Thousands Of Small Businesses May Go Under Before Congress Approves More Funding After Paycheck Protection Program
CHICAGO (CBS) -- Thousands of small businesses have been put on hold after the feds announced that its $349 billion Paycheck Protection Program is out of money. And as CBS 2 Investigator Pam Zekman reports many may be out of business before Congress approves more funding.
"I'm scared to death. I don't know what's going to happen," said Steve McGuire, the owner of Devon Plumbing.
Steve has already been forced to lay off half his staff, going down from 10 to five employees due to the COVID-19 pandemic.
"We normally get seven or eight service calls a day on top of our construction and rehab business," he said. "The last three weeks I've gotten maybe two calls a week."
That's because although plumbers are considered an essential service and can still work, COVID-19 fears have blocked them from working for regular customers.
"Most of the condominium buildings we work in workers are locked out of right now unless it's an emergency, no hot water, sewage backup, leaks that are causing property damage," he said.
To help stay in business Steve applied for a $50,000 low interest city loan but was told the city was sorting through thousands of applications and "we appreciate your patience."
Since then, "I haven't heard anything," Steve said.
To pay his staff Steve applied for the federal Paycheck Protection Program supplying all of the required records for a $98,000 loan. He got an email that his application was received on April 3. Thursday he was notified the Paycheck Protection Program was out of money.
Now he has to hold on until Congress approves additional funding.
"If I don't get some help from the government, there's a 90% chance I'll lose my business," he said.
It's a business he built up over 43 years.
"I hate to see it all disappear within a couple of months. It's shocking that that could happen," he said.
