The Sting of Covid 19 May Be Lessening
for Small Businesses

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     There is a current debt of $28 billions of Unforgiveness PPP Loans 2022 Bloomberg L.P.  reports almost 350,000 loans to small business during the pandemic have not been forgiven. Most of the loans from Paycheck Protection Program data is $25,000. Many minorities run business are seeking loan forgiveness form the pandemic relief program. However, many worry they will not meet the criteria for the loan forgiveness. During the pandemic many financial institutions changed, bought other company and some closed their doors. The Rural Poll of Nebraskans is design to survey and get the feedback Nebraskans experiences and perceptions. Nebraskans believe that they are better off now than five years ago, this is based on 52 percent. However, the reality of the small business perception is slightly different, since they were hit hard by the Covid-19 Pandemic.

 

     Mostly small businesses that consist of drivers, cleaners and cash based may not have accountants and there could be a language barrier. In many cases the small business owners are doing their best they can to survive. The repayment of most PPP loans is so enormous, it will be impossible for the small business owner to repay and sustain their business. If the payments are not made on time, it will damage their credit as they are trying to rebuild their business.  Many of the loans in the early phase of the program of business that received the PPP loan are mostly too upper Caucasian neighborhoods.

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     The Center of Responsible Lending ask SBA and US Treasury and Congress to help small business owners and forgive those loans that are $25,000 or less. (Yee and Tartar. 2022)

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     The SBA Paycheck Protection Program application process ended in May 2021, however there is new reforms to the program. There may some relief for the small business owner that is design to take the sting away. The FACT SHEET of Biden- Harris Administration has made several reforms to the Paycheck Protection Program. Some of the benefits of the Reformed PPP Program.

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• Funding for small business with less than ten employees has increased 60%

• Funding for small businesses in rural areas is up nearly 30%

• Funding through Community and Minority Depositor Institution have increased 40%

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This is good news for the small businesses that are a part of the cornerstone of communities. This is a 14-day elusive application period that prompts lenders to focus on small black and brown minority businesses.  (The White House 2021.)