The PPP is extended, but not for applicants. Congress is close to adding $7 billion more to the PPP program, even though applications are coming in at a snail’s pace. And the Congressional Small Business Committee is scheduled to hold hearings today on the effectiveness of PPP.
Those are some of the top headlines impacting small businesses today and, to be frank, there is very little positive news about how the federal governments is stimulating the small businesses that have been hit hardest in the pandemic.
You can find all these stories in our Today’s Digest section of McElvy Partners, updated every morning.
Let’s start with the basics: Of all the PPP money allocated to small businesses, about $128 billion remains in the coffers with exactly three weeks left until the program officially comes to an end. In other words, 45 percent of the money designated to go to small businesses (starting back in the second week of January) still has not been claimed.
PPP is extended for banks
There has been a push by banks, CPAs and all sorts of lenders to extend PPP so that more businesses have access to the funding, but so far, the plea is falling on deaf ears.
According to a news report, the Fed has pushed back against extending the deadline for applications because they haven’t seen “significant usage” of the program in months.
Instead, the Fed announced Tuesday that banks and lenders who are trying to access funds to fulfill PPP loans will have an extended amount of time to access that money – through the month of June.
That is important because there are still thousands upon thousands of PPP loans still on hold at the SBA, largely because of technical problems plaguing the application portal that banks use to process the loans. At least banks will have an extra three months to clear those loans and get the money to desperate small businesses.
And one other important story we’re tracking today that should alarm small businesses. While optimism has increased slightly among small business owners about the remainder of the year, there’s a new problem surfacing. Half of all business owners say they have tried to hire back employees, but they are having an incredibly difficult time finding employees willing to come back to work.
That is likely because the Biden Administration’s stimulus bill, which should pass through the House today, extends unemployment benefits until the first week of September. Those on the unemployment rolls will get their weekly $600 check from states, along with an additional $300 each week from the federal government. That means the unemployed can earn nearly $47,000 a year and not work, which in many cases is more than they would earn working for a small business.
Jonathan McElvy is the CEO of McElvy Partners. His company includes the Greensheet, The Leader, Fort Bend Star, Charlotte Media Group, Coastal Bend Publishing and Texas Printers. He has managed and owned small businesses for 20 years. If your business would like to talk more about your individual needs, click HERE for contact information. You can follow him on Twitter @mcelvy.