A recent New York Times article highlights how the money is allocated to help protect small businesses and their workers during COVID-19. An even bigger issue than a depletion of funds, is that the funding fell short in some of the country’s states who have been hit hardest by the virus.
The Times reported that “more than 1.4 million loans had been approved at a value of more than $315 billion.” However, lawmakers have yet to figure out when and how they will add funding back into the program. Some of what is holding up new funds is the process of how to actually apply and allocate the funds to those who need it most.
Both parties agree that more funding must be added, but “Democrats have insisted on attaching new restrictions to ensure the money flows to minority-owned businesses and other companies that are traditionally disadvantaged in the lending market.”
As of Wednesday this week, it was announced that the administration would soon no longer be able to accept new applications due to the lack of funding.
The first round of funding was largely allocated to manufacturers and those in the construction industry. Whereas hospitality businesses are still largely suffering and have had the most amount of layoffs. Since the loan process is currently set up on a first come first served basis, businesses who have experience in borrowing from lenders or have the resources to navigate the current process were able to receive funding first.
For more, check out the New York Times article for updates.