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Southeast Texas business owner says some banks making loan application process more difficult

Frankie Randazzo has more than 200 employees at his businesses. He says the documentation needed to apply for loans changes daily

BEAUMONT, Texas — One Southeast Texas business owner believes some banks are making it harder 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. 

"Right now we have 7 locations, 2 in Louisiana and 5 in Texas," Randazzo said. 

With more than 200 employees, he told 12News he was denied an opportunity to apply for the payroll protection program by Compass Bank. 

Randazzo says the bank didn't allow him to apply because he didn't have the right documentation. He says the requirements change daily. 

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"I've said it before.. this crisis has the ability to change the local economy," Randazzo said. 

Last week, Congress appropriated $349 billion for the program, which is an SBA loan that helps businesses keep 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 looking for answers. 

"It's always changing. You talk to one person and they say you need all these documents and then you talk to another person and they say no you needed this," Valvahno said. "You know everyone's in a mad rush to get as much money as they can to survive and it's understandable it's just what has been set forth nobody has a full understanding of it yet."

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This money would help Randazzo keep the employees on his staff. It's the primary goal of the paycheck protection program. 

"A locally owned company, 16 years in Beaumont, 25 years in Port Arthur. And the people you work with become family so when something like this happens  it's unprecedented. There's no playbook for it," Randazzo said. 

So far, they still haven't been able to apply for 3 of the 7 businesses. 

Randazzo is hopeful his business will come out on top in the end. 

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