The Hoot Judkins Loan Journey: Four Weeks to Success
Bobby Watson, co-owner Hoot Judkins Furniture in Redwood City, Calif., would like to share their loan application experience with other members of the Home Furnishings Association. Since March 17, the store is only open for “contactless purchases by appointment.” Contactless pickup and delivery available.
On that day, Watson also launched his efforts to obtain a loan through the Small Business Association. Here is his account:
The 17th of March: We applied for the SBA Economic Disaster Loan.
April 2: Our request was assigned to a specific SBA Loan Specialist and we were able to communicate with him, in a timely manner, by email and phone calls. He requested and obtained various other information and documents.
The second loan application
April 3: We applied for a Paycheck Protection Program loan directly from Bank of America.
April 5: We have been notified by email that our loan has been approved. We were loaned an amount equal to 90 days of historical operating expenses. This is a 30-year loan, with 12-month deferred payments. The interest rate is 3.75%, with no prepayment penalty. We were told we may contact the SBA in the next few months to request an increase in the loan amount, but that would require further investigation of our finances.
April 6: Bank of America has requested all of our supporting documents for the PPP loan application.
SBA Case Manager calls
April 7: I got a call from an SBA case manager. She provided me with her contact details and explained that she was available to answer any questions about the fundraising process. She said we should expect the loan documents to be mailed out in three to five days, maybe sooner by email.
About two hours later, we received an email stating that our loan documents were ready to be downloaded from the SBA site. There were about 30 pages of information that needed to be reviewed. The language was clear and easy to understand. Many signatures were required from the president, vice-president and secretary of our corporation. We were required to make a UCC filing with our Secretary of State’s office (done online).
Documents and more documents
April 8: The entire package has been scanned and emailed to a specific email address. We were told that an initial amount of $ 25,000 would be funded (electronically) within three to five days. The original “wet signed” documents were sent by express mail to the SBA. We were told that the remaining loan amount would be funded (electronically) within three to five days of receiving the original documents (assuming we did everything correctly).
April 11 : The SBA loan officer was funding the loan today. She said it takes three to seven days for the funds to be credited to our account. We received another call from Bank of America asking if all of the supporting documents for my PPP loan had been uploaded. It was a double call to the one I had previously received.
April 14: The funds were in our account this morning. Exactly four weeks from the day we applied. Still no word on the PPP.
“A huge relief that the funding has come”
“It’s a huge relief that our disaster funding has finally arrived,” Watson said on April 14. “I hope our PPP loan is not too far behind. We believe that the government assistance we have received will ensure the employment of our staff and the continued operations of our store. Of course, there is still more. a lot of uncertainties we face… like when can we actually reopen? under what conditions? and how soon will customers get back to us?
“It is very encouraging that even though we have eliminated 95% of our advertising, our website has only experienced a 40% drop in the number of visitors. There is still a large demand for our products. People are just waiting for our doors to open.
Update: Since this was originally published, the Economic Disaster Lending Program has run out of funds. He then received more money, but as of April 29, he is not accepting new applications as current applicants are expected to exhaust the available funds again.