Is there life after the Payroll Protection Program for troubled small businesses?
Many small businesses obtained help from the federal government during the COVID-19 pandemic by applying for and receiving a Payroll Protection Loan from the Small Business Administration Payroll Protection Program (PPP) that was designed to provide payroll support for employers. The program moved employees off state unemployment programs and enabled employers to bring them back to work after receiving a forgivable loan to support payroll and certain overhead expenses. The program was successful allowing many employers to bring back their employees, but the money only covers eight weeks of payroll. What happens if a business is still unable to reopen fully and recover sufficient cash flow to support the business?