Trump signs extension for small business lending program

Joanna Estrada
July 6, 2020

The program is a loan created to provide incentives for small businesses to keep their workers on the payroll during the outbreak.

Reuters reported on Thursday that a technical snafu in a U.S. government system caused many small businesses to receive loans twice or more times, almost a dozen people with knowledge of the matter said.

The average loan amount for the entire program was $107,000, senior administration officials said.

Louisiana business was approved for $7.3 billion in forgivable loans through the Paycheck Protection Program.

The loans can be forgiven if they are spent on payroll, to encourage firms to keep paying their employees or rehire workers they may have laid off.

The recipients employed 51 million people before the pandemic began, the officials said on a call with reporters, or 85% of all workers at companies with fewer than 500 employees.

But interest in the program waned in recent weeks, as shifting rules and the inability of borrowers to come back for a second loan limited the number of small businesses able to go through the application process.

Other reports by Click Lancashire

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