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Shuttered US Small Businesses Desperately Await Government Loans

Chris Simkins

   Benjamin Velazquezspenthoursfilling outonlineapplicationsforgovernment
   loanstoprovide afinanciallifeline for
   hisWashington-based,family-runcateringcompanythat saw business dry up
   when much of America went on lockdown.With each passing day,hegrowsmore
   desperate for the funds to arrive.

   "It's been a difficult time for my15-year-oldbusiness," Velazqueztold
   VOA."We are looking fora $22,000 loannow. It will allow me to bring
   back all my employees and keep my business going when things open
   again."

   Catering by Benjaminis one of millions ofAmericansmall
   businessesteetering on the edge of financial ruin during the COVID-19
   pandemic.The U.S. Congresshas approved two federal aid packagestotaling
   more than $600 billionto help small businesses,butmany owners,
   includingVelazquez,have yetto see a dime.

   Worker protections

   Nearly half of America's private sector workforce is employed by small
   businesses.Underthe Paycheck Protection Program (PPP), thefederal
   governmentis offeringcompanieswithfewerthan500 workers forgivable loans
   of up to $10 millionin order to retain workers idled during the
   pandemic. The Small Business Administration, a federal
   agency,backstheloans butownersmustapply through participating banks or
   other community lenders.

   Velazquezclosed hiskitchenMarch13,sending offthelast meals
   toWashington-areaschoolsand day care centers.Helaid off 10
   workerswhennon-essential'Żbusinesseswere ordered to shut down to stop
   the spread of the coronavirus.

   "Ineed $6,000 aweekfor employee salariesand food. Ihave confidence in
   the SBA,but they are overwhelmed with loan requests."Velazquezsaid."I
   know other small business owners who are waiting and trying to work
   with banks to get the money."

   Velazquez isn't alone, as businesses have shuttered nationwide.In New
   Orleans, Louisiana,thousands ofrestaurantworkershave beenlet go or
   furloughed since March.

   "We need help quickly,"MelvinRodrigue,who
   operatesGalatoire's,acentury-oldrestaurantin the city's French Quarter,
   told Reuters, noting that he has laid off nearly half of his 160
   employees."We're not quite there yetin getting the assistance."

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