PPP loans help small businesses triumph in the face of Covid-19

After driving nearly 4,500 miles across five states to visit countless small businesses, I have seen firsthand a common thread connecting entrepreneurs— a resolve to triumph in the face of Covid19. Like nothing else since the Great Depression, today’s coronavirus pandemic threatened to shut down the nation’s economy, as small businesses began to feel the impact of Covid closures.

President Donald Trump signed into law the CARES Act, standing up an extraordinary, unprecedented Paycheck Protection Program (PPP) loan. And, just seven days later, the U.S. Small Business Administration (SBA) began partnering with more than 5,500 lenders to provide $525 billion in forgivable loans to 5.2 million borrowers.

With a funding level nearly equal the budget of the U.S. Department of Defense, PPP loans began stabilizing the American economy, saving jobs and giving job creators time to think, pivot and prepare for their next move.

On the road, I heard story after story of entrepreneurs overcoming this global crisis with the help of the PPP. I was inspired by Phil Archuletta, owner of P&M Signs Inc. in Mountainair. Once government shelter-in-place orders took effect, shutting down all non-essential businesses, Phil was relieved to find out that because he was doing work fabricating signs for the state’s department of transportation, he wouldn’t have to shut down, as he qualified as an essential business. The relief didn’t last long though, as not all essential agencies were quick to remain open.

“All the state agencies and federal agencies had shut down.” Phil said. “So now, with all the revenue streams shut down, I thought ‘Oh wow, we’re going to be in trouble now.’”

Without a stream of revenue to pay his employees, Phil couldn’t process orders to support the New Mexico government with signage for the state’s anti-covid campaign. He kept his ear to the ground though and heard the beginnings of what would become an economic relief effort.

“I was listening to the President talk about possibly putting together a relief package, so I went and put together a loan packet in case there was something that became available.” Phil added. “Once the President signed everything into law, we immediately applied for a PPP loan.”

After contacting the SBA’S New Mexico District Office, Mr. Archuleta learned he was one of the first to apply for the PPP loan and one of the first to receive funds. During that time, P&M signs received a project to construct road signs to aid the local Native American community in its fight against Covid-19.

“Working with United Business Bank and the SBA was easy. I had my funds within a week and was able to not only pay my current employees, but also hire three more.” Phil said. “I’m very thankful to the SBA and the work our government has done to allow us to continue to do business. In the rural communities, a company like mine is big for the community. So, when we get a shutdown like this, this kind of assistance given is big. I know that I, my employees, and the town of Mountainair are very thankful.”

Entrepreneurs in rural Mountainair— population 863—were approved for 19 PPP loans affecting nearly 100 local jobs and two nonprofit organizations. The emergency loan program reached across geographic locations, economic regions, including rural and underserved communities, and all industries.

In addition, 90 SBA loans were approved in Edgewood, saving a reported 417 jobs. That's along with 56 loans in Moriarty, and 754 jobs; 10 loans in Estancia and 35 jobs; four loans in Mcintosh and five jobs; and one loan in Tijeras, and 18 jobs.

Now, what’s important for many entrepreneurs is the forgiveness portion of the PPP. Congress has agreed to forgive the PPP loans if certain requirements were followed. SBA began accepting applications for PPP loan forgiveness from lenders through the forgiveness platform on August 10. Once SBA receives an application from the lender, the Agency has up to 90 days to review request. The SBA will continue to work with our lending partners and PPP businesses to make the loan forgiveness process as simple and efficient as possible.

I plan to continue on the road meeting with small business owners and lenders throughout the South Central Region to hear their successes and challenges, and find out what more we can do as an Agency. Although the future may still seem uncertain for many of us, one thing I know for sure—it is not in the DNA of the American entrepreneur to cower and hide in the face of adversity. For more information about how SBA can help, visit sba.gov.

Justin Crossie is the regional administrator of the U.S. Small Business Administration’s South Central Region VI, serving, Louisiana, Arkansas, Texas, Oklahoma and New Mexico. Follow us on Twitter @Sbasouthcentral.)