COVID-19 Update: Small Businesses Struggling to Survive

Loan problems frustrating small business owners

As many businesses are either closed during the coronavirus pandemic or losing customers, they are seeking loans and other financial assistance from the federal government. Some loan applicants are facing technical glitches and confusion about the lending terms, while others have been approved but still haven’t received their funding, USA Today reports.

As their cash supply dwindles, many small business owners are hoping their companies will still be in existence after the pandemic. A recent survey conducted by the National Federation of Independent Business found about half of small employers can only survive two months in the current environment.

U.S. Congress passed a relief package providing businesses with fewer than 500 employees Payment Protection Plan (PPP) loans of up to US$10 million that are fully guaranteed by the Small Business Administration (SBA). Seventy percent of small businesses have at least tried to apply for the PPP loans after the program was set up on April 3. Yet many applications could not be processed because of overwhelming demand. So far about 587,000 loans have been approved for about $151 billion, according to the SBA. Yet just a fraction of the money has gone out.

The Economic Injury Disaster Loan (EIDL) program, which can tide businesses over in the meantime, is experiencing its own problems. The EIDL program provides emergency grants of up to $10,000 and low-interest loans up to $2 million. But that program has seen overwhelming demand, and borrowers are not getting the money quickly as intended. As of Friday morning, nearly 4 million businesses and nonprofits have applied for EIDL funding for a total of $383 billion. However, Congress has only allocated $17 billion for the program. The shortfall has led the SBA to cap the amount of money the agency can give out in loans to just $15,000 per applicant.

New masks eliminate germs on contact

As workers scramble for gloves, face masks, and other personal protective equipment (PPE) to keep them safe during the pandemic, a new face mask technology is being tested in Arizona, FOX-TV reports.

The mask is made from cotton twill that goes through a 13-hour process converting it to polypyrrole, an antimicrobial and antibacterial fabric. Germs are killed as they come in contact with the mask.

This PPE will not only protect wearers from other people, it also will also protect those who come in contact with the wearer. If you happen to be a coronavirus carrier, as you exhale into the mask it will kill the germs or viruses you’re exhaling.

The masks are washable and reusable with no changes to its biocidal properties during washing.