As the coronavirus continues to sweep its way through the nation, businesses both small and large are still struggling to recover from the economic shutdown.
And some are closing their doors for good.
Around 300 companies that received as much as half a billion dollars in government loans amid the coronavirus pandemic have filed for bankruptcy, according to a Wall Street Journal analysis.
Many of the companies, which employ a total of 23,400 workers, say the funds from the Paycheck Protection Program weren’t enough to keep them afloat with the lack of additional stimulus payments taking a toll on their businesses.
In October, the Trump administration made a $1.8 trillion stimulus offer to House Democrats that contained another round of direct payments and $400 weekly federal unemployment benefits, among other measures.
But, Nancy Pelosi rejected the plan and blasted it as inadequate.
A month later and Congress remains gridlocked on the relief package, both parties disagreeing on the size and scope.
Back in April, the government awarded a total of $525 billion in PPP loans to companies, according to the WSJ. The total amount lent to companies that went bankrupt is between $228 and $509 million.
Keith Clark, owner of Waterford Receptions – a popular wedding and events venue in Northern Virginia – ran his business for 20 years.
But, due to the pandemic, he is closing his doors.
“It hit, we had to shut down, and cash-wise it couldn’t have been worse timing,” he said. “Not only could we not keep employing people, we couldn’ pay utilities, and it takes a pretty decent amount of money to keep two buildings going.”
Clark put his business into chapter 7 bankruptcy to repay creditors by selling the company’s assets. He also expects to file for personal bankruptcy and auction off his home to pay creditors.
With the coronavirus still around, businesses need aid now more than ever.
Get to work, Nancy. America needs your help.
