These small business owners got Paycheck Protection loans, but they’re afraid to use the money
4 years, 8 months ago

These small business owners got Paycheck Protection loans, but they’re afraid to use the money

CNN  

Many small business owners who received loans from the federal Paycheck Protection Program say the program’s rules are forcing them to make a difficult decision: Either take on more debt or spend money in ways that don’t actually benefit their business. Courtesy Rick Schumtzler If the business doesn’t spend the money according to the rules, they must pay back whatever portion of the loan isn’t forgiven at a 1% interest rate over two years. “But I’m not going to do something that is dumb for the business.” Kurt Huffman, who owns the restaurant group ChefStable in Oregon, sees the PPP loan as a welcome lifeline but says the eight-week window to qualifyfor forgiveness is much too tight for restaurants. But that decision means he’ll have to pay back whatever portion of the loan he doesn’t spend in the first eight weeks, plus interest.

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History of this topic

The Paycheck Protection Program was a lifeline for small businesses. Its final days end with tumult and dashed hopes
3 years, 7 months ago

The Paycheck Protection Program was a lifeline for small businesses. Its final days end with tumult and dashed hopes

LA Times  

Tiny businesses, such as those at the Paramount Swap Meet, have struggled to survive over the last year. The federal government’s massive Paycheck Protection Program, which has been a lifeline for small businesses hit by the pandemic, has become so mired in confusion and delays as money runs out that hundreds of thousands of applicants may get no help, especially …

Small Local Banks Make A Big Difference For Black-Owned Businesses Trying To Hang On
3 years, 11 months ago

Small Local Banks Make A Big Difference For Black-Owned Businesses Trying To Hang On

NPR  

Small Local Banks Make A Big Difference For Black-Owned Businesses Trying To Hang On Enlarge this image toggle caption Charles Krupa/AP Charles Krupa/AP When Black business owner Jennifer Kelly applied for an emergency loan for small businesses through a major bank last spring, she found herself shut out. The lender was founded 94 years ago, with the goal of providing …

Q&A: The nuts and bolts of the Paycheck Protection Program
4 years, 6 months ago

Q&A: The nuts and bolts of the Paycheck Protection Program

Associated Press  

NEW YORK — Small businesses can still get help from the government’s coronavirus relief plan after Congress extended the Paycheck Protection Program until Aug. 8. Many businesses like restaurants and retailers whose revenue either slowed dramatically or stopped altogether are concerned that they’ll end up having to repay part of the money because they’ve had to use some of it …

PPP: Relief went to hair salons, restaurants, law firms – and some members of Congress
4 years, 6 months ago

PPP: Relief went to hair salons, restaurants, law firms – and some members of Congress

CNN  

CNN — After withering pressure from lawmakers, the federal government on Monday released data on hundreds of thousands of borrowers from the $660 billion Paycheck Protection Program – the main relief vehicle for small and mid-size companies suffering from the pandemic lockdowns. The data released by the Small Business Administration and Treasury shows that a broad cross-section of American businesses …

What small business owners need to know about changes to Paycheck Protection Program loans
4 years, 7 months ago

What small business owners need to know about changes to Paycheck Protection Program loans

CNN  

The rules small business owners need to follow in order to get their federal loans forgiven wererecently made more lenient under the Paycheck Protection Flexibility Act. But the new rules likely will not benefit small business owners who received their PPP loans early and have spent most – if not all –of their funding in accordance with the old rules. …

House approves changes to business virus aid subsidy program
4 years, 7 months ago

House approves changes to business virus aid subsidy program

Associated Press  

WASHINGTON — The House gave sweeping bipartisan approval Thursday to legislation to modify a new “paycheck protection” program for businesses that have suffered COVID-related losses, giving them more flexibility to use federal subsidies for other costs and extending the lifespan of the program as the economy continues to struggle. A spokesman for Minority Leader Chuck Schumer, D-N.Y., said he supports …

Loopholes In Small Business Relief Program Allow Thriving Companies To Cash In
4 years, 8 months ago

Loopholes In Small Business Relief Program Allow Thriving Companies To Cash In

NPR  

Loopholes In Small Business Relief Program Allow Thriving Companies To Cash In Enlarge this image toggle caption Anna Moneymaker/Getty Images Anna Moneymaker/Getty Images Small and struggling. And because the loan money will run out — all $660 billion of it once the two rounds of the PPP program are done — every dollar that goes to a company that is …

Shake Shack Returns $10 Million Government Loan Meant For Small Businesses
4 years, 8 months ago

Shake Shack Returns $10 Million Government Loan Meant For Small Businesses

Huff Post  

LOADING ERROR LOADING Shake Shack is returning a $10 million loan it received from a federal emergency fund meant to help small businesses stay afloat during the coronavirus pandemic. More information from our founder @dhmeyer + CEO @randygarutti here: https://t.co/gXNsO1RfKf pic.twitter.com/tMtVNlY6ou — SHAKE SHACK April 20, 2020 The $349 billion Paycheck Protection Program was supposed to offer loans to small …

Government loans start flowing to small businesses
4 years, 9 months ago

Government loans start flowing to small businesses

Associated Press  

NEW YORK — The flow of money to small businesses under the government’s $349 billion coronavirus relief plan is picking up momentum although many company owners are still waiting and wondering. Money that was held up by technological and legal issues and the sheer volume of applications began arriving in companies’ bank accounts at the end of last week. The …

'Paycheck Protection Program' Launches Friday, But Banks Are Balking
4 years, 9 months ago

'Paycheck Protection Program' Launches Friday, But Banks Are Balking

Huff Post  

LOADING ERROR LOADING U.S. workers won’t interact directly with the so-called Paycheck Protection Program that launches Friday, but if it works as intended, it could have a big impact on their lives. Thursday’s news that JPMorgan Chase might not be ready came as a cold shower after much optimism around the Paycheck Protection Program. Michael Strain, director of economic policy …

What small businesses need to know about the government’s new forgivable loan program
4 years, 9 months ago

What small businesses need to know about the government’s new forgivable loan program

CNN  

Small business owners have been told today is the day they can apply for a new, forgivable loan to help keep their businesses afloat during the coronavirus crisis. Here’s what small business owners need to know about the new loan program. The goal of the loan program is to help small businesses continue to pay their employees and their overhead …

Small business loans could become target of fraud and a government watchdog is already trying to stop it
4 years, 9 months ago

Small business loans could become target of fraud and a government watchdog is already trying to stop it

CNN  

CNN — As small businesses across the country clamor to apply for loans under the $2 trillion stimulus package, work is already being done to try and reduce any outbreak of fraud in the program. Treasury Secretary Steven Mnuchin said in an interview with Fox Business Monday that the small business loans included in the stimulus package amounting in nearly …

Small business loans could become target of fraud and a government watchdog is already trying to stop it
4 years, 9 months ago

Small business loans could become target of fraud and a government watchdog is already trying to stop it

CNN  

CNN — As small businesses across the country clamor to apply for loans under the $2 trillion stimulus package, work is already being done to try and reduce any outbreak of fraud in the program. Treasury Secretary Steven Mnuchin said in an interview with Fox Business Monday that the small business loans included in the stimulus package amounting in nearly …

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