Hundreds of businesses that have received recovery assistance have failed

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About 300 companies that received up to half a billion dollars in government loans linked to the pandemic have declared bankruptcy, according to a Wall Street Journal analysis of government data and court records.
Many companies, which altogether employ around 23,400 workers, say paycheck protection program funds weren’t enough to keep them running as the coronavirus and lack of additional stimulus payments weighed on their businesses .
The total number of businesses that have failed despite obtaining PPP loans is likely much higher. The Journal analyzed only the program’s large borrowers, who made up about half of all loans, but only 13.5% of total participants. And many small businesses are content to liquidate when they run out of cash rather than file for bankruptcy.
The government has provided a total of $ 525 billion in PPP loans to 5.2 million businesses since April, according to the Small Business Administration. The SBA only released data on the largest borrowers, which the Journal linked to bankruptcy filings.
The total amount loaned to companies that have gone bankrupt is between $ 228 million and $ 509 million – the government publishes a range for loan amounts. Half of the 285 companies identified by the Journal have filed for bankruptcy since August. Dozens of beneficiaries, who come from almost every state, cited the pandemic as one of the main reasons for bankruptcy.

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