June 29, 2020

Thousands of companies that borrowed from U.S. relief fund plan layoffs

By STEPHEN GANDEL

A significant number of U.S. small business owners who got money from the government-backed small business coronavirus relief program say they will end up laying off hundreds of thousands of workers anyway.

As many as 653,000 small businesses that were awarded forgivable, 1% loans from the Paycheck Protection Program could begin cutting employees as early as next month as their federal funding runs out. What’s more, 70,000 of those businesses are expected to lay off at least 10 workers each.

Those findings come from a survey from the National Federation of Independent Businesses that was released this week. It found that 14% of the 4.6 million companies that have received funds from the Paycheck Protection Program are considering laying off workers when they deplete their government loan funds.