Survey Results - Share Your Experience: Kansas City Nonprofits & SBA Loans
With funding for SBA Loans replenished last week, we know that many organizations are planning to apply. Through an online survey, we collected information from Kansas City nonprofits about their experience applying for SBA Loans. 168 nonprofits responded between April 23 and April 27. We’ve compiled the results so that funders, policy makers, and the wider community can understand more about the effectiveness of federal response for the charitable sector.
Question #1: Did your organization apply for any of the following SBA Loans?
Question #1 Results:
- 92.98% of respondents (156 nonprofits) applied for PPP (Paycheck Protection Program.)
- 16.96% of respondents (29 nonprofits) applied for EIDL Advance (Economic Injury Disaster Loan - $1k per employee)
- 9.94% of respondents (17 nonprofits) applied for EIDL standard (Economic Injury Disaster Loan)
- 4.09% of respondents (7 nonprofits) did not apply for any SBA Loan.
Question #2: If your organization did not apply, please explain what factors influenced your decision.
(We compiled some of the answers to this open-ended question.)
"Not enough time to apply"
"Just did not know when or where to go"
"We are a 501(c)6 and were not eligible for PPP."
"Board took too long to analyze "free" money from the government."
"Funds ran out before we had a chance to get our application submitted. We had planned on applying for the PPP."
Question #3: Did your organization receive confirmation for SBA funding?
Question #3 Results:
- 25.75 of respondents (43 nonprofits) did not receive confirmation of funding.
Question #4: How difficult did you find the application process?
Question #5: If you have not yet received confirmation of a lending agreement, or you did not apply in the first round of lending, is your organization planning to submit for the PPP when it becomes available again?
Question #5 Results:
- 31.58% of respondents (18 nonprofits) that did not receive funding, or did not apply in the first round, do not plan to reapply.
Question #6: Is there anything else you would like to share about your organization’s experience with SBA Loans?
"We submitted on day one. Our bank was not very nimble moving applications on to the SBA. We didn't get through the bottleneck. We elevated our application when we determined the regular process wasn't working for our organization. I contacted a senior vice president at the bank who acknowledged our organization’s long-term banking relationship and took over our application. She worked with us this past week to ensure everything is in order. Our application has been submitted to the SBA now, but we are nervously awaiting word on approval. I'm honestly worried that funds will run out again, even though we have done everything possible to position our organization favorably."
"We were extremely disappointed with the additional restrictions placed on these loans by the bank we have patronized for years. Since we did not previously have a loan, we were not eligible. Then, we were still not eligible because a different bank is our mortgage holder. Our mortgage holder bank was not ready to accept applications until 6 days after the program began. Had our accountant not already had a relationship with another bank, we are uncertain whether we would have received the loan."
"I filled out the application within hours of when it became available. Initially, we were told that we didn't qualify, but based on all of the information that I read, we did, indeed, qualify. I contacted our bank, and shortly thereafter, I received an email to let me know that that application process was opened back up to include additional entities. Again, I applied within hours of receiving the e-mail, and the application went through, and we quickly moved onto the next step in the process. At this point, our application is waiting to be submitted to the SBA for approval. Having said all of this, the bank we used created a tiered approach to this process, and nonprofit organizations were last in this process. As such, we weren't even able to apply until after it was opened up to many other categories. Therefore, we were last in line."
"We initially tried to go through a large national bank, but they kept telling us we were missing documents. There was no support to tell us which documents, so we assumed it never got submitted by that bank. So for the second round of funding we are going through a local/regional bank."
"It worked because I had everything done before the April 3 rollout, was in close contact with our bank, and just hit send early April 3. Approved April 5."
"[Local bank] was a great partner for us in getting the loan. They notified us about the opportunity, sent us the forms we needed, including updated forms as they came out. They called and talked us through the process and checked over our forms as we submitted them and told us what else we needed. They were really great to work with. They seemed invested in helping us succeed in getting this funding. [Local bank] has been a great partner for us throughout the process."
"We feel fortunate that our small community bank was processing these loans. They made the process very simple. I am concerned about the reporting process after the loan funds are utilized. The bank has very little information about that at this point."
"It's a great opportunity for nonprofits that have been impacted by the pandemic. We've worked with [local bank] and they have been good about handling the process. You should let your board members know that they will need to have an urgent board meeting as soon as the loan is approved. Generally, there's about 48 hours between learning that the funding has been approved and when you need to have a board resolution passed approving acceptance of the funding."
"We are grateful to be at a smaller bank who managed far fewer loan applications than banks like [large national bank.] I was one of 20 applications that my bank contact was processing based on conversation on the first day. A person I know who applied through [large national bank] stated that she was one of 100 with her bank contact."
"Having a good relationship with a local/regional bank is critical. We have a good relationship with our local bank and it still took three weeks for processing and a final answer."
"I will say our bank made it incredibly easy. But it was a locally owned, small bank. I think that was the difference that I saw in all the boards that I follow. Those organizations with relationships with large corporate banks were left behind."
15% of respondents (25 nonprofits) identified the difficult and constantly-changing process as a barrier to funding.
"The lack of guidance provided to lenders regarding the PPP application process for nonprofits and independent contractors is shameful. Claims to a "first come, first serve" program are dishonest. As disappointed as we were to hear that our application didn't make it in before the first round of funding was depleted, the stories I have heard from other nonprofit leaders have been frightening and heartbreaking."
"The EIDL application process was a bit cumbersome. Had to restart over a dozen times after getting some clarification on questions with the SBA support line. Several of the agents were not well versed in what to tell non-profits on the question of Business Ownership. The most frustrating was that the online application was not able to be saved as you go... so if you timed out or had to stop and come back, it required you to have to start again."
"I suggest organizations that have not applied, but plan to in the future, have all of their paperwork in order so that they can move quickly. Our bank originally required paper applications and then three days moved to an online application portal. I think we were successful because we submitted our application quickly."
"It was frantic. Although the application was not "difficult" and was not long, there was confusion about what payroll periods were acceptable, how to determine FTE that would be appropriate for timing of loan, how to answer as a non-profit and whether our bank going to be able to process the paperwork fast enough to allow us to benefit. The forgivable loan allows us to not furlough at this time. Money was granted quickly and now we are waiting for direction/details on the forgiveness portion."
"The process seemed very confusing and conflicting at the beginning. We had to re-submit 4 times before we got everything correct, and our bank agreed that it was a difficult situation. There were not clear directions on what comprised the staff reimbursement question. For instance, did this cover part-time personnel."
"It was a painless process! Our bank was great, and we had our funding within 10 days."
"There has been no communication about the status of the EIDL advance or PPP. It’s been a frustrating experience."
"It has been frustrating not receiving any feedback at all from our initial application bank. I put in a call today and they are looking into it."
"We applied for EIDL in three ways. Early in March we tried their online system, which was clunky. I followed up a week later, and filled out a PDF email version. Then when I checked back in I saw they had a new online form that included the advance. I filled out that one too. I have heard nothing."
"Received PPP funding-- have never heard anything about EIDL beyond a confirmation number."
Coronavirus ResourcesNonprofit Connect has compiled a list of considerations and resources for local nonprofits to be prepared, and we're updating the list daily. We're also providing virtual events for learning and connection.
Each day brings new challenges. Remember the reason we were drawn to do this work is to make a difference, even in the face of opposition.