What Comes Next For Small Businesses And The Paycheck Protection Program

For the 2nd tranche to work, businesses will need to be able to use more than 25%. Given that we missed the window that the money would allow their employees to be retained and not go on unemployment, this is not unreasonable.

3. Testing

Here is another issue that came up that I did not expect. When employers attempt to hire people, while still closed, in an effort to replace those who have quit for other jobs, or left because they can make more from the increased unemployment levels, it can create a problem. Some legacy employees, even those who are getting paid not to work, and/or have left for other unemployment, are saying they will not return because they are concerned that these new people may have the virus and could spread it through the company. This of course confirms the importance of testing as a key to getting businesses open.

We need federal testing standards put in place, and most likely testing done by “Testers and Tracers”, newly created federal positions that could amount to a million or more new jobs for people who are trained to do testing and which helps the country to open up and help trace the history of any positive tests.

As part of the “Testers and Tracers” job creation program, there needs to be a hard expiration date so that this program doesn’t extend into a draconian big brother like situation.

4. Independent contractors getting PPP

There was a last minute increase in the paperwork required for Independent Contractors to be eligible for loans. This isn’t a prima-facie problem, but it significantly extends the time it takes for banks to try to confirm and qualify the applicant. Anecdotally it appears that many banks are choosing to make these loans a lesser priority and putting them behind bigger clients, creating obvious financial problems for independent contractors.

5. Banks are understaffed

There is just no reasonable way to expect that banks have enough personnel to deal with the volumes of applications. I don’t know if there is a way around this (other than possibly going to an Over Draft Protection Program for the 2nd tranche).

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