U.S. bank, told customers by email that it would likely not be ready to start taking applications on Friday. Bank of America’s loan portal came online Friday morning, making it the first major bank to get up and running.
“We have a team of 8 of us spending nearly all day answering these questions. With the sba guidance that was just released late yesterday there’s a whole new round of questions from business owners.” ~Jordan Rose, Founder of Rose Law Group
