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Small Businesses Struggle With Uncertainty While Waiting For Government Loans

DENVER (CBS4) - With the Federal Payroll Protection Program loan program off to a rocky start, small businesses in Colorado are doubting if relief will ever come their way.

"I have never felt more helpless in my life," said Tina Lovelace, the owner of the Denver Woodhouse Day Spa. "My whole world has just been shaken up from this. My whole role has changed. It has consumed my life just trying to prepare for this."

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Lovelace owns two locations, one in Uptown Denver and another in Littleton. Between the two locations she has 100 employees, mostly massage therapists, estheticians, managers and housekeepers. Many have had trouble filing for unemployment since the locations closed in mid-March.

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"Right now out of 100 people, I may have 4 or 5 people that I have gotten notification on, that have been pushed through. Because it's just been such a difficult process for them to even apply for unemployment," Lovelace said. "My biggest concern is my people because I know they do live paycheck to paycheck and we've even tried to do little things for them."

Lovelace says she's providing health insurance and other employee benefits through the end of April, but was hoping to keep her staff intact with the government's PPP loan program. $349 billion is available to small businesses and many will not need to repay the loan.

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"I have been in constant contact with my accountants and with my bank. We are ready to go as soon as the banks are ready to pull the trigger. We've filed all of our financial documents and everything that has been required of us, even the health insurance monthly premiums and things like that. But even today, they changed the application once again," Lovelace said.

Many companies are having trouble as banks are unable to process loans. Even if a loan is accepted, it's unknown how long it will take before companies get the money and can pass it along to workers.

"I have 100 employees that, they want answers and I don't have the answers to give them. I just don't think that we as a country know what we're doing. Things just continue to change every day. You try and be as prepared as you can be. And when you feel like you've got it all done and you're ready to go, they change it once again," Lovelace said.

She's hoping that when the state and economy begin to open back up, her services will be in high demand.

"People will want to have that human touch and interaction because we're so starved for it," she said.

RELATED: Latest Updates On The Coronavirus Outbreak In Colorado

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