The Tribune

A participant in the government’s $20m small business loan support initiative says many borrowers have been reduced to tears when approved for credit that will help pay staff.

Robert Pantry, founder and chief executive of Simplified Lending, said notes filled with words of tearful responses to learning a loan has been approved began pouring in almost as soon as the process began.

“The Business Continuity Loan Programme is a model of efficiency. It is literally saving businesses every single day. If ever there was a concern about the value of and need for this programme, the e-mails and messages we are receiving put any doubt to rest,” said Mr Pantry.

His company is one of several participating lenders in the facility administered through the Small Business Development Centre (SBDC). Low interest loans, repayable over a five-year period with no payments due for the first four months, are designed to enable micro, small and mid-sized businesses (MSMEs) to ride out the economic tsunami resulting from the COVID-19 lockdown.

“Usually, when we secure or grant a loan, we get signatures and a firm handshake,” said Mr Pantry. “But these are such emotional times that today we are getting the most personal notes of gratitude and relief with many mentioning the word ‘approved’ brought them to tears.”

“I am crying,” wrote one client. “Thank youuuuuuu is not enough. I could not sleep last night, I was so anxious about money. Wow.”

Mr Pantry said Simplified Lending’s staff of 23 is “working around the clock” to process applications in a programme he believes demonstrates that great efficiency can be achieved when the public and private sectors unite.

“The proof is in the speed with which decisions are made, applicants are informed and the responses we are getting,” he said. He showed reply, which said: “I would like to take this time to thank Simplified Lending Ltd at this time for approving our loan. I can now pay my wonderful staff and pay our office bills. I would also like to thank the hardworking staff at SBDC.”

Another added: “Amazing!!!!! Oh man, Going to sleep like a baby. Thank you very much. All my staff got paid. They are on their way to the food store. Life changing for 26 people.”

That was another client, Mr Pantry said, who was “brought to tears” when she was notified of her approval, at least the fourth in a week.

“We are working through hundreds of applications, securing the required documentation so we can approve and disburse funds,” he said. “We are working around the clock, and accepting applications and interviewing clients over the phone, using technology to be able to accept, vet, approve and disburse loans even during the complete lockdown.

“All of our staff are working from home, including our back office administration team, in an effort to ensure the process remains seamless as possible for the client.”

The government established the $20m initiative to assist businesses with fewer than 50 employees, a record of current licensing, and evidence of sustainability once the crisis has passed. Funds are allocated according to staff numbers and revenue, with the maximum loan amount being $300,000. The programme was also recently amended to allow 50 percent of staff salaries to be given in the form of a grant up to a maximum of $20,000.

“We are still processing mortgage applications and other loan facilities,” Mr Pantry said, “but the business continuity programme has dominated our time because it is so important to keep some level of commerce afloat. Two of our early successful clients rely almost 100 percent on the tourism industry, a woman-run taxi service and a well-established souvenir company.

“With borders closed, hotels shut and the cruise port empty, they and all their employees were left with nothing but a good reputation to fall back on, and reputations do not pay staff or buy bread at the store.

“We were pleased with the assistance of the very efficient Small Business Development Centre and responsiveness by the government to be able to assist them. Now we are confident that they will be back on the move as soon as the economy starts.”