Heard on the Street: PPP failures and what’s next

By April 20, 2020 Heard on the Street

Heard on the Street – here’s what we were reading last week:

More PPP Funds Would Help CDFIs Lend Money To Micro Businesses: Many CDFIs were not able to be up and running in time to take advantage of PPP loans, but Democrats in Congress are looking to address that issue by setting aside about 50 percent of proposed additional PPP funding to help CDFIs, credit unions and community banks.

The Paycheck Protection Program Has Been A Disaster For Small Business: After boasting that they would provide all the funds needed to let small business process payroll for eight weeks in the form of a forgiveable loan, the Paycheck Protection Program ran out of funds—after successfully processing loans for only about 5% of America’s small businesses.

Retailers, restaurants, hotels get 18% of small business bailout cash: Retailers, restaurants and hotels — whose low-paid workers are among the hardest hit in the coronavirus pandemic — got a combined 18% of the $342 billion allocated under a new federal government program to help small firms keep paying their employees during widespread shutdowns, data from the agency running the program showed on Friday.

Schumer: Small-business loans were delayed to help minority communities: Senate Minority Leader Chuck Schumer fired back against criticism that Democrats were holding up the next round of funds for the Paycheck Protection Program, touting that provisions they got added to the bill will provide aid to rural areas and minority communities.