Almost 14% of the business owners who successfully procured a loan through the Paycheck post Protection Program (PPP) funds witnessed other dire circumstances. According to a National Federation of Independent Business survey. These businesses were expected to dismiss their workers when they used up all the funds. Such findings focus as the lawmakers keep arguing about the contours and requirements of another set of federal relief. Initiatives for businesses and individuals. All this ultimately points towards the fragile state of U.S economic recovery and its lack of essential help. Furthermore, the Paycheck Protection Program got developed. By the CARES Act, back in March 2020, which provides forgivable loans to small business firms.
Understanding the PPP story
The White House officials had funded the program for approximately 2.5 million Americans so that they can get back to work in May 2020. It was estimated to be a rather post remarkable turnaround after about 21 million people lost employment. A month before the mass U.S shut down because of the global pandemic. And as a natural result of getting complete loan post forgiveness. This program required the business firms and organizations. To rehire the laid-off and furloughed workers.
According to Larry Kudlow, Director, National Economic Council, the PPP could have possibly resulted funds
in the job, numbers recorded a day back. The data revealed that close to 3 million (more or less) who people lost their post jobs temporarily had returned back to their respective roles. That is what the PPP story is all about.
The economic preview
Irrespective of the states willing and starting to reopen economies, several business owners. Claim they need more help to sustain the economic recession vulnerabilities. According to an NFIB survey, close to half, i.e., 47% of the entrepreneurs. Who had got the PPP loan or cash? From any other relief initiative estimated that they require extra financial assistance for close to a year. Furthermore, around 30% of the business owners had shared sales in mid-June, which was lesser than half of what funds they post made before the pandemic spread.
The businesses want added assistance
Close to half of the survey participants, which is 56% shared. That would require anything close to or lesser than $50,000 over the next 12 months. On the other hand, the additional 27% estimated that they might need an amount of $100,000. And just in case these funds companies don’t get the cash to revive the business. Close to 14% of the PPP loan recipients expect that they might have to lay off their staff once the finances are over. Another half of the companies responded by sharing that they might have to dismiss one or two workers. And close to 31% of organizations said they might have to dismiss three to five workers. With another 12% business houses expecting to do away with ten workers.
There was an improvement in the last month! According to statistics, close to 13.3% of the U.S unemployment funds rate. Was highest since the time of the 1930s Great Depression. There are estimates and speculations that the U.S business might not get left with any loan cash. During the time when they can leverage the unemployment benefits, which might expire towards July end. Here the chances of getting a coronavirus aid package are vague as well.