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| $130 Billion in Small-Business Aid Still Hasn’t Been Used | $130 Billion in Small-Business Aid Still Hasn’t Been Used |
| (8 days later) | |
| In April, when the federal government offered $349 billion in loans to small businesses reeling from government shutdown orders in the pandemic, the funding ran out in just 13 days, prompting Congress to swiftly approve a second round of $310 billion. | In April, when the federal government offered $349 billion in loans to small businesses reeling from government shutdown orders in the pandemic, the funding ran out in just 13 days, prompting Congress to swiftly approve a second round of $310 billion. |
| Small businesses have since grown more wary of taking the money. | Small businesses have since grown more wary of taking the money. |
| As of Tuesday, more than $130 billion was left in the fund, known as the Paycheck Protection Program. Even more striking was the fact that on many days last month, more money was being returned than borrowed, according to data from the Small Business Administration, which is overseeing the program — highlighting its messy execution and confusing rules that deterred some small businesses from using the money. | As of Tuesday, more than $130 billion was left in the fund, known as the Paycheck Protection Program. Even more striking was the fact that on many days last month, more money was being returned than borrowed, according to data from the Small Business Administration, which is overseeing the program — highlighting its messy execution and confusing rules that deterred some small businesses from using the money. |
| Thousands of companies that got loans have sent the money back, according to lenders. For some owners, the program’s terms were too restrictive; for others, the criteria for loan forgiveness was too murky. Some public companies that received these loans returned them after a public outcry, and in the initial rush, some borrowers accidentally got duplicate loans that they, too, returned. | Thousands of companies that got loans have sent the money back, according to lenders. For some owners, the program’s terms were too restrictive; for others, the criteria for loan forgiveness was too murky. Some public companies that received these loans returned them after a public outcry, and in the initial rush, some borrowers accidentally got duplicate loans that they, too, returned. |
| A total of around $12 billion was returned, Treasury Secretary Steven Mnuchin said at a Senate hearing on Wednesday. The amount of loans outstanding under the program dropped to $510.2 billion at the end of May, from $513.3 billion in the middle of the month, according to data from the Small Business Administration. | A total of around $12 billion was returned, Treasury Secretary Steven Mnuchin said at a Senate hearing on Wednesday. The amount of loans outstanding under the program dropped to $510.2 billion at the end of May, from $513.3 billion in the middle of the month, according to data from the Small Business Administration. |
| By Tuesday, the amount of approved loans had inched back up to $511.4 billion — indicating that changes Congress made to the program last week to make it less restrictive could be pushing more money out the door. | By Tuesday, the amount of approved loans had inched back up to $511.4 billion — indicating that changes Congress made to the program last week to make it less restrictive could be pushing more money out the door. |
| But obstacles remain. The program’s chaotic execution has “chilled the willingness of many small businesses to even apply for loans during the second round of P.P.P. funding, and has caused many businesses to return disbursed loans out of fear of doing something wrong,” Tony Wilkinson, the chief executive of the National Association of Government Guaranteed Lenders, a trade group, said last week at a hearing of the Pandemic Response Accountability Committee, an oversight group. | But obstacles remain. The program’s chaotic execution has “chilled the willingness of many small businesses to even apply for loans during the second round of P.P.P. funding, and has caused many businesses to return disbursed loans out of fear of doing something wrong,” Tony Wilkinson, the chief executive of the National Association of Government Guaranteed Lenders, a trade group, said last week at a hearing of the Pandemic Response Accountability Committee, an oversight group. |
| The turn of events is notable for a signature program of Congress’s $2.2 trillion coronavirus relief package, which only a couple of months ago was caught in an intense borrowing frenzy by desperate business owners. After all, small businesses are still in distress. Even as states begin to reopen, millions of stores around the country remain shuttered and could go out of business. | The turn of events is notable for a signature program of Congress’s $2.2 trillion coronavirus relief package, which only a couple of months ago was caught in an intense borrowing frenzy by desperate business owners. After all, small businesses are still in distress. Even as states begin to reopen, millions of stores around the country remain shuttered and could go out of business. |
| On Wednesday last week, Congress moved to loosen the program’s rules and give businesses more flexibility in spending their aid, and President Trump signed the bill on Friday. The change was widely praised by small-businesses advocacy groups and will help many borrowers. | On Wednesday last week, Congress moved to loosen the program’s rules and give businesses more flexibility in spending their aid, and President Trump signed the bill on Friday. The change was widely praised by small-businesses advocacy groups and will help many borrowers. |
| The amended rules could help the remaining $130 billion move faster. “My expectation is that we will definitely see businesses that were on the sidelines now take it," Mr. Mnuchin said. | The amended rules could help the remaining $130 billion move faster. “My expectation is that we will definitely see businesses that were on the sidelines now take it," Mr. Mnuchin said. |
| But having the terms of their loans revised on the fly yet again — which has happened repeatedly since the program began in April — is a nightmare for borrowers as they struggle to salvage their companies. | But having the terms of their loans revised on the fly yet again — which has happened repeatedly since the program began in April — is a nightmare for borrowers as they struggle to salvage their companies. |
| “The boundaries move like a video game,” said Caren Griffin, the owner of Spa Universaire, a hotel spa in downtown Denver. Her business has been shut down since mid-March and won’t reopen until July, at the earliest. | “The boundaries move like a video game,” said Caren Griffin, the owner of Spa Universaire, a hotel spa in downtown Denver. Her business has been shut down since mid-March and won’t reopen until July, at the earliest. |
| Ms. Griffin was on the verge of returning her $66,272 loan because she didn’t think she would be able to use it within eight weeks, as the program originally specified. The new changes give her 24 weeks, allowing her more time to decide whether to use the money when — and if — she reopens. | Ms. Griffin was on the verge of returning her $66,272 loan because she didn’t think she would be able to use it within eight weeks, as the program originally specified. The new changes give her 24 weeks, allowing her more time to decide whether to use the money when — and if — she reopens. |
| She isn’t sure she will. Refitting her spa to comply with new safety guidelines will be expensive, and no one knows when customers will be willing to get high-touch services like massages and facials. Ms. Griffin, who is 63, wonders if she would be better off closing the business and retiring. | She isn’t sure she will. Refitting her spa to comply with new safety guidelines will be expensive, and no one knows when customers will be willing to get high-touch services like massages and facials. Ms. Griffin, who is 63, wonders if she would be better off closing the business and retiring. |
| “I’m running through a dozen different scenarios for what our cash-flow structure might look like if we reopened with changes in our hours and services,” she said. “We won’t go back to normal. That’s clear.” | “I’m running through a dozen different scenarios for what our cash-flow structure might look like if we reopened with changes in our hours and services,” she said. “We won’t go back to normal. That’s clear.” |
| For many small businesses that depend on foot traffic, like restaurants and nail salons, even the more relaxed relief terms might not be enough. | For many small businesses that depend on foot traffic, like restaurants and nail salons, even the more relaxed relief terms might not be enough. |
| “I cried the day I sent it back,” said Shelly Ross, the owner of Tales of the Kitty, a cat-sitting service in San Francisco, who recently gave up on using her $75,000 loan and returned the money. “I thought this would save my business, but I was worried about being financially ruined if it wasn’t forgiven, and no one could give me any real answers about that.” | “I cried the day I sent it back,” said Shelly Ross, the owner of Tales of the Kitty, a cat-sitting service in San Francisco, who recently gave up on using her $75,000 loan and returned the money. “I thought this would save my business, but I was worried about being financially ruined if it wasn’t forgiven, and no one could give me any real answers about that.” |
| Ms. Ross started Tales of the Kitty in 2003 and expanded it into a thriving venture with 14 employees and a packed schedule of 10,000 client visits a year. In March, her sales plummeted because of the pandemic, forcing her to lay people off. | Ms. Ross started Tales of the Kitty in 2003 and expanded it into a thriving venture with 14 employees and a packed schedule of 10,000 client visits a year. In March, her sales plummeted because of the pandemic, forcing her to lay people off. |
| To have their loans fully forgiven, companies must keep the same number of employees on the payroll as before the pandemic, at the same wages. That’s a hard bar to clear for business owners whose ventures remain shut. Ms. Ross expects her sales to stay slow at least through Thanksgiving. | To have their loans fully forgiven, companies must keep the same number of employees on the payroll as before the pandemic, at the same wages. That’s a hard bar to clear for business owners whose ventures remain shut. Ms. Ross expects her sales to stay slow at least through Thanksgiving. |
| The paycheck program was largely meant to keep workers off unemployment rolls by funneling money to their employers, and it made progress toward that goal. Job numbers released on Friday showed gains in industries that received small-business loans and suggested that the program had helped offset at least some of the economic damage caused by the shutdown. | The paycheck program was largely meant to keep workers off unemployment rolls by funneling money to their employers, and it made progress toward that goal. Job numbers released on Friday showed gains in industries that received small-business loans and suggested that the program had helped offset at least some of the economic damage caused by the shutdown. |
| Updated July 7, 2020 | |
| The coronavirus can stay aloft for hours in tiny droplets in stagnant air, infecting people as they inhale, mounting scientific evidence suggests. This risk is highest in crowded indoor spaces with poor ventilation, and may help explain super-spreading events reported in meatpacking plants, churches and restaurants. It’s unclear how often the virus is spread via these tiny droplets, or aerosols, compared with larger droplets that are expelled when a sick person coughs or sneezes, or transmitted through contact with contaminated surfaces, said Linsey Marr, an aerosol expert at Virginia Tech. Aerosols are released even when a person without symptoms exhales, talks or sings, according to Dr. Marr and more than 200 other experts, who have outlined the evidence in an open letter to the World Health Organization. | |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles. | Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles. |
| A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. | A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. |
| The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. | The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. |
| The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| More than 4.5 million companies, from solo gig workers and small restaurateurs to retailers and professional services firms with fewer than 500 employees, got help. For most, it was a lifeline. | More than 4.5 million companies, from solo gig workers and small restaurateurs to retailers and professional services firms with fewer than 500 employees, got help. For most, it was a lifeline. |
| But many lenders are ready to be done with the program. Even though the government will keep processing loans until June 30, Wells Fargo stopped taking new applications last month. So did many community banks, including OceanFirst, a regional bank in Toms River, N.J., that has lent $500 million to 3,000 businesses. | But many lenders are ready to be done with the program. Even though the government will keep processing loans until June 30, Wells Fargo stopped taking new applications last month. So did many community banks, including OceanFirst, a regional bank in Toms River, N.J., that has lent $500 million to 3,000 businesses. |
| Requests had slowed to a trickle, said Christopher Maher, the bank’s chief executive. He cut off new lending because he wanted to pivot his employees toward the next major program challenge: loan forgiveness. | Requests had slowed to a trickle, said Christopher Maher, the bank’s chief executive. He cut off new lending because he wanted to pivot his employees toward the next major program challenge: loan forgiveness. |
| “It’s going to be much more difficult to work through the repayment calculations and documentation than it was to make these loans in the first place,” Mr. Maher said. | “It’s going to be much more difficult to work through the repayment calculations and documentation than it was to make these loans in the first place,” Mr. Maher said. |
| The paperwork for proving that a loan complied with the terms is extensive and complicated; the Small Business Administration’s 11-page application for loan forgiveness is much more intricate than the loan application itself. Any portion that is not forgiven becomes a debt that must be repaid within five years. (The initial term was two years.) | The paperwork for proving that a loan complied with the terms is extensive and complicated; the Small Business Administration’s 11-page application for loan forgiveness is much more intricate than the loan application itself. Any portion that is not forgiven becomes a debt that must be repaid within five years. (The initial term was two years.) |
| The lack of clarity around loan forgiveness cemented Ms. Ross’s decision to return her loan. She considered simply paying her workers to stay home for eight weeks, which the program allows, but she worried about having to lay them off again when the money ran out. | The lack of clarity around loan forgiveness cemented Ms. Ross’s decision to return her loan. She considered simply paying her workers to stay home for eight weeks, which the program allows, but she worried about having to lay them off again when the money ran out. |
| Then, the week after she got her loan, the Small Business Administration released its forgiveness application. Ms. Ross tried to run the calculations for her business, but her staff is mostly part-time employees with variable hours. She consulted her accountant, her bookkeeper, a lawyer and her lender to figure out how much of her loan would qualify for elimination. | Then, the week after she got her loan, the Small Business Administration released its forgiveness application. Ms. Ross tried to run the calculations for her business, but her staff is mostly part-time employees with variable hours. She consulted her accountant, her bookkeeper, a lawyer and her lender to figure out how much of her loan would qualify for elimination. |
| None could give her definitive answers. Scared she would be stuck with a big debt, Ms. Ross sent the money back. | None could give her definitive answers. Scared she would be stuck with a big debt, Ms. Ross sent the money back. |
| Many trade groups for lenders and small businesses, such as the Consumer Bankers Association and the Small Business Majority, have asked for blanket forgiveness for loans of less than $150,000. So far, the Small Business Administration and the Treasury Department — which is calling the shots on most of the paycheck program’s terms — have not indicated any willingness to grant that. | Many trade groups for lenders and small businesses, such as the Consumer Bankers Association and the Small Business Majority, have asked for blanket forgiveness for loans of less than $150,000. So far, the Small Business Administration and the Treasury Department — which is calling the shots on most of the paycheck program’s terms — have not indicated any willingness to grant that. |
| Adam Markowitz, an accountant in Florida who is working with dozens of clients who took paycheck loans, said he was unable to figure out whether his own loan, for $34,500, would be fully forgiven. He’s waiting for further guidance on the many unresolved technical questions. | Adam Markowitz, an accountant in Florida who is working with dozens of clients who took paycheck loans, said he was unable to figure out whether his own loan, for $34,500, would be fully forgiven. He’s waiting for further guidance on the many unresolved technical questions. |
| “The only consistent thing about this program is that it’s been a mess at every stage,” he said. | “The only consistent thing about this program is that it’s been a mess at every stage,” he said. |