PITTSBURGH – A small Pittsburgh business found itself in trouble after its bank sent a notice it should repay its loan from the Paycheck Protection Program that has helped it stay afloat during the COVID pandemic -19.
PPP loans have been a lifeline for many businesses during the pandemic. The owners were promised that they would not have to refund the money if it went to their employees.
Clean Day Housekeeping in Pittsburgh was one of more than 11 million businesses nationwide to obtain a P3 loan. The owners told Channel 11 they explicitly used the money to pay the workers. But several weeks ago, PNC Bank said only a portion of the $ 31,500 it had borrowed would be canceled.
“Stunned. Just completely stunned. I do not understand. If you take out a loan on your house, they don’t come back a year later and say we’ve changed our minds on how it’s going to be paid off, ”said co-owner Jessie Belonzie.
PNC Bank would begin automatically withdrawing funds from Clean Day Housekeeping’s business account to repay the loan starting Wednesday. Belonzie said they were rushing to put their money in a new account with another bank and said they would not pay until they got more information.
The homeowners said the only explanation they can find for why the loan was not canceled is a passing comment from a loan officer who said the bank may have extended too much.
“The money was given to the banks and maybe they gave too much money or pledged money to companies like ours. And now they’re trying to get it back.
According to the latest data from the Small Business Administration, about 6% of businesses that request a loan forgiveness don’t get it. But around 6 million businesses haven’t even applied yet. The SBA has yet to answer our questions.
Channel 11 has contacted PNC Bank for comment. A spokesperson released this statement:
PNC does not comment on loans or relationships with individual clients. We comply with applicable SBA rules and guidelines with respect to decisions regarding the cancellation of PPP loans. If customers have any questions about the PPP loan forgiveness process, we encourage them to visit the PPP page on pnc.com, where detailed information and additional resources are available.
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