Under the program, the Small Business Administration oversees lending by private banks to firms that meet the program’s criteria, with government guarantees for forgivable loans. The upshot: With only a week before the program closes, the second and last round of relief is all but frozen for hundreds of thousands of small businesses. It was conceived as a novel effort to minimize layoffs and help small businesses stay afloat with low-interest loans that could be forgiven entirely if borrowers met certain conditions involving retaining employees. The SBA says the pandemic has dealt a fatal blow to at least 400,000 small businesses, and many more are straining to hang on. Lawmakers have received thousands of angry letters from small businesses.

Source: Los Angeles Times May 24, 2021 18:45 UTC