Economists wrote in a May 4 report that, while “additional aid for businesses is possible,” they don’t expect additional rounds of funding for the PPP.The firm estimates that eligible businesses have expenses eligible for loan forgiveness of around $750 billion—And with nearly $700 billion in funding for the first two rounds combined, the firm believes most eligible businesses would be covered.
From carveouts that allowed large chains to receive funds to public companies receiving millions, After news broke that over 300 publicly-traded companies received over $1 billion in loans, Meanwhile, many small businesses have dealt with massive delays in getting funds, and demand is still strong for the PPP, according to banks and For the banks doling out the loans, concerns for the need of another round are already top of mind. Legislation to put mandated minimum space between oil wells and homes, as well as schools and playgrounds, failed passage in a California Senate committee.Political theater without the roar of the crowd? Democrats say the existing Economic Injury Disaster Loan program, which is a loan directly from the government to small businesses, could be modified to do that. Times sports columnist Bill Plaschke talks about experiencing COVID-19. “People have a little hesitancy right now that needs to be overcome.”For the nation’s smallest businesses — many of which are Black-owned and have no employees — even the changes Congress is proposing may not be enough, said Ron Busby Sr., president of U.S. Black Chambers.An estimated 41% of Black-owned businesses have permanently closed since the pandemic began, he said. Democrats want to focus on those with fewer than 100 employees that have seen sales decline by 50% or more. The SBA is expected to launch a portal next month for processing loan forgiveness decisions.
for the Self-Employed.As more Americans benefit from federal aid during the pandemic, some believe the discourse about the role of government in U.S. life could shift.For small businesses that already received one of the forgivable PPP loans, there is some good news about a possible PPP relaunch: They may be able to get a second loan, something not permitted in the original rules. “I’m not saying he’s signed off to our package, but it reflects a lot of our joint priorities and we’re pretty close.”Republicans want to target businesses with fewer than 300 employees that have seen sales decline by 35% or more, and to set aside $10 billion for community and rural banks to lend. ), said Senate Small Business and Entrepreneurship Committee Chairman Marco Rubio (R-Fla.). Now, Goldman believes there are “other options to assist small businesses without increasing PPP funding.” Instead of new PPP funding rounds, Goldman economists see three other avenues to aid small businesses: First, the 8-week term for forgivable expenses could be extended (for many businesses, 75% of loans must be used for payroll by June for the loan to be forgiven); Second, businesses will soon be able to get loans from the Fed’s Main Street Lending Program (MSLP), which Yet another aspect Goldman highlights is the “recent political scrutiny” engulfing the program. “[Local lenders] know how to get to the businesses that need the funds.”Self-Help Federal Credit Union in Oakland used its existing relationships with community-oriented economic development groups to help businesses that haven’t gotten a loan before and needed a bit more help to fill out their PPP applications over the summer, said Purvi Patel, special projects manager.“Some of this stuff feels overwhelming, especially for a small nonprofit in the Central Valley with three or four employees or an arts nonprofit in L.A.,” Patel said.Jase Rex, 51, chief executive of Hot Section Technologies, a federally certified aircraft repair station, worked with an economic development group and his local bank to get a $180,000 loan in early May that allowed him to keep paying his 18 employees.But he said he wouldn’t qualify for a second loan if he must show a drop of 50% in sales.
For him, bills such as insurance and utilities may be as much as payroll, and while he’s grateful that the $23,700 loan he received in June allowed him to pay two of his four employees, he’d like to see more flexibility.“If we don’t pay the bills, eventually we will be kicked out,” Ortez said.The latest news, analysis and insights from our bureau chiefs in Sacramento and D.C.
Be a patriot.’Agricultural and essential workers across California fear evictions as the coronavirus forces them out of work, but many living here illegally are also afraid to seek help or fight back.Joe Biden’s choice of Kamala Harris, a Howard University alum, is cause for celebration at HBCUs. But it may not be enough to help small businesses shut out of previous rounds of the government loans. Microsoft may earn an Affiliate Commission if you purchase something through recommended links in this article. John Asbury, CEO of the regional Atlantic Union Bank, based in Virginia, recently told Thousands of students, staff sent home nationwide as COVID gnarls school reopeningsThis Low-Cost Grocery Store Is the Fastest-Growing in the U.S. Trump says he won’t approve emergency funding for Postal Service, raising the chances of political chaos in November when mail-in ballots flood in. Mnuchin said that if there is a new round of PPP loans they would need to be far more targeted, given how the economy has shown signs of improvement compared with earlier in the pandemic. Yes, he says, it’s really as bad as you’ve heard.Statewide in California, the transmission rate of COVID-19 has stabilized or is falling, and hospitalization rates are also dropping.The new school year of remote learning will bring unique challenges. Sarah D. Wire covers Congress with a focus on the powerful 55-member California delegation. The bulk of America’s small businesses have fewer than 20 employees, but they didn’t get the bulk of the earlier PPP money and aren’t sure they’ll do better under a revised program still run by the SBA, advocates say.“The vast majority of business owners who need and want to be able to access PPP are not the typical SBA small-business borrowers,” said Katie Vlietstra, vice president for the National Assn. Goldman Sachs doubts there will be a Round 3 of PPP loans for small businesses Anne Sraders 5/5/2020. Treasury to disclose businesses who took PPP loans of $150K or more Coronavirus About 14% of PPP loan recipients anticipate laying off workers after depleting their funding, according to … Banks have generally supported the PPP, but some lenders have said they are less enthusiastic about participating.