Mid Penn Bank closes $470M in small business loans
- Author: Darren Santiago Apr 24, 2020,
Apr 24, 2020, 0:23
Among those issues: Some of the money was sucked dry by entities that a program for small businesses probably shouldn't be helping out to begin with.
It said its revenue has been "dramatically affected" by the coronavirus crisis and that it meant to use the PPP loan money to pay its employees and hire back furloughed workers. This comes following outrage that big public companies have snagged so much of first round of emergency funding, which quickly ran out.
McSally was referring to the fact that instead of struggling small businesses reaping the benefits from the federal Paycheck Protection Program, millions instead went to public companies, including chain restaurants Ruth's Chris steakhouses (a loan of $20 million), Fogo de Chao ($20 million), J. Alexander's ($15.1 million), Kura Sushi ($6 million), Potbelly's ($10 million) and Texas Taco Cabana ($10 million).
The U.S. Small Business Administration, which has been administering the program, said last week that 4,400 of the approved loans exceeded $5 million, although the typical loan was $206,000. While the funds allocated to the PPP have been fully expended, we're hopeful that Congress will reauthorize a second round to help even more businesses and independent contractors. "In addition, Congress should clarify implementation to resolve issues with added limits and requirements that are not in accord with legislative intent". The U.S. Senate on Tuesday passed a 484-billion-U.S. -dollar relief package that would increase funding for small businesses, hospitals and coronavirus testing as the COVID-19 fallout continues to ripple through the country. It also renews funding by providing $320 billion for the Paycheck Protection Program.
Coronavirus was spreading in NYC in February, came via Europe
Dr Harm van Bakel, a geneticist and co-author of the Icahn School's research, informed the Times: 'The bulk is plainly European'. Although the NY outbreak appeared to originate in Europe, the Washington state cases appear to have come from China.
The PPP, which ran out of money last week, is created to provide loans for small businesses to keep their workers on the payroll during the coronavirus outbreak.
Senate Small Business Committee Chairman Marco Rubio, R-Fla., noted that the sheer volume of lenders now approved to make PPP loans, coupled with applications already pending, would mean a swift depletion of funds.
FILE - A bread delivery is made to a Shake Shack restaurant in the Brooklyn borough of New York, March 16, 2020. "Until every restaurant that needs it has had the same opportunity to receive assistance, we're returning ours".
Some 7,913 businesses were notified that their information might have been exposed to other applicants within the SBA portal, according to Business Insider.