FORT WAYNE, Ind. (WANE) -Friday, President Trump signed an additional stimulus package into law. It includes another round of funding for the Paycheck Protection Program.
There have been many layers to this story, first, there were issues with the application process, then the funds ran out because of high demand, and then it was reported that larger companies had their hand’s in the small business funding’s cookie jar.
The package is nearly $500 billion with the majority of the funds going to the Paycheck Protection Program. As we reported, due to high demand the funds ran out in less than a month. In the new plan, more than $300 billion will be issued to replenish the Small Business Administration’s Paycheck Protection Plan(PPP)
For companies that do not have an established banking relationship or rural and minority-owned companies, $60 billion dollars will be allocated to fund these businesses. Around $60 billion will fund the SBA’s Economic Injury Disaster Loan (EIDL) program.
Some small businesses are concerned because the first go-round many larger companies tapped into the funding that was meant for small enterprises.
We’ve reported on a couple of local small business owners who struggled to receive their PPP; however, many reports circulated of Fortunate 500 companies receiving federal money that was intended for smaller companies.
Ruth’s Chris Steakhouse chain and Pot Belly received $20 million, Pot Belly Sandwich received $10 million and Shake Shack was originally funded 10-million dollars. All companies stated that they do plan to return the PPP funding.
Before, a company only had to state that “current economic uncertainty makes this loan request necessary to support ongoing operations.” Now with the new guidelines by the U.S. Department of Treasury, upon request company must provide proof it meets the small business certification.