How small businesses will benefit from the $484 billion relief package
Small businesses are hurting under coronavirus constraints, since they don’t know when they can reopen.
Some rural hospitals are also struggling to earn money since elective surgeries are temporarily banned.
On Thursday, the U.S. House passed a $484 billion relief bill, which President Trump is expected to sign on Friday.
Most of the money will replenish the Paycheck Protection Program, which ran out of funds last week.
The original goal of the PPP was to help small, mom and pop businesses of America. However, larger, publicly traded companies found a loophole and soaked up more than $200 million.
The U.S. Treasury Department is now asking them to give it back. This time around, small businesses will have a better shot at getting relief.
Lawmakers returned to Washington, approving a new relief package which includes $310 billion for the PPP, which quickly ran out of money.
A survey from the National Federation of Small Business last week found 80% that applied have yet to receive help.
What’s even more frustrating, is that several large chain restaurants like Ruth’s Chris Steakhouse qualified for 20 million loans. Facing criticism, the company agreed to return the money. The U.S. Treasury Department is asking other publicly traded companies to do the same.
This time around, businesses applying must certify in good faith that they absolutely need the money to stay open.
Small businesses that already applied through a bank and are still waiting for cash should not have to re-apply. However, it’s a good to double check with your lender.