businesses

New bill would allow small businesses to get second PPP loan

Certain small-business owners may be able to apply for a second Paycheck Protection Program loan if a new bill introduced on June 18 becomes law.

The legislation, called the Prioritized Paycheck Protection Program (P4) Act, would allow businesses with fewer than 100 employees to apply for a second loan if they have used up (or are on pace to exhaust) their first PPP loan and can show a 50% loss in revenue due to the COVID-19 pandemic. Business owners also must show they need the money for payroll and eligible non-payroll costs.

“Many small businesses will continue to struggle in the weeks and months to come,” Sen. Ben Cardin (D-MD) said. “Congress must once again act urgently to support our most vulnerable small businesses through this crisis, so our economy can recover as quickly as possible after the pandemic. Every business we prevent from failing now, is a business

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Small businesses operate in limbo, as economies begin to reopen

The Strand Book Store in New York City has stood as a source of pride for the Bass family for 93 years. With its famous slogan “18 Miles of Books,” the Manhattan shop has weathered the Great Depression, survived 9-11, and gone to battle with Amazon (AMZN) — all without a single layoff.

That all changed in March, when owner Nancy Bass Wyden, the granddaughter of founder Benjamin Bass, made the painful decision to cut nearly 200 jobs because of the coronavirus.

“We shut everything down. We shut our store down, we shut our website down, we shut our warehouses down, because we were very concerned about the safety of our employees and the customers,” Wyden told Yahoo Finance. “We went from over 200 employees to 12 employees to conserve the payroll.”

More than two months later, the Strand is still in limbo: A little more certain about its next

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Unless the government changes its ways, millions of businesses ‘will not make it’: Newark mayor

Congress has now passed four significant pieces of legislation to try to blunt the effects of the coronavirus pandemic and rush help to the U.S. economy.

It’s still not getting to most small businesses, says the mayor of Newark, N.J.

“Honestly, very few of the businesses in the city have been able to access [government] funding,” Mayor Ras Baraka told Yahoo Finance, pointing to deficiencies at every level of government, from his own administration up to Washington, D.C.

“You have millions of businesses that will never be able to get funding from the way it’s happening now,” he said.

Holes in the Paycheck Protection Program

The Paycheck Protection Program, which offers up to a $10 million forgivable loan per business, was unveiled in March with the hope that empowering banks would get the money out quickly to those that need it. Jovita Carranza, head of the Small Business Administration, said

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Black-owned businesses will see extended ‘challenge’ even after pandemic ends

Businesses in minority communities hardest hit by the COVID-19 pandemic are weary of the prospects for a quick recovery, even with the help of the Paycheck Protection Program loans.

Carver Bancorp. (CARV), the largest African-American operated bank in the country, has originated about $20 million PPP loans to businesses in its New York City metro footprint, with another $23 million in the pipeline. 

Carver CEO Michael Pugh told Yahoo Finance on Tuesday that small business entrepreneurs are prioritizing survival as the NYC area remains under a shelter-in-place order. But re-growing business even after the economy re-opens will be difficult.

“Small businesses will continue to have a challenge on the other side of this pandemic,” Pugh said.

Congress has launched two rounds of PPP loans totaling more than $600 billion. Through Small Business Administration lenders like Carver, the PPP allows companies to access a loan that would be forgiven in its

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‘Non-essential’ businesses say coronavirus closures violate the Constitution

American businesses deemed non-essential and struggling to survive during the COVID-19 outbreak are filing lawsuits to challenge the constitutionality of government-forced closures. One such challenge is now before the U.S. Supreme Court.

On Monday, the high court received a response from Pennsylvania Gov. Tom Wolf ordered by Justice Samuel Alito to address a request from three petitioners to halt the state’s March 19 emergency order while the court considers whether to review the case.

The request came after the state’s supreme court issued a 4-3 ruling upholding the governor’s order, which adopts an exemption system for “life-sustaining” businesses to remain open during the pandemic. The petitioners argue the order violates both the U.S. Constitution and state law. Separate cases challenging the constitutionality of mandated businesses closures have also been filed in Michigan and Minnesota.

Pennsylvania’s order prohibits any person or entity from operating a business that is “non-life-sustaining” regardless

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