SSN News Poll: Security companies struggling to get funding through the CARES Act

 - 
Wednesday, May 13, 2020

YARMOUTH, Maine—While the recent announcement of a second round of CARES Act funding for small businesses is good news, many are wondering if it will make it into the hands of the companies that need it most, as the first round of funding ran out quickly, with several problems reported.

Security companies in particular have been struggling to get approved to receive financial relief, evidenced by results from Security Systems News latest News Poll looking at the how the industry is making out when applying for assistance through the CARES Act.

One respondent summed up the first round of funding debacle, saying, “No stimulus check, no PPP funding. Bank says the SBA ran out of money before they got to me. Maybe wait for the next rollout of money? Ruth's Chris Steak House gets $20 million immediately!”

Looking big picture, an overwhelming 84 percent of respondents said that they have applied for relief or assistance through the CARES Act programs. Only 9 percent said they would not be applying, while 6 percent said they were thinking about it.

Of those that have applied, a whopping 77 percent had some trouble applying, with only 23 percent saying they had no trouble.

When it comes to actually getting an approval and funding, 50 percent said they had received funding, with 47 percent saying they were still waiting for an answer on their application. Only 3 percent said they were denied.

“The banks are confused about the rules and requirements,” said one respondent. “They are also biased against small debt-free companies and favor their larger customers with larger loans. This is because they are paid a percentage of the amount of the loan.”

Another respondent added, “First we were told to wait. We are having problems applying. Now we are being told money is running out. Should've been a blanket funding amount for each qualifying business, with checks sent automatically.”

While some respondents struggled, others had better luck, with one respondent noting that a good relationship with their bank helped to get them through a few initial issues in the beginning.

“I developed a case of ‘application deficit disorder,’ which sent me to special handling,” said one respondent. “It was my long-time relationship with my bank that got me through this. I'm not saying I got special treatment, but they never tossed me to the side. This underscores the importance of keeping that relationship whole and two-sided. My company and I were not a faceless entity to my bank.”