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 September 28:
- Still no sign of forgiveness for PPP loans
- Google to start helping employees pay school loans
- The importance of succession planning for small businesses
Still no sign of forgiveness for PPP loans
“Unless we get something both from a legislative perspective and from Treasury and SBA to make this process a little easier, it’s going to be a struggle.”
The Paycheck Protection Program disbursed $525 billion in loans to over 5 million small businesses during the early days of the COVID-19 pandemic. At this point, nearly 2 months after the program stopped issuing new loans, not a single loan has been converted into a grant.
In fact, lending institutions have been submitting applications to the federal government for reimbursement since August 10 of this year and are growing frustrated by the lack of communication from the Small Business Administration. Many businesses suddenly find themselves on the hook for loans that they did not expect to have to repay, causing economists to fear that many businesses will fall even further behind.
Financial institutions have lobbied Congress to streamline the process for small businesses owners who took out loans valued at $150,000 or less.
Google to start helping employees pay school loans
“College degrees are out of reach for too many people around the world, and the soaring student loan debt crisis has widened an already pervasive wealth gap, globally.”
In response to the growing student financial aid crisis, Google has announced they will begin matching up to $2,500 per year per full-time employee for loan repayment.
With the pandemic eliminating many of Google’s famed in-office perks, the company has had to find other ways to attract and retain talent. The company also notes that the burden of taking out loans for higher education disproportionately impacts students of color.
The importance of succession planning for SMBs
“With the passing of my father, things have been brought home very quickly. I’m realizing, not only do I need to put things in place for myself, I also need to for my employees because life is short.”
As small business owners reflect on lessons learned from the COVID-19 pandemic, many note the value of creating or revising their plans for how to handle unexpected events. Indeed, succession planning is a valuable exercise that can make or break small businesses in the event of unforeseen circumstances.