LI small business owners desperate for help after being shut out of federal loan program

Many Long Island business owners are now desperate for financial help after being shut out of the federal money the first time around.

News 12 Staff

Apr 20, 2020, 3:49 PM

Updated 1,457 days ago

Share:

Many Long Island business owners are now desperate for financial help after being shut out of federal money the first time around.
There's a lot of frustration, anger and concern for owners of small businesses who say they never got a shot at getting federal help during the first round of loans.
A lot of the complaints came from businesses owners who deal with larger, commercial banks. They say they were so backlogged that they weren't even able to get through.
Some smaller banks had more success. Bridgehampton National Bank says it processed 2,500 loans by basically working around the clock.
"We worked overnight on many nights," says Kevin O'Connor, president of Bridgehampton National Bank. "The SBA system was slow during the day. We found at three o'clock in the morning there was a lot greater access to it."
The definition of a small business in the eyes of the federal government is a company with fewer than 500 employees. Many businesses across Long Island have only a fraction of that, but the loan money was gobbled up quickly.
Longtime restaurant and pub owner Jeff Egan echoed the feelings of disappointment coming from a lot of Long Island small business owners
"I literally started the process an hour after they said we could put in applications," says Egan. "I have not received a dime. It's very tough just to even get the banks to call back to tell you if they've gotten your applications."
Sal's Auto Body, which has been in Smithtown for 50 years, also failed to get a loan and says the situation is becoming desperate for them.
"I'd say we have about two weeks left before we start really panicking," says Laura Jacobellis.
undefined
 
 


More from News 12
2:14
No layoffs in Sachem School District; multimillion-dollar budget shortfall remains

No layoffs in Sachem School District; multimillion-dollar budget shortfall remains

1:32
Chances for showers next 2 days; cooler trend for rest of workweek

Chances for showers next 2 days; cooler trend for rest of workweek

2:06
School superintendent: No major cuts to programs or school closures this year in Long Beach

School superintendent: No major cuts to programs or school closures this year in Long Beach

1:34
West Islip BOE approves $139M budget as parents address safety concerns

West Islip BOE approves $139M budget as parents address safety concerns

1:40
West Islip student accused of bringing gun, bullets to high school pleads not guilty

West Islip student accused of bringing gun, bullets to high school pleads not guilty

Adventureland opens Tuesday for people with autism and their loved ones

Adventureland opens Tuesday for people with autism and their loved ones

0:23
Police: Tractor-trailer filled with potatoes goes up in flames on LIE

Police: Tractor-trailer filled with potatoes goes up in flames on LIE

1:04
Driver in fatal shooting of Detective Jonathan Diller pleads not guilty

Driver in fatal shooting of Detective Jonathan Diller pleads not guilty

1:59
State budget tentative agreement allows school boards to move forward

State budget tentative agreement allows school boards to move forward

1:30
DEC: 3rd layer discovered under chemical drums already uncovered at Bethpage park

DEC: 3rd layer discovered under chemical drums already uncovered at Bethpage park

0:22
Police: 2 officers injured while making arrest at Bellerose 7-Eleven

Police: 2 officers injured while making arrest at Bellerose 7-Eleven

0:30
Police: 23-year-old charged for scrawling antisemitic graffiti in East Meadow

Police: 23-year-old charged for scrawling antisemitic graffiti in East Meadow

1:52
‘Wastewater Olympics’ held in East Rockaway ahead of Earth Day

‘Wastewater Olympics’ held in East Rockaway ahead of Earth Day

1:50
Made on Long Island: Ronance Mouthwatering Morsels in Bellmore

Made on Long Island: Ronance Mouthwatering Morsels in Bellmore

1:32
Nassau Community College professors call on state to step in to help school survive

Nassau Community College professors call on state to step in to help school survive

Police: Driver arrested for fatal Brentwood hit-and-run

Police: Driver arrested for fatal Brentwood hit-and-run

1:39
Paws & Pals: Dogs up for adoption at Almost Home Animal Rescue

Paws & Pals: Dogs up for adoption at Almost Home Animal Rescue

4:39
Guide: Ways to help you identify and deal with work burnout

Guide: Ways to help you identify and deal with work burnout

1:49
Officials: Fire dispatcher's wife alerts him about blaze at their Centereach home

Officials: Fire dispatcher's wife alerts him about blaze at their Centereach home

0:32
State police: Trooper conducting traffic stop rear-ended on Meadowbrook State Parkway

State police: Trooper conducting traffic stop rear-ended on Meadowbrook State Parkway