Trump approves five-week extension for pandemic small business loan applications
WASHINGTON (Reuters) – US President Donald Trump on Saturday promulgated an extension to August 8 for small businesses to apply for relief loans under a federal aid package to help businesses affected by the COVID-19 pandemic, the White House said.
The extension of the Payroll Protection Program (PPP), which was launched in April to keep Americans on business wages and off unemployment assistance, gives business owners five more weeks to apply for plagued financial assistance has problems.
It is estimated that $ 130 billion of the $ 659 billion provided by Congress is still up for grabs. Critics fear that the Office of the U.S. Small Business Administrator, which administers the loan, continues to have difficulty distributing the funds fairly.
From the start, the unprecedented first-come, first-served program faced technology and paperwork challenges that led some companies to run out while some wealthy companies secured funding.
The SBA inspector general found in May that some rural, minority and women-owned businesses may not have received loans due to a lack of priority on the part of the agency.
Reuters reported here Thursday that a technical failure in a U.S. government system caused many small businesses to receive loans twice or more, nearly a dozen people with knowledge of the matter said.
Reporting by Katanga Johnson; Editing by Mary Milliken and Chizu Nomiyama