In order to provide a lifeline to small businesses struggling in the wake of the Covid-19 pandemic, Congress created the Paycheck Protection Program (PPP). Signed in late March as part of the sweeping CARES Act, Congress has so far authorized more than $650 billion for the program, which is being implemented by the Small Business Administration (SBA). Moreover, the SBA denies loans to owners who are currently facing any criminal charges (even misdemeanors), a policy that eviscerates the presumption of innocence. With disqualifications so ludicrously broad, the SBA is barring many otherwise qualified small business owners from relief, based on criteria that aren’t directly related to the public interest. Such a rigid restriction ignores how rent and utilities rival payroll costs for many small businesses, like coffeeshops, restaurants, and salons.

Source: Forbes May 27, 2020 17:26 UTC