Despite the $325 billion proposed for small businesses in the new economic rescue package approved by Congress, many small businesses are saying that it won’t be enough, reports Politico Pro. The aid is supposed to cover up to three and a half months’ worth of payroll costs, but many businesses don’t expect to bounce back by then.
"Small business savings have been exhausted, winter weather has rendered outdoor adjustments useless, and widespread vaccination is not expected until mid-2021," said Luke Pardue, an economist at payroll services firm Gusto. "Eight weeks of payroll support for the businesses that are fortunate enough to get aid is simply not enough."
In addition, a $120 billion fund to support restaurants that the foodservice industry fiercely advocated for was not included in the package. The Independent Restaurant Coalition said the bill “falls woefully short,” and Sean Kennedy, executive vice president for public affairs at the National Restaurant Association said that it will take a great deal to bring the industry back. "It's going to take cruise ships being back online," he said. "It's going to take business travel being back to where it was. It will require Bourbon Street revelers to fill up the town every night. That all has to take place before all of the restaurants are back online. You can say the same thing for virtually any community that relies on tourism or business travel."
Many experts believe that because Congress wasn’t able to come up with anything other than the PPP aid, it may be difficult for lawmakers to agree on additional aid next year.
"From the beginning, Congress has consistently opted for a short term approach to small business relief, creating a mismatch between the scope of each round of relief and the duration of the crisis itself," said John Lettieri, president and CEO of the Economic Innovation Group. "PPP loans will likely run out months before businesses in hard-hit sectors are back to normal operations. But there may not be more relief coming once this round of PPP expires." Full Story (Subscription required)
Related: Focus on Payroll Costs to Obtain PPP Loan Forgiveness, Consultant Says; DC Mayor Launches Bridge Fund for Hospitality, Entertainment Sector.
from Industry Operations https://ift.tt/2KMfsAM
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