(FinancialHealth.net) – On April 27, small business owners were able to begin applying for a second round of loans through the Paycheck Protection Program (PPP). Unfortunately, the government’s help isn’t going to be enough for many companies. Experts are now predicting a wave of Chapter 11 bankruptcy filings.
Small businesses across the US have had to close or scale down amidst the coronavirus pandemic. Earlier this month we told you about a survey in which 43% of respondents said they might have to permanently shut their doors in 6 months. ABC News is reporting that many struggling companies could be thinking about filing for bankruptcy.
The Small Business Administration is trying to help, but their system is plagued with errors.
The second round of loan applications for the government's small business relief program has been slowed by computer issues at the Small Business Administration. https://t.co/Clyt5U3LsK
— The Post-Star (@poststar) April 28, 2020
Even with the help, some business owners say they don’t think it’ll be enough. San Francisco restaurant owner Jennifer Bennett said when they reopen, her occupancy could be down as much as 65% if she has to follow the 6-foot social distancing rule. She believes “bankruptcy is a possibility.” Others are expressing similar sentiments.
There’s no doubt the COVID-19 pandemic is going to change American businesses.
Sadly, many will probably have to close. The question now is, ”How many?” Nobody really knows, so we’re just going to have to wait and see. In the meantime, if you have a favorite restaurant or retail shop, order something from them if you can. Every little bit counts.
~Here’s to Your Financial Health!
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