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 3:
- Paycheck Protection program off to a rocky start
- Politicians continuing to discuss next round of stimulus priorities
- Zoom scrambling to patch security vulnerabilities
“It’s not like you just snap your fingers and, ‘Oh, let’s start offering this brand new loan product where we just found out the interest rate yesterday’.”
The $249 billion Paycheck Protection program, part of the $2 trillion third phase of the COVID-19 rescue packaged, kicked off today. Many lenders, however, are not up and running yet — and those that have don’t necessarily know how to process the ones they’ve received.
Small banks have voiced concerns about the low interest rate and liability issues in cases where businesses lie on their applications. Others have noted that the program will favor established businesses and the smallest companies, without resources to file quickly for help, will not receive the critical relief.
Treasury Secretary Steve Mnuchin is reporting, however, that almost $2 billion worth of loans have been processed already.
“I’m very much in favor of doing some of the things that we need to do to meet the needs of clean water, more broadband, and the rest of that. That may have to be for a bill beyond this.”
While President Trump has advanced his desire to see phase 4 legislation focus on infrastructure revitalization, Speaker of the House Nancy Pelosi believes that, whatever the next package contains, the bill must have bipartisan support.
Some Republican lawmakers believe it’s too soon to begin discussing the next round of aid without first knowing how the impact of the current measures.
“We did not design the product with the foresight that, in a matter of weeks, every person in the world would suddenly be working, studying, and socializing from home.”
As companies across the country scramble to equip their suddenly “WFH” workforce and the majority of Americans on lockdown, Zoom has become a key way for businesses to hold meetings and friends and families to stay connected.
The company announced today that it has placed a freeze on new features and released 3 patches to rectify security bugs.