What Happened to COVID Loans from the SBA?

If you’ve filed for COVID relief through the SBA, then you might be wondering… what happened? Why did so many people in need never get the money, despite the most money given by the SBA in two weeks then in the past fourteen years. But now it is coming to a crashing halt, with the SBA not giving out loans any longer. Why did this happen? And what can you do to recover? 

Thinking about making changes to your business? ProStrategix knows how to help. Read some of our other articles below, or feel free to connect with us and get a complimentary thirty-minute consulting session.

What Do Burgers Have to Do with What Happened to the SBA’s COVID Loan Program?

The New York Times on Monday broke a story about how Shake Shack, Potbelly, Ruth’s Chris and more food chains have found a loophole in the stimulus package from Congress. The chains have found their way around the 500-employee maximum through franchising.  

Shake Shack announced that they would return $10 million they received from the PPP. This is after criticism from within and outside of the corporation. The Paycheck Protection Program, or PPPwas designed to help small businesses pay their workers during the Coronavirus emergency. Yet a loophole allowed larger chains to get some of the financing a bail out and leaving those most in need with nothing.  

The SBA exhausted nearly $350 billion in financing in two weeks, but Congress is looking to supplement an additional $300 billion. That money (and Shake Shack’s returned $10 million) might not be enough for the businesses truly in need. Especially if loopholes like these aren’t ironed out soon. 

This, on top of problems with registering for the site and confusion about the loans, continue the problems for the SBA. When we “Monday morning quarterback” what happened to the SBA during COVID, it will be all about looking at problems like these

How to Survive

If you’re wondering what to do and how to make it happen during COVID if you don’t have the SBA, we have some advice for you. We’ve gone through some of this before, but here are the highlights you need to know: 

  1. Check your local and state programs. You’ll find more stable (and hopefully more iron-clad) grants and programs that can help you.  
  2. Look for programs from places like Facebook that are offering grants. It might be tough odds to get, but it’s something.  
  3. Look into ways to maintain financial wellness and cashflow. It might be easier said than done, but it’s worth thinking about.  

It isn’t just the SBA, it’s the Fed and more that is suffering. What you can do is stay sane.


The SBA has reached a breaking point due to COVID – what happened is done. But your business still needs to survive. Talk to us and we can help you find solutions as this craziness continues. We’re here for each other.  

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