Salon owner hits walls with small business money

CLOVIS — Lisa Holt just wants to cut hair.

She has made her living at it for 25 years and has owned Main Street Barber Shop for almost 20. But Holt, like every barber shop and salon owner in New Mexico, was ordered to close last month under the stay-at-home order by Gov. Michelle Lujan Grisham.

While Holt waits to re-open, which won’t happen until at least May 15, she is trying to get money that is supposed to be available to small-business owners through the CARES Act. The government program allocated trillions of dollars to help make all people, especially small-business owners and the self-employed, whole again.

But when Holt applies for the money, she keeps running into metaphoric brick walls.

Holt tried the Payment Protection Program and was first informed that she would soon receive an amount, then after waiting for that, her status changed to “Your application has been received. We appreciate your patience. You will receive an email when a decision is made.”

Late last week, still nothing.

“I understand what’s going on (with the COVID-19 virus). I understand that,” Holt said. “But you can’t just leave us hanging like that. It’s been bad.”

Holt also tried for an Economic Injury Disaster Loan, which offers up to $1,000 per employee. “And I did not get that,” she said, “because they’ve run out of money.”

Though the PPP was supposed to infuse $350 billion of forgivable loan money, and more funds were made available through economic injury disaster grants worth up to $10,000 each, many small-business owners and the self-employed are struggling just as much as Holt to claim the money.

According to CNN Business, the PPP and grant program have been, nationwide, a source of more frustration than help for many of those eligible.

“The execution of both programs was hobbled by confusion, crushing demand, technical problems and frequent changes in guidance on the rules for aid and eligibility,” a CNN Business article states. “Then the funding ran dry.”

Congress agreed last week to $310 billion and $10 billion more to the PPP and grants program, respectively. But what about the money people like Holt already tried to claim? And will Holt run into more frustration with the new money when it becomes available?

She is certainly tired of the go-round.

“I’ve applied for everything,” she said, “and I qualify for everything.”

Holt said she was on the phone with her bank last Sunday, getting all the necessary paperwork and financial information ready to apply again.

“But that’s nothing different than the first time,” she said. “I applied Day 1. As soon as things are open, I apply.”