How 7 Small Businesses Got CARES Act Money Quickly

The first round of CARES Act funding dried up last week, and a lot of that money didn’t make it into your hands. But that’s not the whole story—some of you did receive the funds you need to keep your businesses running. In fact, eight percent of businesses who indicated that they applied for CARES loans received it, according to data from our most recent poll. 

We wanted to know these stories to give others who are still waiting for approval or are waiting for more government funds insight into the process. 

Read on to find out how seven businesses in different industries secured CARES Act funding and three takeaways that might help you acquire money once the second round of funding is available. And that should be soon, as additional funding was just approved.

7 Business Owners Share Their CARES Act Loan Stories

The below stories came from Alignable members who replied to our poll. Among them are businesses in some of the hardest hit industries: restaurants, salons, real estate, and more.

See what their process was like and what we learned about the program as a result.

1. Delaying a day for more money

We can keep our staff paid and make our rent payments on time.

The first story comes from Scott Korbin, a realtor out of North Carolina, who received money exactly one week after he applied for it. 

Scott applied for the Paycheck Protection Program through a local bank on April 6th. The process, for the most part, was smooth. The only hang-up, which delayed him by one day, resulted in a bigger loan. 

“The Underwriter increased my loan amount to include my SEP IRA deduction—a pleasant surprise. It delayed the approval process by a day, but I was glad to have the additional funding,” Scott says.

After he submitted the application, Scott found out that he was approved via a call from his lender letting him know that paperwork was on its way for his signature. Once he signed the forms, the funds were deposited into his business operating account, and Scott could breathe a sigh of relief.

“We can keep our staff paid and make our rent payments on time,” he says.

Scott thinks using a local lender made all the difference. “Immediately open up a business account at a local bank,” he says. He suspects that “having an existing relationship with the bank” makes the process much easier.

• Find a PPP lender using the SBA’s list of approved lenders
• Look for highly-recommended SBA lenders on the Alignable platform if you don’t have an existing lender

2. Smooth sailing with a local bank

Following a similar path, Jason Cornell, the owner of Anchor Security and Locksmith in Cornelius, NC had a low-stress experience applying for the loans as well. “The process was extremely easy,” he says. “We didn’t have one issue.”

Jason also applied through a local bank and received money five days after he submitted the application. He was notified by email and saw the funds in his account a day later. 

To Jason, that means his business can continue to stay open and to serve his customers.

“The funds help us to maintain the level of quality service that our customers are used to, even though work has slowed down due to the closure of most businesses in our service area. We are still open and available to assist in any way we can.”

To track his company’s use of the funds and avoid needing to repay the loan, Jason uses a separate account. He transfers money from that account to another account each week to cover payroll for all of his employees. 

Like Scott, Jason attributes his ease of access to his local lender. He’s spoken with other businesses who haven’t been as lucky, “Most of the businesses I have spoken or chatted with have been having issues with their individual banks,” he says. 

“[The businesses] that had no issues were the ones dealing with small local banks.”

3. Confusing but critical to keep her business open

It will keep Luxe in business, and 22 years in, that feels like a great thing!

Unfortunately, the process wasn’t easy for everyone. “It was the most stressful thing I’ve done in a  long time,” says Laurie Helmick of Luxe Salon in Denver, CO.

Laurie applied for the program on April 3rd using a larger bank that operates in multiple states. There was confusion around the requirements that made the process more complicated. “It was challenging because the rules kept changing,” Laurie says. 

“Initially, I didn’t need additional documents to verify payroll, but then I needed 940s. In a mad dash scramble. I had to refill out the whole application because I rounded off payroll,” she says.

Thankfully, the representative from her bank helped to ensure that she had the right paperwork and sent the application in. Once she sent in the application, she was approved two days later and saw the money in her account five days after that. 

“My loan officer called me on the 10th with the electronic loan documents, which I signed immediately. The funds were in my account in less than an hour,” she says. 

Despite finding the process stressful, Laurie is grateful for the relief. “The funds mean that I can provide two months of pay to all employees at their average wage, no matter when we open. It means two months of rent and utilities paid for the business,” Laurie says. 

“It will keep Luxe in business, and 22 years in, that feels like a great thing!”

If you’re planning on applying for the second round of the program, Laurie suggests that you stay calm and be prepared. “Call and ask questions as much as you need to. Have your payroll reports ready. Know your business. Breathe,” she says.

Related content: Updates on CARES Act Relief

4. Providing job security and paving the way for future growth

We chose to go with our credit union due to their great support of small businesses like ours.

Christian De Ramos of 2CT Media in Mesa, AZ was just hitting his stride when the crisis took off. “We were on an upward trend before all of this hit,” he says. Having hired three new employees this year, he applied for the program right away in an effort to keep his staff.

“We applied for the PPP loan on April 4th as soon as our bank went live,” Christian says. 

When it came to choosing a lender, Christian had relationships with two different banks: a national one and a regional credit union. He chose to apply with the latter. “We chose to go with our credit union due to their great support of small businesses like ours,” he says. 

The application process through the credit union was simple. Like others, it took about a week between the day he applied for the program and the day the money arrived in his account. 

The money, which is going all to payroll, helps Christian’s business run with full staff and makes it possible to create future plans. “The funds have allowed us to maintain our team members’ job security and give us the ability to focus on future growth,” he says.

When it comes to the process as a whole, Christian recommends that others consider their lenders before applying. “Evaluate your banking relationships,” he says. “Try to find a bank or credit union aligned with your values and willing to support you through the various financial needs businesses face.”

5. A pleasant experience in trying times

The turnaround time was incredible!

Despite the public confusion of this program, Chris Bender of Da Vinci’s restaurant in Williamstown, WV found the application process a piece of cake. “This was the easiest loan process ever,” she says. 

Like Christian, Chris had a few different lender options, as she has relationships with different banks for her business and personal accounts. After trying a national and community bank with little luck, she finally approached her credit union. “I called my credit union, not having the highest of hopes,” she says. Thankfully, she was wrong.

Her credit union was ready to help and was proactive in moving her forward in the process. “Over the course of the few days before sending in the application, I was actively approached by the credit union wanting to help with the process,” she says. 

With their help, she applied on the first day the banks began accepting applications and received her money in less than a week. “The turnaround time was incredible!” Chris says. 

“I presume part of the ease was my lender's willingness to help. In fact, not only was she willing, she was aggressive!” 

Chris’s story reiterates the importance of good banking relationships and of using local or regional banks to help with the process if you can. In addition, Chris recommends preparing in advance when more funding becomes available. “Have paperwork ready to submit as soon as it opens,” she says.

6. Preparing ahead paid off for an essential business

Considered an essential business, Annie’s Apothecary, a compounding pharmacy in Boerne, TX, has stayed open through the crisis, despite fluctuations in business. “We are an essential business so we must remain open with fixed employee expenses,” says owner Dr. Leigh Ann Greenberg.

To keep her employees’ income consistent, Dr. Greenberg applied for the Paycheck Protection Program the day it went live. She, too, decided against working with a national lender. 

“I used a local bank whom I have done business with for almost 13 years. Although I could have gone with a national bank, I’m glad I didn’t,” she says.

The process went relatively smoothly, but she did have to provide additional information before she could apply. Luckily, she was able to respond quickly, avoiding application delays.

All in all, it took seven days from approval to dispersal. The funds will help her pay her employees and ease her stress. “It takes the stress off of me when our business is not as consistent as it used to be. It also puts my employees at ease knowing they will get full paychecks regardless of business,” she says.

To keep her records as clear as possible and ensure loan forgiveness, Dr. Greenberg is tracking how she spends the loans meticulously. “I created a separate short term liability account in my QuickBooks and also an income account for PPP loan proceeds,” she says. 

“I make a journal entry between the two accounts with documentation attached each time I spend it on qualified expenses."

As for advice, Dr. Greenberg echoes the other business owners: “I would highly suggest working with a personal banker that you have a relationship with because they are more likely to address your needs,” she says.

7. Different experiences for different CARES loans

Mrs. DeHaven’s Flower Shop in Tulsa, OK decided to take advantage of two funding options made available to small business owners during this crisis—the COVID-19 Economic Injury Disaster Loan and the Payroll Protection Program. 

Each process was a little different and resulted in different outcomes, according to Mark Burton, the company’s CFO.

Like most of the other businesses, Mark applied for both programs through their local bank. “The application process for both loans was fairly easy for us, as our bookwork was up-to-date,” he says.

They submitted the application for the PPP loan on April 5th and were approved within one business day. After signing the paperwork, Mark received the funds the same day. “It was a breeze and went extremely well,” Mark says.

They’re using the funds to pay their staff, for rent and utilities, and for an unexpected expense. “As it so happened (under the category of ‘when it rains, it pours’), our commercial air conditioning unit decided it was done, so a good portion of the loan went to replace it,” he says.

Mark is tracking their use of the money through a separate loan account and doesn’t seem concerned about forgiveness. “Even if you don’t plan to use it for payroll, it’s still worth applying,” he says.

As for the disaster loan, Mark’s still waiting. “We heard that we should expect to receive the disaster loan within 48 hours. However to this day, we’re still waiting on it,” he says. “Upon calling to learn the status, we were simply advised to be patient.”

Now that more funding is on its way for both programs, we hope Mark and other businesses like his receive the cash soon.

3 Top Takeaways

You might have noticed common themes in the above responses that could help your business apply when the second round of funding becomes available. Here’s what we learned. 

Local or regional banks work best

Most of the business owners we talked to applied for, and thus received, funding through a local or regional bank. 

In their responses, they emphasized the importance of working with a lender they trust and have a good relationship with. Karen Mills, former chief of the SBA, also recommended that you work with your existing banks if you can.

Get her recovery tips and other CARES insights

Find an SBA-approved lender

Apply early and be prepared

Most of the businesses who shared their stories applied for the program as soon as it became available through their lender. Having their paperwork in order and being prepared in advance made the application process easier for them. 

Keep track of the money 

Tracking the use of funds will be easier if you have a separate account, like Jason. If it’s confusing to do so at the set up, ask your lender for other ways to keep record of how you’re spending the money. 

Some of our interviewees use external vendors who can categorize their spending, while others set up multiple separate accounts to track each lane of spending associated with the loan. 

More money is coming

The president just approved more money for the Paycheck Protection Program among other initiatives. We’ll keep you posted as we learn more about what that means for you if you’ve applied already or have yet to apply. 

In the meantime, reach out to your bank for questions relating to your application and the process for round two. 

If you applied for CARES Act funding, what was your experience like? Did you receive money? Tell us your story in the comments.