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!

Latest

Pathr.ai Announces Partnership with The Lionesque Group and MG2 to Deliver Pop-Up Shop Analytics for Retailers - Unveiling at National Retail Federation’s Big Show 2022
Pathr.ai Announces Partnership with The Lionesque Group and MG2 to Deliver Pop-Up Shop Analytics for Retailers – Unveiling at National Retail Federation’s Big Show 2022
January 16, 2022
NRF Jacob K. Javits Convention Center, NYC, Booth #948  – January 16, 2022 – Pathr.ai, the industry's first and only Artificial Intelligence (AI) powered Spatial Intelligence platform, announced today it has Read more
NRF 2022 Retail's Big Show
What’s in the Shopping Cart for the 2022 National Retail Federation’s Big Show?
January 14, 2022
 In just a few short days, from January 16th through the 18th, the National Retail Federation will launch Retail’s Big Show in the shopping capital of the world, New York City. As retail Read more
Schools Struggle to Reach Their Education Technology Goals. Here’s Why and How To Fix It.
January 14, 2022
As we hit the two-year mark of the COVID-19 pandemic, the education sector continues to struggle in adjusting to virtual and hybrid education at scale. In 2020, McKinsey estimated that, due to COVID Read more