In the dark and struggling with shutdowns, many business owners still need help.
As the application window for the Paycheck Protection Program (PPP) draws to a close, we wanted to highlight an Associated Press report concerning over $140 billion in unclaimed funds. The amount of money being left on the table has raised questions over whether PPP can be the complete solution to America’s economic recovery.
“It seemed to be structured by people who might not know how small businesses are run,’ said Frank Groff, co-owner of Portland’s White House, a bed and breakfast in Portland, Oregon. The B&B’s workers, including cleaning services and landscapers, are independent contractors. Groff got $12,000, but it only covered two managers’ salaries. The B&B has remained open during the outbreak, but its revenue is down nearly 75%.”
The report describes the inherent flaws in the program – from disadvantaging contractors and sole proprietors to being overly reliant on pre–established relationships with lenders.
Though PPP was a good stopgap measure in response to the immediate threat posed by the pandemic to American businesses, it is clear the program was not built to provide businesses with the flexibility or certainty necessary for a sustained recovery, and more must be done.
You can read the article online. If you would like to learn more about the Coalition or to speak with the members pushing to ensure America’s economic recovery, please don’t hesitate to email [email protected].