Loan program ends, hard-hit businesses hope for 2nd chance

NEW YORK (AP) — Small businesses are in limbo again as the coronavirus outbreak rages and the government’s $659 billion relief program draws to a close.

Companies still struggling with sharply reduced revenue are wondering if Congress will give them a second chance at the Paycheck Protection Program, which ends Friday after giving out 5.1 million loans worth $523 billion. While the program that began April 3 has gotten mixed reviews, business owners still need help as the virus continues to spread and hamstring the economy.

“They’ve exhausted their funds and are looking for a Round Two,” says Molly Day, a spokeswoman for the National Small Business Association, an advocacy group.

Congress is debating further help for small business as part of a broader coronavirus relief package. One proposal would allow the hardest-hit businesses, those whose revenue is down over 50%, to return for a second PPP loan; there’s still over $100 billion in unclaimed money in the program.

Some businesses are already expressing concerns. For example, the 50% requirement will leave out many small businesses, says Sean Kennedy, an executive vice president at the industry group National Restaurant Association. Many hard-hit groups such as restaurants have managed to keep some revenue flowing in, but still need a financial lifeline,

“At that level only about 45% of restaurants would qualify. A second round of PPP will make or break these restaurants,” he says.

At the moment, negotiations on the relief package have bogged down over unrelated issues including unemployment benefits for laid-off workers.

When the PPP was created, the widespread expectation was the pandemic would subside by the summer, businesses would reopen and life would return to some semblance of normality....