NORFOLK, Va. — Right now, the Small Business Administration is not accepting new applications for some COVID-19 relief loans and it’s due to a lack of funding.
Thousands of Hampton Roads business owners have applied and some have even been approved for an SBA loan.
Towne Bank is one of many local banks taking on those loans for business owners.
"In our area, the 5,000 businesses that we helped had 117,000 employees," said Davis.
Business could be better at Granby Street Pizza in Norfolk. Owner Peter Freda is doing what he can to stay open with limited employees.
“We only have a staff about four right now as opposed to 12 or 15," said Freda.
Freda applied and was approved for the SBA Paycheck Protection Program loan.
Another business owner wasn't so lucky. Since SBA is not accepting new applications due to a lack of funding, Rhett Rebold has started to believe he may not get his loan for a long time.
Rebold owns Vibrant Shores Brewing Company in Virginia Beach. He applied for the Economic Injury Disaster Loan Emergency Advance loan. This is one particular SBA loan that business owners can no longer apply for right now.
“Even though I put it in two-and-a-half weeks ago, it’s probably on the slow track pile which is even slower I guess if they're already out of money," said Rebold.
Bank owner Davis explained people should not panic. Local loans will be available.
“The government approved a facility that is going into effect this week where the banks will be able to go borrow money from the government, pledging these loans be made as collateral, so we will be able to replenish our cash and have that money available to lend to businesses for other purposes," said Davis.
Business owners hope the government can come up with another plan soon.