Frankie Randazzo has more than 200 employees in his companies. He says the documentation needed to apply for loans changes daily
BEAUMONT, Texas – A business owner in Southeast Texas believes some banks are making it difficult for small businesses to get the help they need to survive in the economy.
You might know Frankie Randazzo from Madison’s in Beaumont and Rikenjaks in Vidor.
âCurrently we have 7 locations, 2 in Louisiana and 5 in Texas,â Randazzo said.
With more than 200 employees, he told 12News he was denied the opportunity to apply for the payroll protection program through Compass Bank.
Randazzo says the bank did not allow him to apply because he did not have the correct documents. He says the requirements change daily.
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âI’ve said it beforeâ¦ this crisis has the capacity to change the local economy,â Randazzo said.
Last week, Congress allocated $ 349 billion for the program, which is an SBA loan that helps businesses keep their employees during the coronavirus pandemic.
The program was approved as part of the $ 2.2 trillion stimulus package.
Regional brand manager Robert Valvahno spent all day Monday searching for answers.
âIt always changes. You talk to one person and they say you need all of these documents, then you talk to another person and they say no, you needed them,â Valvahno said. “You know everyone is in a mad rush to get as much money as possible to survive and it is understandable that this is just what has been stated, no one has a full understanding of it yet.”
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This money would help Randazzo keep employees on staff. This is the primary goal of the Paycheck Protection Program.
âA local business, 16 in Beaumont, 25 in Port Arthur. And the people you work with become family, so when something like that happens, it’s unprecedented. There is no manual. for that, âRandazzo said.
So far, they still have not been able to apply for 3 of the 7 companies.
Randazzo is hoping his company wins in the end.