“You have businesses that even if they were to receive funding through the Paycheck Protection Program they still would have trouble staying open because overhead costs in the Bay Area and fixed costs in the Bay Area are significantly higher than in other places.”
Small Business News
“There are communities that by in large are not being able to tap into a commercial lending product.
According to the Small Business Administration, the average loan that was approved under PPP was $206,000. It’s a number that skews high, which suggests that larger companies are snagging a lot of these loans, said Awesta Sarkash, the government affairs manager at Small Business Majority, an advocacy group focused on advancing the needs of small businesses. Based on data from the Federal Reserve, the majority of small businesses — 59 percent — typically seek $100,000 or less when they take out loans.
"While providing more funds to these assistance programs is necessary, we've already seen that they do not provide the quick relief that would help small businesses now and in the future," John Arensmeyer, founder and CEO of Small Business Majority, said in a statement on Tuesday, saying the program "fails to address a critical carveout that allowed publicly-traded companies, large restaurant groups, and hedge funds to apply for and deplete the PPP fund."
Critics have said that smaller businesses faced difficulty getting money from the PPP shortly after its launch, while many larger companies were able to get loans, in part, because they already had relationships with the banks that were distributing the PPP loans. The Small Business Majority, an advocacy group for entrepreneurs, shared examples of businesses it works with that struggled to obtain PPP loans.
Mark Herbert, vice president of California at Small Business Majority added, “In order to restore California’s economy and make sure that Main Street is thriving again, more needs to be done by our lawmakers in Congress. Refilling the PPP and (Economic Injury Disaster Loans) coffers is simply a Band-Aid to a gaping wound. Small businesses need unrestricted, robust grant assistance.”
Across the state, 92 percent of small business owners say they have been harmed by COVID-19, according to an industry survey released on Tuesday. The Small Business Majority poll of 167 California businesses found that 4 in 10 have adjusted the work schedules of their entire staff and that 44 percent have already closed due to ongoing restrictions or plan to do so in the next two months.
As the U.S. Senate prepares to vote to add additional funding to the depleted Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL), a new scientific poll released today reveals the economic peril of California’s small businesses. Additionally, the poll shows vast support for robust, direct grant assistance and other relief measures to help small businesses stay afloat and fully recover from the crisis.
Last Friday, City staff coordinated and executed the staffing, transportation, and delivery of 1,100 meals to Fremont and Homestead high schools. The Fremont Union High School District was in need of meals and Lazy Dog and Pineapple Thai—both located at Main Street Cupertino—were able to meet that need by providing 550 meals each.
Hosted by the City of Cupertino in partnership with the NorCal Small Business Development Center, NorCal Small Business Majority, and Cupertino Chamber of Commerce.
"Most of the money has gone to much larger entities and the very small entities for the most part have been left behind," said John Arensmeyer of the Small Business Majority – an advocacy group for small companies. "We’re dealing with finite dollars," he added. "Even if more money is put into the system, we really need to prioritize very small businesses over publicly traded companies."