Retail businesses like Georgie Lou’s Retro Candy store in Carlisle, Pennsylvania, will likely receive the same amount of money they did in the spring — which lasted Georgie Lou’s only a few months, leaving owner Stephanie Patterson Gilbert to piece things together on her own ever since.
“It’s helpful, but none of this is going to save a business at the end of the day,” said Gilbert.
Her revenue is down 75% compared with 2019, likely making 2020 her worst year since she first opened more than a decade ago. She’s kept her business closed to walk-in customers throughout the pandemic and is taking orders online only.
“The only thing that’s going to save small businesses is getting past Covid,” Gilbert added.
What happened to the first round
The first round of forgivable loans were disbursed between April and August. Lawmakers designed the Paycheck Protection Program to help small business owners stay afloat while some states and cities imposed shutdown restrictions to help stop the spread of the coronavirus.
What’s in the new version?
But for others, the sizes of the loans will remain the same, based on 2.5 times average monthly payroll expenses as they were before, even though it remains unlikely that the economy will be back to normal by the spring.
How the money will get out
Other lenders will likely have to wait until next week, in an attempt to give mom-and-pop shops a leg up they didn’t receive last time, when the system was overrun by large businesses at the start.
“It’s not a silver bullet for smaller businesses. But they hopefully can get a bunch of their applications in before the system is overwhelmed,” said Jeannine Jacokes, CEO of the Community Development Bankers Association.