Chase Bank Flashes in Paycheque Protection Program Showdown with Seasonal Small Business Long Island Restaurant Owner
Mallios had requested an increase in his initial PPP loan of $ 125,000 initially granted in March, which would correctly reflect his peak summer payroll for the June-August season.
PPP loans are tied to a 12 week pay period used by small businesses when submitting their applications.
Chase previously refused to grant Mallios the request, but on Tuesday the bank did an about-face.
“We are submitting the request for the raise,” said a representative from Chase. “The paperwork is in progress.”
Mallios confirmed that Chase asked him to reapply for the loan at the end of last week and that he was under the impression that an extension would be granted.
“Yes, I think it’s a good faith effort on their part to rectify their efforts, ”he said. “Do I sense that there are other people in this situation?” Yes. Every seasonal business is in my place and I appreciate that they have changed their minds. ”
Chase explained to Fear that the initial rejection of Mallios’ extension stemmed from a change in guidelines from the SBA, which may not have reached the branch that worked with Mallios and denied his request on May 20.
“We would love to be able to accommodate all of our clients looking for raises, but the SBA program rules and the stubborn schedule make it difficult to meet the large number of expected requests, on time,” said a representative from Chase.