As Small Business Loan Program Comes to an End, Debate Heats Up: Business Casual

Powered by RedCircle

After delivering more than half a trillion dollars to millions of employers, the Small Business Administration is set to stop approving government-backed loans as of July 1st. However, in a June 12th report, the Fed told Congress that a multiplicity of data reveals “an alarming picture of small business health during the COVID-19 crisis.” In fact, a National Bureau of Economic Research analysis reports that between February and April, the number of working business owners, including small businesses, fell by 22%, the largest drop on record, with restaurants, hotels, construction and transportation companies taking the brunt of financial misfortune during the pandemic. And according to Holly Wade, Director of Research and Policy Analysis for the National Federation of Independent Business, which represents small businesses, “We’re still in a crisis. Until we have better therapies and a vaccine, we’re not going to see a full recovery by any stretch.”

On this snippet, MarketScale’s Business Casual co-hosts Taylor Bagley, Tyler Kern and Daniel Litwin discuss:

  1. How the demands for more support for small businesses are prompting a debate between lawmakers
  2. How the 25/75 rule only allowed for 25% of the funds received to be applied toward, rent, mortgages, utilities and other operating expenses in order for businesses to be eligible for loan forgiveness
  3. How onerous restrictions and minority employers without banking relationships left $130 billion unspent in the Payment Protection Program, with 55% of small businesses opting not to apply for PPP loans and 71% not applying for Economic Injury Disaster loans
  4. How large banks deemed that loaning to businesses with fewer than 50 employees too labor intensive
  5. How small community banks were ill equipped to handle the deluge of applications and process large amounts of data in short timeframes
  6. How new restrictions will inhibit companies with ample resources, like Shake Shack, Ruth’s Chris and more, to benefit from future business aid
  7. How the smallest businesses will need more help as the economy reopens amid “alarming circumstances”

Bringing thought leadership to your day, MarketScale’s Business Casual keeps you current with the hottest topics, the newest trends and the latest technology shaping business and our world today. And for the latest thought leadership, news and event coverage across B2B, be sure to check out our industry pages.

Follow us on social media for the latest updates in B2B!

Image

Latest

Business school
Reboot Business Education: Make Lifelong Learning the Default
May 5, 2025

As artificial intelligence reshapes industries and digital skills rapidly evolve, business schools find themselves at a crossroads. Traditional MBA programs and executive education are no longer endpoints but touchstones in a lifelong learning journey. As digital tools and technologies advance rapidly, educational models must keep pace to remain relevant in a changing workforce. Business schools…

Read More
Work-based learning
Career Planning Beyond the College Track: How Work-Based Learning Expands Career Options for Students
May 2, 2025

As debates around the value of college heat up and the demand for skilled workers rises, a growing number of educators and policymakers are rethinking the “college for all” mindset. A 2024 report from Georgetown’s CEW found that many middle-skill jobs—requiring only a certificate or associate’s degree—pay over $53,000 annually early on in a…

Read More
Ellendale AI Data Center
Applied Digital Ellendale AI Data Center: April 2025 Update
May 1, 2025

Progress continued throughout April at Applied Digital’s Ellendale AI Data Center, as construction efforts advanced across multiple fronts. With favorable weather conditions and a clear focus on critical infrastructure, the ELN02 site remains on track to support the growing demands of high-performance computing (HPC) and artificial intelligence. Key developments from April include: Metal jacketing installation…

Read More
Produce distribution
The Produce Distribution Industry Needs Flexibility, Empathy, and a New Generation of Talent
May 1, 2025

As inflation reshapes consumer habits and restaurant margins tighten, the produce distribution industry is under more pressure than ever. This high-touch, low-margin, logistics-heavy business is facing rising freight costs, labor shortages, and evolving food safety standards — all while trying to deliver perishable products across a fragmented national landscape. Between 2020 and 2024, the…

Read More