In a 92-to-seven vote yesterday the Senate agreed to extend the paycheck protection program, which otherwise would have expired on March 31st. Companies now have until May 31st to apply for a loan. This round of PPP was carried out as part of Biden’s US $ 1.9 trillion rescue plan. Allocated $ 7 billion Expansion of PPP funding, which should make it easier for companies to pay bills beyond payroll. The renewal also gives the Small Business Association until June 30th to process loan applications, which will hopefully allow them to clear any backlog.
The stimulus program got off to a rocky start Chain restaurants received Loans, while smaller, independent restaurants struggled to practice. Black, Latin American and Asian business received a smaller portion of funds than their white counterparts, mostly because companies have to work through their banks and big banks like Chase tended to prioritize chains and other larger restaurants.
There were also rules about what businesses could and could not use the money on, and rules about what kind of expenses would ultimately lead to lending. And these rules often did not meet the needs of the catering industry. For example, the money had to be used within a certain time frame and there was pressure to use the credits on the payroll even when restaurants were closed and it would have been dangerous to have active staff. „It’s a veiled handout to restaurant owners helping the government make their unemployment figures look better than they are,” restaurant owner Naomi Pomeroy told Eater’s Digest last May.
After public pressure, most of the chains that had received PPP funds gave them back, and the Biden government revised the PPP loans to make them more equitable. This time there was aa 14-day priority application Windows for companies with fewer than 20 employees and an adapted credit formula for sole proprietorships. There are restaurants too now able to use funds Pay sellers and build outdoor restaurants.
The loan renewal comes at a time when most states across the country have in some way allowed indoor restaurants to return, even if COVID case numbers are stagnating or stagnating can even go up. As a result, restaurants, good or bad, are more likely to use the loan to hire staff. According to ForbesBy March, there are still unclaimed PPP funds of $ 103 billion: “By giving small businesses two more months and giving the SBA an extra month to process applications, we’re helping that critical support is not cut off. The Chair of the House Small Business Committee, Nydia M. Velázquez (D-NY) said in a statement.
Correction: March 26th, 2:20 pm: This post has been updated to accurately reflect the amount allocated for PPP funding.
