It’s been almost a year (since it’s been sinking) since the federal government approved its first wave of Paycheck Protection Program (PPP) funds to help small businesses in the pandemic. And it’s no secret that the initial deployment was flawed, with publicly traded companies exploiting loopholes and ultimately being in a hurry to come back sums of several million dollars; well-endowed private organizations likewise loot the kitten; opportunistic individuals abuse the allocated money; fraudsters with no legitimate claim to entities on their hay request; and billions of unclaimed affected loans after potential recipients were scared disturbing forgiveness settings.
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But like the last set of 284 billion dollars in additional PPPs stimulus (a performance of 11th congress hour, $ 900 billion spending program which passed just before New Years) finds its way to lenders and eventually small business owners, some people are hoping they will earn more than a red dime – literally.
The New York Times reports that, while Omni Hotels around the world deployed their considerable accounting knowledge to push PPP to its limits (and would have amassed the winnings), a range of small business owners and the self-employed have been virtually stranded. This includes a Texas Chiropractic Service who received $ 1 in aid and a Freelance photographer based in Minnesota whose federal loan was $ 95, by Times.
Although the Small Business Administration did not respond to the Times‘Asking for comment, the disparate bargains appear to stem from the language in the initial rollout that favored companies with employees over payroll and / or demonstrable profits over individual companies with tighter ranks and margins.
In addition, small lenders willing to link with these micro-loans generally received an almost negligible proportional fee for their efforts, rendering PPP virtually inert for truly self-sufficient businesses and independent community financial institutions.
However, there might be a silver lining in this new iteration. For more information on how to navigate PPP in 2021 to a meaningful end, read Contractor Last failure of contributor Mat Sorensens according to the evolving modalities of the program.
Kenny Herzog is currently Director of Digital Content at Entrepreneur Media. Previously, he was the editor or editor of several online and print publications, and contributed his signing to outlets such as Rolling Stone, New York Magazine / Vulture, Esquire, The Ringer, Men’s Health, TimeOut New York, AV Club, Men’s Journal, Mic, Mel, Nylon and many more.