Welcome to the Small Business Rundown. Each day, we bring you stories that impact small business owners and their workforce.
Small Business News Highlights for April 20
- Senate adjourns without funding Paycheck Protection Program
- Small businesses file suit against Chase and other lenders
- Shake Shack returns $10 million PPP money
- Risk management positions expected to grow in post-pandemic era
Senate adjourns without funding PPP
“The conversation isn’t about the numbers, it’s about policies under those numbers.”
The Senate adjourned this afternoon without passing legislation to replenish the Paycheck Protection Program, despite the fact that the fund ran dry 4 days ago.
Legislators are debating the finer points of the new round of COVID-19 rescue legislation, estimated to top out somewhere around $500 billion. As it stands currently, $350 billion would go directly toward the PPP, with some portion of that set aside for microlending and minority business owners, while an additional $60 billion would be directed toward economic disaster loans. $25 billion would go toward coronavirus testing, a key component to safely opening the economy. Democratic lawmakers have also requested additional funds for hospitals and state and local governments.
Small businesses file class action suit against Chase
“Chase concealed from the public that it was reshuffling the PPP applications it received and prioritizing the applications that would make the bank the most money.”
As news emerges that Ruth’s Chris steak house and 70 other publicly traded companies received hundreds of millions of dollars worth of PPP funds, 2 small businesses in California have filed a class action suit against Chase Bank and other lenders. The suit, based on information released by the Small Business Administration, alleges that the lenders prioritized larger loan applications in order to profit off the larger processing fees.
In response to criticism about large companies snatching funding before small, independent businesses had a chance, Shake Shack, a company valued at $1.6 billion returned the $10 million loan they received from the PPP.
“We’ll finally be respected for holding the world together.”
As the national debate about re-opening the country rages on in the background, human resources and workplace experts are discussing what work will look like with a post-pandemic workforce and the new set of guidelines on social distancing.
For starters? Get ready to hire a risk manager. While the position was almost unheard of 20 years go, the COVID-19 pandemic has turned a spotlight on risk management professional overnight.