How The Coronavirus Stimulus Left Small Businesses High And Dry

For millions of struggling small businesses across the country, a small hand up from Uncle Sam could go a long way. On April 24, the owners of mom-and-pop establishments breathed a sigh of relief when President Trump signed into law a $310 billion extension of the Paycheck Protection Program (PPP), which offers forgivable loans to businesses with 500 or fewer employees.

Unfortunately, the program’s structure is hopelessly confusing, which has left many beleaguered businesses not receiving the money they need. Congress and the Trump administration must get PPP back on track and make sure struggling companies are able to get some relief.

Since PPP loans started flowing in early April, there’s been lots of press about large restaurant and entertainment chains jostling for taxpayer dollars meant for small businesses. Potbelly Sandwich shop nabbed $10 million from Uncle Sam, while Ruth’s Chris Steak House was approved for $10 million each for its two subsidiaries. Kura Sushi, which operates 25 locations in the U.S. and more than 400 restaurants worldwide, received about $6 million. After a public outcry, all of these chains returned the money. But more than 70 publicly traded companies received PPP funds before the initial program money ran out on April 16, and many of them (i.e. Fiesta Restaurant Group Inc.) have not yet given back the funding.