Small businesses that omitted on the primary round of loans under the federal Paycheck Protection Program can apply for a replacement round of the pandemic-related emergency loans starting Monday.
Applications for the $310 billion second round, which Congress approved in the week after an initial $349 billion fund quickly exhausted, are going to be accepted by participating lenders starting at 7:30 a.m. Monday, the tiny Business Administration announced Friday.
“Our economy depends on the tiny bussiness, so we’d like to and do everything in our power to make sure that they create it through the impact of this horrible pandemic,” said Jeremy Field, regional administrator for the SBA Pacific Northwest Region, during a news briefing Friday.
The loan program, created under last month’s $2.2 trillion pandemic response as to how to avoid layoffs, has praised by some as a lifeline for little businesses, which need not repay the loans if they used primarily to retain or rehire employees.
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But the program also has criticized for underestimating the quantity of cash needed by small businesses during the pandemic, and for not making loans more accessible to smaller businesses. Some small business owners in Seattle say they either unable to use for loans or not approved before the funding ran out.
Critics also say the program favored larger firms, also as those in sectors relatively untouched by layoffs. consistent with the Wall Street Journals, SBA loans of $1 million or more represented just 4% of all applications, but accounted for nearly half the cash lent out — a pattern that indicated “larger companies received a disproportionate share of aid,” said the days.
An analysis by the Urban Institute found that the accommodations and food industry, which accounted for nearly two-thirds of the work losses in March, received just 9% of the program’s funds, while the professional, scientific, and technical services sector, which saw a rise of seven,500 jobs during that point, got 12.3% of the program funds — the second-largest share, behind only construction. Yes or no blogging website-related to business and finance.
Field acknowledged that $60 billion of the new funds are earmarked for “community-based and little lenders.” The SBA is additionally working with chambers of commerce and other local business organizations to assist small business access funds under the program, which even critics have acknowledged is one of the most important and most ambitious relief efforts in U.S. history. As Field himself noted, “this may be a marathon that we running at a sprinter’s pace.”