Forbes Under 30 Leaders Find Innovative Solution Addressing Systemic Issue Of Access To Capital For Small Businesses
14 Sep 2020
The coronavirus pandemic has taken a catastrophic toll on America’s small businesses. Those with small cash reserves are owed nearly $1 trillion by suppliers, and according to a recent survey by Goldman Sachs, 85% of small business owners say their personal finances have been hurt due to the crisis, while 64% say their cash reserves will last less than three months.
When the government rolled out the first round of Paycheck Protection Program funding on April 3, the $349 billion in emergency relief ran out in less than two weeks, and the program was widely criticized, as much of the money went to the best-connected businesses with existing banking relationships—not the neediest or most deserving. Round two of the program went into effect on April 27 with additional $310 billion in funding, but a June 12 report from the Small Business Administration shows $130 billion has been left unclaimed.