Business group says Paycheck Protection Program was too limited, failed to adequately help businesses pay operational expenses so they can reopen and stimulate the economy
DAVID CRUZ, NJTV NEWS | APRIL 23, 2020
Small business owners in New Jersey and other regions hit hard by the COVID-19 outbreak are struggling to stay afloat despite a nearly $350 billion lifeline from the federal government.
More money is likely in the offing, but the first wave of funding under the Paycheck Protection Program (PPP) — part of the CARES Act passed by Congress last month to provide relief during the pandemic for individuals, business and governments — ran out in about two weeks. The taxpayer-funded program, intended for businesses with 500 or less employees, turns federal Small Business Administration loans into grants if companies keep their workers on.
Amid massive demand for the funding, there were also questions about how the program was being administered as chains like Shake Shack and Ruth’s Chris Steak House secured millions in loans, while many truly small companies who sought relief got tangled in red tape. Shake Shack has since returned its $10 million award.
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