Less than two weeks after launch, all the $349 billion allotted to small businesses within the CARES Act has been dedicated, which means banks now not have the backing of the US Treasury to present forgiveable loans to small businesses to cowl payroll prices.
Until Congress approves one other reduction invoice, lending may come to a grinding halt.
However, a $600 billion Main Street Lending Program from the Federal Reserve presents one other path for entrepreneurs who want $1 million or more to stay afloat. Though these loans lack the trail to forgiveness that made the Paycheck Protection Program so interesting, the Fed is backing low-cost financing that might assist some businesses make it by way of the worst of the pandemic.
Business Insider spoke with Bob Prosen, a small-business adviser, about which steps entrepreneurs ought to take in the event that they plan to stay in enterprise.