Retail businesses such as Georgie Lou’s Retro Candy Store in Carlisle, Pennsylvania tend to get the same amount they did in the spring, which lasted Georgie Lou’s just a few months to Stephanie Patterson Gilbert. Owners can put things together on their own since.
“It’s useful. But none of this will help business at the end of the day, ”Gilbert said.
Her income is down 75% compared to 2019, which should make 2020 the worst year since she first opened more than a decade ago. She shut down the business from walk-in customers throughout the epidemic, and took orders only online.
“The only thing that can help small businesses is get through COVID,”
; Gilbert added.
What happened to the first round?
The first round of loans were disbursed between April and August. Lawmakers have designed the Paycheck Protection program to help small business owners stay, while some states and cities impose shutdown restrictions to help stop the spread of the coronavirus.
The program closes for new applications in August, although people infected with the coronavirus start to return. The first fundraising rush turned out to be an attempt to find recipients, in part due to the rules on loan removal.
It was clear that by that time the economy would not return to normal. Very fast. Still, Congress allowed aid ended despite bipartisan support to open up the backup. Small business owners waited five months before lawmakers passed legislation that reopened the program.
Local organizations in communities across the country have been trying to help fill the gap in recent months by soliciting donations in Carlisle.Traders are raising money to buy gift cards from constituency businesses that would donate to frontline workers or organizations. Local charity
What’s the new version?
Several of the changes proposed by both Republicans and Democrats, including elected President Joe Biden, made the last bill last December creating programs targeting owners. Those businesses want Employers with more than 300 workers were eliminated from the second round. Lawmakers have also raised $ 12 billion for minority businesses. Now restaurants and accommodation businesses can apply for more loans, equal to 3.5 times their monthly salary.
But for others, the loan size will remain the same, considering the 2.5 times the average monthly salary expenses, although it is still unlikely that the economy will return to normal in the spring.
Since the summer, revenue for small businesses has continued to decline, now 32 percent year-over-year, and the number of small businesses open and operating by nearly 30 percent, according to Opportunity Insights, which. It’s a project at Harvard University following its recovery.
How will the money be released?
The lending program reopened to some lenders Monday, about three weeks after Congress passed a bill. For the first few days, only the financial institutions in the community, most of whom work with very small businesses and often own a small number, are able to borrow.
Other lenders may have to wait until next week in an attempt to give mom-and-pop stores they didn’t last when the system was dominated by big businesses at the start.
“It’s not a small business bullet. But they hope to get a ton of applications before the system floods, ”said Jeannine Jacokes, CEO of the Community Development Bankers Association.