"The Big Guys Get Bailed Out": Restaurants Vie for Relief Funds

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"The Big Guys Get Bailed Out": Restaurants Vie for Relief Funds

New York Times
April 29, 2020

Buried deep in the 900-page stimulus package that Congress passed in March, a single paragraph has sparked an outcry from small restaurants as major chains and mom-and-pop places alike scramble to survive a devastating financial crisis.

The provision, in a section outlining which small businesses qualify for loans from the federal government, allowed big chains like Shake Shack, Potbelly and Ruth's Chris Steak House to get tens of millions of dollars while many smaller restaurants walked away with nothing when the $349 billion fund was exhausted last week. On Monday, Congress and the White House were nearing a deal to replenish that fund with $300 billion in additional relief.

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House Approves $484 Billion in Additional Coronavirus Relief Funding

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House Approves $484 Billion in Additional Coronavirus Relief Funding

Democracy Now
April 29, 2020

On Capitol Hill, House lawmakers voted overwhelmingly Thursday to approve another $484 billion in emergency relief. Most of the money will replenish the Paycheck Protection Program, set up to provide forgivable loans to small businesses. New York Congressmember Alexandria Ocasio-Cortez blasted Republicans for refusing to take up new assistance to hard-hit U.S. residents — like cash payments and food aid — in the latest relief bill. And she pointed to big businesses like corporate chain restaurants that got tens of millions of dollars in loans meant for small businesses.

Lakers Received $4.6 Million Coronavirus Small Business Loan, But Returned It

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Lakers Received $4.6 Million Coronavirus Small Business Loan, But Returned It

Popculture.com
April 29, 2020

The Los Angeles Lakers have returned a small business loan worth approximately $4.6 million. The money was provided as part of a federal government focused on supporting small businesses impacted by the COVID-19 outbreak. The Lakers had originally applied for the loan through the Small Business Administration's Paycheck Protection Program but returned the money after learning that hundreds of thousands of small businesses were shut out.

The program was established as part of the $2.2 trillion CARES Act and was launched on April 3. Small businesses were provided with the opportunity to apply for and receive loans to cover employee salaries and other expenses. The loan is forgivable provided 75 percent of the funds are spent on payroll and that none of the employees are fired. The Lakers were eligible for the loan due to having roughly 300 employees.

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Small Businesses Say Rescue Loans Come With Too Many Strings Attached

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Small Businesses Say Rescue Loans Come With Too Many Strings Attached

NPR
April 29, 2020

Christian Piatt finally got a loan to help rescue his brand-new bar and restaurant in Granbury, Texas.

But it wasn't easy.

He applied through the federal Paycheck Protection Program, which is meant to help small businesses threatened by the pandemic. One bank told him it couldn't lend through the program. Another told him he might have better luck elsewhere. The third approved his loan and he got the money.

Now he's wondering: How should he use his $34,000 loan?

"I understand in principle it's encouraging us to get people back to work," said Piatt, the co-owner of Brew Drinkery, which was forced to shut down only 51 days after opening. "But in practice, when you have a retail storefront that is not being allowed by local authorities to operate in the way that we had before, there should be some consideration to make it to account for that."

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Buffalo's SBA office hiring temps to assist with Texas disaster claims

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Buffalo's SBA office hiring temps to assist with Texas disaster claims

April 29, 2020

The U.S. Small Business Administration's disaster assistance office in Buffalo is temporarily expanding its workforce to assist individuals and business owners affected by Tropical Storm Harvey.

The Buffalo office plans to add dozens of temporary positions, paying $16 per hour, to process requests for federal disaster-assistance loans. Although they are not considered permanent positions, those hired may be able to stay on the jobs for several months or longer, depending on the demand.

"We are looking to hire 50 to 60 agents," said Colleen Hiam, who directs the Buffalo office. "They are temporary positions. However, after Hurricane Katrina, and I compare to that because we're expecting this to be on that level or even greater, some of these folks stayed on for one, two and up to three years helping us with our disaster relief efforts."

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