The COVID-19 pandemic left small businesses high and dry, with markets closed as well as demand and supply positions worsening. Many companies are unable to cope with the situation due to their limited budgets. Therefore, PPL loans were particularly created to help these businesses, but most of them were not getting any help. Now, as a gesture of kindness and with Govt. pressure, hundreds of public sector companies have voluntarily returned their PPP loans to let deserving small businesses access the funds.
The PPP [ Paycheck Protection Program] Loan was created as a law on March 27, 2020, to help small businesses tackle their financial obligations during the coronavirus pandemic. The law was part of the CARES Act. Its primary goal is to help businesses and not-for-profit organizations get much-needed funds. With the loan, they can pay their employees, rent, interest payments toward current debt, utilities, and group health insurance. PPP Loans are made available to businesses and non-profit- organizations that have less than 500 employees.
Now, the government has revealed that many undeserving public companies have also wrongfully accessed PPP loans. Consequently, the funds under these loans were exhausted too early. After this disclosure, hundreds of big corporates willingly returned the loans. As a result, many more small businesses can now use the remaining funds under these loans.
The gesture of kindness shown by hundreds of companies by returning PPP loans is commendable. They have return loans ranging from half a million to 45 million dollars. It surely is a great help to the small entrepreneurs as they can now have access to funds from the lenders.
Pay Forward Cards
Considering the pandemic crisis, Designhill, the leading creative marketplace, has been at the forefront of helping small businesses in its own way. The marketplace had already offered free logos for the companies affected by the ongoing crisis. Now, it has launched a dedicated platform SOSlocalbusiness.com, a non-profit site to help small entrepreneurs deal with the crisis. They can use this site as a resource to tackle the crisis.
Using this site, they can sell their Pay Forward Cards to customers. Customers can buy these cards as a way to pay cash immediately in advance to the businesses. Later, customers can go to the stores and buy those products from them by showing the cards. The cards thus let customers show an act of kindness towards such businesses. These cards are available from the site in the form of gift cards and vouchers.
In this infographic, we’ve shared the highlights on how the companies have stepped forward to return the PPP loans and help small businesses:
- The government had earmarked $350 billion as the initial funding under the PPP loans.
- The main purpose was to help small businesses pay their rents, salaries to the employees, and meet many other obligations.
- Due to the limited amount of funds with the government, only the businesses having less than 500 employees were eligible for the loan.
- But soon, the funds earmarked for the loan dried up since many undeserving companies took away the loan.
- Considering this and following the government warnings, such companies started returning their PPP loans.
- Over 300 public sector companies had availed the loans. They have returned these loans as an act of kindness to help smaller businesses have access to the funds.
- These public companies have returned over $160 million so far out of the overall $900 million that they borrowed as PPP loans.
- However, there is still a long way to go as far as helping small businesses with finances is a concern.
- Nearly 80% of the small businesses that applied for the PPP loans have not yet received the funds. The government had earmarked $350 billion as the initial funding under the PPP loans.
- Considering that, Designhill and its platform Soslocalbusiness have come forward to help small businesses meet their immediate cash requirements.
SOSLocalBusiness.com: A Not-For-Profit Initiative By Designhill
The COVID-19 pandemic has hit businesses hard, no matter the scale. Designhill has started a not-for-profit initiative to financially support small businesses that are facing the calamitous consequences of COVID-19. Through this platform, businesses can request their regular/loyal customers as well as local communities to support them in many ways. Click to know more.
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Here Is The Infographic Showing Some Of The Major Companies That Returned Their PPP Loans
Get The Infographic As A PDF:
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The benefit of PPP loans could not trickle down to all the small entrepreneurs as many other undeserving companies took the loans and exhausted the resources. Now, as an act of kindness, many such companies have returned their loans so that others can have these loans. Designhill, with its Pay Forward Cards, also is helping such businesses in its own way.