Associated Press - Many small businesses say loans won’t get them to rehire.
The Associated Press reported that the Paycheck Protection Program may not be effective for limiting unemployment, as many small businesses struggle with the feasibility of bringing back all employees within eight weeks of receiving the funding as required. After eight weeks, many businesses will still not be able to operate at regular capacity, and other business owners have pointed out that their employees may be making more from unemployment benefits now than what they could be paid if rehired.
The article featured Laury Hammel, Executive Director of SBN, who doubts he will be able to reopen in that time and does not want to rehire employees just to lay them off again. “The process leaves (small businesses) cash-poor at the time when they have to re-open,” Hammel said. “Me having the money and paying people to not come to work doesn’t help my business one iota.” Hammel’s advocacy on this issue has now led to a Congressional proposal to to extend the rehiring timeline and amend the PPP.