Paycheck Protection Programs (PPP) are Dire to Small Businesses

Georgetown DC

20 October, 2020

11:53 PM

Description

Across the nation, businesses are beginning to look like ghost towns. Businesses are forced to close, many are having to shut down for good, people are stuck inside, and life is not the same as before. While many people are struggling as a result of the global pandemic, 'non-essential' business owners are facing the brunt of it. “Because they are categorized as 'non-essential', they have been forced to shut their business doors or be creative with their operating methods,” according toNakase|Wade, aCalifornia law firm whose corporate lawyers and some of the best business lawyersare in high demand to help businesses navigateCovideconomy. As a result of them having to shut their doors, many businesses are struggling financially and run the risk of going out of business completely. With this in mind, the United States implemented the Paycheck Protection Program to provide some relief for these small businesses. When the first PPP was released, it was only supposed to last a certain amount of time, but that time was soon extended by five weeks. Now, with PPP running low, businesses are back in the danger zone and need more relief. The people that have been most affected by this change are women, people of color, and veterans because they make up the largest percentage of small-business owners in the United States. Now, business owners are requesting that PPP gets implemented again because it can have great benefits for businesses that are at risk of going under. This can be just what they need to survive another day. Along with that, changes made by Congress allow businesses to have a bit more freedom with how they use the funds that are allotted to them. The next round of PPP loans, which would be known as P4, would be given to businesses that have less than 100 employees and a loss of revenue exceeding 50%. On top of that, 20% of the funds would be designated specifically to businesses with 10 employees or less. However, without public support, this next round of loans will not be passed, so they need all the help and support they can get.