Metro Atlanta Nail Salon Owner Discusses Being In Loan Limbo, Confusion And Federal Funds
Chateau de Nails, is a nail salon in Alpharetta. The owner of the salon, Jenna Cao, spoke on Morning Edition about small business loan confusion and uncertainty amid coronavirus.
Courtesy of Jenna Cao
Gov. Brian Kemp’s order that some Georgia businesses can start reopening this Friday could not have come at a better time for local nail salon owner Jenna Cao.
She is one of many metro small business owners who is struggling due to the COVID-19 pandemic. Cao has owned her Alpharetta salon for more than a decade.
The governor’s announcement this week gives many businesses, including gyms, fitness centers and beauty salons, the green light to start serving customers – under social distancing requirements. Restaurants and movie theaters are set to open next Monday under Kemp’s plan, but bars and other entertainment sites will remain closed for now.
Kemp referred to guidelines from the Trump Administration when he announced the steps to spark Georgia’s economy during the pandemic.
But Cao, who is trying desperately to stay afloat, is sick of those constantly changing, and confusing, guidelines. While there are small business loans designed to help, Cao has found the paperwork tedious, confusing and the wait agonizing.
“I have applied for a couple of SBA loans,” Cao said, referencing the U.S. Small Business Administration’s Economic Injury Disaster Loan of up to $10,000 and the SBA’s Paycheck Protection Program. Those are loans designed to help business owners like Cao recover from the temporary loss of revenue.
Yet, Cao said she still doesn’t fully understand how or when the loans will be dished out, and said sources have given her misleading information. She talked about how she recently got an email that her grant application had been processed.
“Now they say that grant pays every employee $1,000, but it doesn’t say where I can use it for rent,” Cao said.
“When you get the email, you think you’re going to get all this relief and help, but really they’re not giving you anything.”
Now when desperate business owners click on the SBA Economic Injury Disaster Loan link, new applications have already been cut off “based on available appropriations funding.”
SBA officials say applicants like Cao will continue to be processed on a first-come, first-served basis. That means more wait time.
Cao sat down with “Morning Edition” host Lisa Rayam to talk about the situation leaving many small business owners in limbo.
Lily Oppenheimer contributed to this report.
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