When the U.S. government first rolled out forgivable loans to small businesses in early April under the Paycheck Protection Program, loan officers at Bank of the West in Grapevine, Texas worked nights and weekends to process a tsunami of applications.
FILE PHOTO: An employee of Farley’s East cafe, that closed due to the financial crisis caused by the coronavirus disease , carries donated food items after being laid off from the cafe in Oakland, California, U.S. March 18, 2020. REUTERS/Shannon Stapleton/File Photo
Many of Bank of the West’s PPP borrowers haven’t touched their PPP loan deposits, which total $87 million, Blankenship says, partly because they are confused about the terms. “I think it’s a mixture of uncertainty and anxiety and fear, and the uncontrollable factor about employment and rehiring.” The SBA does not provide estimates of how many jobs have been protected by the 4.4 million loans made to date under the program.Business owners first saw the program as a lifeline during the coronavirus crisis. They are now worried that confusing and changing rules may keep them from converting the money to a grant, meaning they will need to pay it back.
But even as states like Texas reopen, health authorities are limiting capacity at restaurants and retailers, and customers have been slow to return. Some companies have opted for the Employee Retention Tax Credit , also created by Congress in March, because it provides more certainty than the PPP, says Main Street Alliance’s Sarah Crozier. The ERTC, a refundable tax credit against wages paid, cannot be combined with a PPP loan, and essentially acts like a payroll subsidy.Public companies have returned a total of $453 million in PPP loans, according to data compiled by FactSquared.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Singapore plans $23.2 billion fourth stimulus package to support coronavirus-hit economySingapore's government on Tuesday announced another 33 billion Singapore dollars ($23.2 billion) to support its economy which has been severely hit by the coronavirus pandemic.
Read more »
Photos: States reopen and celebrate Memorial Day amid coronavirusThe US marks Memorial Day weekend with altered traditions as the coronavirus death toll nears 100,000. See more photos:
Read more »
Shale industry braces for bankruptcies as energy demands fall amid coronavirusThe biggest independent shale oil groups in U.S. see a record combined loss of $26 billion in the first quarter as coronavirus slashes energy demand.
Read more »
ECB's coronavirus stimulus must remain flexible, Banque de France governor saysThe European Central Bank should not need to take into account the size of a country's economy when buying governments bonds, François Villeroy de Galhau told CNBC.
Read more »
As small L.A. retailers await coronavirus reopening, the landscape is bleakThe easing of coronavirus lockdowns allows small businesses to reopen in phases. Two small retailers — Kitson and Little Trendz — find it difficult.
Read more »
European shares rise on recovery hopes, Bayer jumpsEuropean shares rose in thin trading on Monday, as optimism over reopening of countries and signs of more stimulus for the coronavirus-hit euro zone economy helped sentiment.
Read more »