Small businesses race to get PPP loans applications in before midnight deadline

Small businesses on Long Island and across the country were racing the clock Tuesday to get their applications in for federal money from the Paycheck Protection Program ahead of the midnight deadline.

News 12 Staff

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Jun 30, 2020, 10:21 AM

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Updated 1,635 days ago

Small businesses on Long Island and across the country were racing the clock Tuesday to get their applications in for federal money from the Paycheck Protection Program ahead of the midnight deadline.

This is the second round of the federal program, which went much smoother than the first. After the PPP was first announced, there were tremendous backlogs and many mom and pop shops felt like they were shut out of the process.

MORE: Apply for the Paycheck Protection Program

Kevin O'Connor said his workers at BNB Bank would be filing applications right up until the deadline. He said the bank has secured about $1 billion for Long Island companies and that those loans saved up to 100,000 jobs. “There’s more work to be done," he added.

“This is effectively free money and it's the lifeline we've been talking about. We want to get it out there,” said O’Connor.

On the final day, the PPP was said to have about $100,000 billion left to loan out.

The program started April 3 and has provided guarantees for almost $519 billion in loans from banks and other private lenders, according to the Small Business Administration and the United States Treasury.

News 12’s Caroline Flynn was on Main Street in Farmingdale earlier Tuesday, where neighboring businesses that received financial relief through the PPP had different experiences. Business owners agreed though that those who’ve struggled through the process should not give up.

VIDEO: Time is running out: Today marks deadline for small businesses seeking PPP funds

David Fabrizi, owner of Main Street Pizza Company, said, “It was a good safety net for us— to know the government had our back and made sure that we are open and everyone was taken care of.”

Main Street Pizza Company had only opened its doors six months before the pandemic hit Long Island. He said he received money from the PPP during the first round of the application process.

He added, “For us, it went toward making sure our staff was paid and their families were taken care of.”

Down the street, Charlotte’s Desserts struggled to get the loan. It wasn’t until the third time they applied with the guidance of another Farmingdale business that they got approved.

“Everybody seemed to get the loan except for us. Then the next wave came, and we reapplied and we did everything we were supposed to do and nothing happened, so we figured the little guy doesn’t get any attention. Basically we just kept trying— we tried everything,” said Nick DeVito, owner of Charlotte’s Desserts.