By Lisa Kava

Many local business owners are struggling financially after being forced to close in March due to Covid-19. With the loss of income, some applied for loans to pay their ongoing rent and bills, but were turned down — or turned off by the difficulty of the process.

Now, it could get easier. Whereas the first round of government relief funds for small business loans was quickly depleted — in some cases by businesses it wasn’t meant to help, like the L.A. Lakers (who later returned the money) — the second round has more than $126 billion left to lend to small businesses as of the beginning of May. Sixty billion dollars of that is earmarked for community and regional banks.

In addition, New York State just launched its own small business lending program, called “NY Forward Loan Fund” (NYFLF). The loans will focus on small businesses, nonprofits and small landlords who did not receive federal relief. Instead of having up to 500 employees, as with the federal loans, these will require businesses to have 20 employees or less. Applications will be accepted starting at noon, May 26th. For qualifications and an application, click here.

It didn’t come easily, but Chris Fernandez, the owner of X93 Fitness, a small private training facility on Amsterdam and West 93rd Street, recently got what is commonly called a PPP (Paycheck Protection Program) loan, which is part of the $2 trillion federal stimulus package known as the CARES Act. Since the shutdown, Chris has been conducting virtual training sessions; on a computer screen he guides clients through a weight-training routine using their own body weight, ending with a 15-minute cardio workout. But only approximately 50% of his clients are participating.

“It is just enough to pay my home mortgage and put food on the table,” said Chris, who is the father of two children, ages 9 and 7, and whose wife is a nursing school student. They live in Wayne, New Jersey. “But I cannot afford to pay my landlord the full rent on my studio. I don’t want to lose my home and I need to feed my family.” He offered to work out a payment plan with his landlord, but has not heard back from him yet.

Chris applied for the PPP loan, which is forgivable at the end of eight weeks if you fulfill certain criteria, through his bank, JP Morgan Chase. Chase denied his initial application, saying he had not submitted enough proof of payment for his two contract employees. Chris applied a second time, submitting 1099 forms for each employee. He was denied again, for reasons he still doesn’t understand. It was at that point that he wrote to WSR:

“Every time they say they are helping small business, I immediately file, but never any luck. Chase denied me because I didn’t do my 2019 taxes, which are due July 15th. So now I submitted all to my accountant to do. What help are we getting? Only help I see is the Upper West Side residents trying to keep local business afloat with some business I am forever grateful for.”

West Side Rag reached out to Chase for an explanation of the denials. A spokesperson said that Chris had indeed filed the wrong forms. “Per guidelines from the federal government, in order to be approved for a loan under this program each employee must file a W2,” said the spokesperson. “Because the employees did not file W2 forms, he was denied.”

The next day, a banker telephoned Chris encouraging him to reapply, but as a sole proprietor. The banker suggested the contract employees apply individually as well. So, Chris applied a third time and his PPP loan was finally approved.

“JP Morgan Chase has helped 239,000 businesses get Paycheck Protection Program loans, including more than 51,000 in New York State, and we’re not done yet. We’ll keep processing and submitting applications to help as many small businesses as possible,” the spokesperson emailed WSR.

“It is nowhere near what I need, but it is something,” Chris told the Rag. “I thank you.”

Chris also applied for a private loan from LendingClub, which he had successfully borrowed from in the past to purchase gym equipment. “I received a $100,000 loan and paid it back on time,” he said. Now, he was quickly denied. “The broker told me gyms have a greater chance of failing due to Covid-19.”

A LendingClub spokesperson told WSR, “LendingClub is a marketplace that brings investors and borrowers together. Unfortunately, due to Covid-19 we’re unable to match all borrowers with investors. When the market returns to normal loan funding may become more readily available.”

Chris still faces an uphill financial battle. “What kills me is what is going on in Manhattan,” he said. ”I do not know what will happen to small businesses. I am just one of so many going through this right now. If it weren’t for some UWS clients training from home, my business would be shut down for good.”

“Working out with Chris allows me to feel connected to what life was like before everything shut down,” said one customer, Patrizia Di Maria. “I would do anything to keep that place going.”

“I have been a client of X93 Fitness since they opened,” said Abby Rubin. “They aren’t just wonderful trainers, they are friends — family. It’s important that we look out for each other and help however we can. The neighborhood needs these small businesses, which are really struggling during this time.”