The Pittsburgh small enterprise says the financial institution is forcing it to repay the Paycheck Safety Program mortgage – WPXI
PITTSBURGH – A small Pittsburgh company was embarrassed after its bank notified it had to repay its loan from the paycheck protection program that helped it stay afloat during the COVID-19 pandemic.
The PPP loans have been a lifeline for many businesses during the pandemic. The owners have been promised that they will not have to repay the money if it goes to their employees.
Pittsburgh Clean Day Housekeeping was one of more than 11 million companies across the country to receive a PPP loan. The owners told Channel 11 that they had specifically used the money to pay the workers. However, a few weeks ago, PNC Bank said that only a portion of the $ 31,500 they borrowed would be given away.
“Speechless. Just completely stunned. I don’t understand. If you take out a loan for your house, they don’t come back a year later and say we changed our minds about how this should be paid back,” said co-owner Jessie Belonzie.
PNC Bank wanted to automatically withdraw funds from Clean Day Housekeeping’s business account from Wednesday to repay the loan. Belonzie said they would transfer their money to a new account with another bank and said they would not pay until they got more information.
On WPXI Tonight at 11pm, Angie Moreschi of 11 Investigates will receive answers from PNC Bank and Small Business Administration as to why this company is being forced to repay part of its loan.
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