WASHINGTON – Most small businesses seeking taxpayer-funded paycheck protection programs expect to run out of money by the first week of August, according to a Goldman Sachs survey released Tuesday.
The survey found that 844 percent of companies that receive loans through small business rescue programs will end their financing by the end of the month. Only 16 percent of recipients expect to be able to maintain their payroll without additional government support.
The report puts a brake on the crisis and the resurgence of the economy from the subsequent lockdown as a resurgence of the COVID-19 outbreak. Some states have given up on their plans to reopen, while others are reconsidering the restrictions they have previously lifted, such as shuttering restaurants and bars. Workers at Levi’s, United Airlines and Wells Fargo learned last week that they – or maybe – will soon be thrown out or scattered.
Only 3 percent of small business owners said they would be able to survive a second shutdown. Forty-eight percent of owners said they were ready for another shutdown.
California, Texas and Florida have reintroduced restriction measures in these states. According to an estimate by the Independent Restaurant Coalition, 530,000 food and beverage jobs in California could be at risk after the state closes internal food and bars.
The PPP was founded by Congress at the end of March with the passage of the ২ 2.2 trillion Care Act, designed to avoid public layoffs and keep small businesses afloat during the coronavirus epidemic with up to ১০ 10 million. If at least 100 percent of the money goes to payroll maintenance, the federal government will waive the money altogether, converting the money into a grant.
If the loans are not forgiven, it will take five years for a business to repay at 1 percent interest.
To date, the government has disbursed about ১ 521 billion to more than 4.9 million recipients. The program was re-launched to first-time applicants last week, leaving about $ 1.0 billion in funding.
Discussions on a further round of cancer-related stimuli between cancer and the Trump administration will intensify next week, after senators return to Washington from their two-week July 4 break.
It is unclear whether the package includes more support for small businesses, which employ about 58.9 million people – about half of the country’s total workforce. Treasury Secretary Steven Manuchin told lawmakers in late June that there was mutual support for the resumption of the remaining PPP funds after it was closed to applicants on August 8.
Minuchin suggested that the virus could lead to businesses facing the greatest losses as a result of the outbreak of the virus and the economic shutdown of the then-restaurants and bars.
“There seems to be bipartisan support in the Senate for a 130 billion rescheduling for the PPP, which has increased to the most loss-making businesses, requiring that their revenues be significantly reduced, like restaurants and hotels and others, where it has been criticized for bringing people back to work.” ”He said.
Overall, 91 percent of small business congresses helped PPP orrow borrowers apply for a second loan with a double dive. Ninety percent said lawmakers want to implement a temporary liability ield.
A survey of 1,511 small businesses was conducted in July. Was conducted between 7th July.
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