Restaurants and retailers have applauded current adjustments within the authorities’s $670 billion small enterprise rescue program that make it simpler for corporations battling the Covid-19 pandemic to qualify for loan forgiveness. However the elevated flexibility has come late for scores of small companies that adopted the Paycheck Safety Program’s unique guidelines—and rapidly used up most or all of their cash.
Rising numbers of Covid-19 circumstances in Florida, Texas and different Sunbelt states have disrupted many reopening plans. The governor of Texas paused reopening plans and ordered some hospitals to pause elective surgeries. New York is delaying the reopening of malls and gyms. Maine placed on maintain plans to let patrons inside bars.
ECi Shops, a series of consignment retailers in Leominster, Mass., acquired a roughly $80,000 PPP mortgage in mid-April. By the point Congress relaxed this system’s guidelines on June 3, the 22-employee enterprise had already spent the majority of its PPP mortgage. It was nonetheless days away from having the ability to open its doorways to prospects.
“It doesn’t actually do us a lot good,” mentioned ECi finance chief Neil Abramson. ECi would have delayed bringing its staff again to work had it recognized earlier that Congress would prolong the timeline for utilizing PPP funds. As a substitute, the corporate paid for a number of weeks of health-insurance premiums and funded retirement plans for its workers to make sure the cash could be spent rapidly sufficient to qualify for mortgage forgiveness.