Problems arise with Paycheck Protection Program funding

Trump discussed how the government is helping small businesses stay afloat at the White House conference on April 7

The family-owned restaurant, The Tasty, has since closed its doors due to coronavirus.

By Helen Frazer

PLYMOUTH, Mass.- President Trump detailed how the American government is aiding small businesses at a White House conference earlier last week, as coronavirus continues to force companies to close their doors.

The conference, held on April 7, discussed the support being provided for business owners who are facing hardships due to coronavirus closings.

“America’s small businesses are the backbone of our communities,” said President Trump.

The U.S. Small Business Administration Office of Advocacy states that small businesses employ nearly half of the American workforce. With COVID-19 requiring people to social distance, these businesses, and the people they employ, are facing financial hardships.

The Paycheck Protection Program was launched on April 3. Businesses who fit the loan requirements, outlined here on the official Paycheck Protection Program website, were eligible to receive a loan with an interest rate of 1 %. If the loan was used for personnel-related costs over eight weeks, they would have the entirety of the loan forgiven.

At the conference, President Trump was joined by executives from major and regional banks. One of those executives being the CEO of Bank of America, Brian Moynihan.

“We also are ensuring our clients understand the commitment they're making to use these funds for the right purposes and keep the employment in America as high as we possibly can during this difficult time,” said Moynihan.

The U.S. Small Business Administration stated on April 16 that the Paycheck Protection Program will no longer be accepting applications for the original $349 billion program. The company reported approving more than 1.6 million applications totaling more than $339 billion.

“It was a great loan in theory, but it’s not user friendly,” said Nina Peters, owner of The Tasty restaurant.

The Tasty is a family-owned establishment located in Plymouth, Massachusetts. This 40 seat restaurant has since closed its doors after the state-mandated no in-house dining at restaurants, putting their employees on furlough.

Peters offered take-out for a while, but it soon became too stressful. With three young children at home all day due to online schooling, she decided to close the restaurant altogether.

Many borrowers are still waiting for their loans to be approved and for money to show up in their accounts, Peters being one of them. She applied for the Small Business Administration loan and the Paycheck Protection Plan on March 24 and has since heard nothing, except that it is “in review.”