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Dr. Sanul Corrielus tried to get a PPP loan from two different large banks, last spring, when no one was coming to his cardiology practice, and it looked like he might have to lay off his six employees. He got nowhere.
The first round of the PPP was chaos, with large banks under sharp criticism. So in the second go-round, Goldman Sachs partnered with community development financial institution Lendistry to make sure some of the money got to very small, minority-owned businesses.
When Corrielus heard about Lendistry, he says, it was like a breath of fresh air.
"I was able to very quickly put in my application. I was getting very clear, frequent communication about where I was in the process. I felt included in the process," he said.
CEO Everett Sands says Lendistry's mission is to support business that, for various reasons wouldn’t lend to.
"We tried our best just to help as many businesses as we possibly could," he said.
"We’ve got nail salons, barber shops, restaurants, doctors, lawyers accountants, making sure their team members don’t leave, making sure they have enough money to make it through."
It was a tiny fraction of the total lending, but to customers like Corrielus: "It was everything."
The doctor was able to get his practice back on its feet.
"Through that loan we have been able to evolve as a leader in cardiovascular care delivery. So we are in a good place. If there is a silver lining in this COVID pandemic, it’s that we have been able to evolve our practice."
He now employs eight people, including the six he was able to keep paying through the stay-at-home order.
Sands says he thinks there will have to be another round of PPP.
"I think all of us thought this pandemic was going to be short-lived. We thought we were in a sprint, and now we realize we’re in a marathon," he said.
Sands hopes lenders are learning what works and that community development financial institutions like his play a greater role.