'Mom & Pop' shops worry they will be squeezed out of small business coronavirus aid

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Family-owned restaurants fear they could be pitted against larger competitors, hotel chains and potentially investment funds in a race starting on Friday for a $349 billion pot of money the U.S. government will offer businesses hard-hit by coronavirus.

FILE PHOTO: Empty restaurant tables sit on a plaza on Pennsylvania Avenue in during the coronavirus outbreak in downtown Washington, U.S. March 31, 2020. REUTERS/Jonathan Ernst

For certain small business loan purposes, the term typically refers to companies that employ fewer than 500 workers. But Congress and the Trump administration agreed to include large hotel and restaurant chains, as long as they employed fewer than 500 workers in a given location. “Who needs the support most desperately - the Big Mac or the Small-Fry?” the management of The Eleanor restaurant in Washington wrote on Instagram last week.

Before Congress could even pass the economic stimulus, consultants advised clients to ready their applications for “forgivable” loans that can turn into grants if the money is used for payroll, rent and other expenses. The restaurant industry lost $25 billion in sales and 3 million jobs in the first three weeks of March, according to the National Restaurant Association, a trade group that represents various-sized food establishments.Health-club and beauty-salon chains are also clamoring for a piece of the pie.

Nearly 20 members of Congress also want start-up companies backed by venture capital firms to participate in the program, arguing that they created 3 million jobs in 2019.

 

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They need to focus on staying alive first.... anything else after.

RNC: “The PaycheckProtectionProgram is launching tomorrow. Nearly $350 billion in loans will be available to small businesses including sole proprietors. These loans are up to 100% forgivable as long as employers keep paying their workers.' – realDonaldTrump GOPChairwoman

They won’t. It’s a broad definition of “small business,” all small businesses will be taken care of, even single-proprietors w/themselves as the only employee. Watch the press conferences, they’ve thought of everything...

Reuters = rothchilds. Doom and gloom, trying to kill our country

Oh that's silly, there isn't going to be any aid whatsoever until we elect a leader in November. JoeBiden

A valid concern. The US government only assists large corporation. Even people are expendable.

Of course they will. The bailout isn't for the little guy.. it never is. When will they learn.

Not if they all band together & fight for their right. Mom & Pop businesses are the cornerstone of USA. I love all the small local stores & am doing everything I can to continue to support them. Corporations/big biz will never take care of customers the way the locals can & do.

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