More federal dollars likely to come to Mid-Missouri after Senate approves billions for small business loans

COLUMBIA, Mo. (KMIZ)

After the initial funds set aside for small businesses and non-profits under the federal stimulus bill ran out last week, the U.S Senate approved a $500 billion coronavirus aid bill Tuesday.

Most of the funding, more than $300 billion, would go to boost a small-business payroll loan program that ran out of money last week.

The bill still needs to make it through a House vote, then it will go to the president for a signature.

According to the Small Business Association, before the first Payroll Protection Program funds ran out on April 16, lenders approved 1,661,367 loans equaling more than $342 billion dollars. There were 4,975 lenders across the country.

In Missouri, 46,481 loans were approved, giving more than $7.5 billion to businesses across the state.

Senior Vice President SBA Manager of The Bank of Missouri said they approved loans for businesses and organizations across the spectrum.

The Bank of Missouri approved 1,010 applications, meaning $102 million in funding which helped over 15,000 employees. Its average loan size was $101,000.

Bell said the formula for determining how much money went to larger business and smaller businesses looked the same.

"It really didn't matter what size the business was, they all needed the same help," Bell said. "They all lost revenue of some sort and they needed to keep their people paid."

The bank could not approve all of the applications it received before the funds ran out, but it has kept a list of applications to work on once the second round of funding comes through.

75 percent of the loans are to be used for payroll-related costs. Business must start spending the funds within eight weeks, and Bell said some are concerned because they are not able to open up under the stay at home order.

"Some of them are going to be paying their employees to stay home," Bell said. "But that was the purpose of this program, to get the money back into people's hands so they can pay their mortgage and they can pay their rent and utilities."

She said this also lessens the burden on businesses when they do eventually open back up, so the return of revenue can go to supporting the business.

"Things will be slow, but it will help them," Bell said. "They don't have to worry about trying to get caught up or having employees that can't come back because they found a new job."

John Gilbreth, the owner of downtown Columbia eatery Pizza Tree, said he had his application in on the first day he could, and received his loan.

Pizza Tree has had to cut back hours due to the slowdown, but the loan has helped them keep their employee's paid for lost hours, and even hazard pay.

"It's difficult, it's different, but we're still here doing it and we're pretty proud to still be here doing it," Gilbreth said. "We're really lucky to be where we are right now and we feel like we could operate like this for the foreseeable future."

He said he would apply for more funding if that became an option to help keep his business afloat.

"I think that would be a last resort, but I would apply quickly," Gilbreth said. "I would rather have it than not have it before it's too late."

Though this is a hard time for his business, Gilbreth said the crisis has given them a chance took look at what's really important for their employees and customers.

"It's hard to change the parts on a moving train," Gilbreth said. "This has really given us a chance to slow down."