Main Street welcomes added aid in Biden’s Covid relief plan as PPP funding sees demand from micro businesses

A normally busy Main Street in Livingston , Montana after Governor Steve Bullock order the closing of eating places, bars, and theaters on March 20, 2020 in response to the coronavirus pandemic.

William Campbell | Corbis by way of Getty Images

As President-elect Joe Biden lays out his sweeping $1.9 trillion financial plan and response to the pandemic, small enterprise advocates are welcoming extra aid for a Main Street that continues to be hammered by Covid.

Biden’s American Rescue Plan consists of $15 billion in grants to assist the toughest hit businesses and $35 billion for small enterprise financing packages.

“An economy that is fully re-opened and recovers with relative speed will save countless Main Street businesses and jobs, and provide a spark for new entrepreneurs to launch new businesses and hire,” stated Karen Kerrigan, SBE Council president and CEO, in a press release. She added, small enterprise restoration is an important a part of the general financial rebound.

“Clearly, specific industries and areas of the nation have been hit harder than others, and initiatives focused on these sectors and communities will bring about a more balanced recovery,” Kerrigan stated.

The aid Biden laid out can be in addition to the present Paycheck Protection Program, which reopened this week with each new fraud protections and an emphasis on serving smaller businesses that will have missed out on aid when the program rolled out final yr. Community lenders started providing first-time loans on Monday, and second-draw PPP loans on Wednesday. The staggered opening continues Friday for lenders with beneath $1 billion in property. It opens Tuesday for all different lenders.

At Sunrise Banks in St. Paul, Minnesota, demand for aid has been excessive from smaller firms because the program opened on Monday. CEO David Reiling praised the Small Business Administration’s resolution to let group lenders prepared the ground this spherical. The aid requests coming in are small however present that micro-businesses and sole proprietors are in want.

“The vast majority are going to be sole proprietors and these loans are going to be maybe a couple thousand dollars. In some cases, our lowest one today has been $250,” Reiling stated.

Beyond small enterprise aid, Biden’s proposal consists of $1,400 direct funds to people, a nationwide vaccine technique and a $15 an hour federal minimal wage.

Biden’s name for a greater than doubling of the present federal minimal wage drew each criticism and reward. Pew Research has proven 67% of Americans favor elevating the wage to $15 an hour.

The International Franchise Association stated it was happy to see vaccine technique and aid for businesses however stated the wage hike could possibly be counterproductive.

“Our goal is to ensure small businesses can continue to provide for their communities and their employees. However, a requirement to more than double some workers’ wages will harm struggling businesses and likely slow the recovery,” stated Matt Haller, IFA senior vice chairman of presidency relations and public affairs, in a launch.

Small enterprise confidence dipped in December as Covid-19 circumstances surged and Main Street awaits the altering of the guard in D.C. The National Federation of Independent Business’ month-to-month index fell 5.5 factors to 95.9. The learn is beneath the NFIB’s historic common of 98, as fewer small businesses anticipate gross sales to select up or for the financial system to enhance in the subsequent six months. In addition, there’s lingering uncertainty for small enterprise homeowners in the brand new yr.  

“Concern about economic policy in the new administration and the increased spread of Covid-19 that is leading to renewed government mandated business closures have owners pessimistic about future conditions over the first half of 2021,” stated chief economist William Dunkelberg.

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