More than half of businesses that secured Paycheck Protection loans have used those funds up and may need to lay off employees after all. Recall that these loans were meant to be used on payroll so that businesses could avoid layoffs during the pandemic. But that money was rolled out in early spring and that feels like a lifetime ago in pandemic time.
The loan was originally designed to cover employers’ payroll costs for up to two months but was later extended to 6 months. Most businesses only secured two months of payroll costs though due to early rules so they are coming to the end of that time period and there is, as my mom used to say, too much month at the end of the money. There are talks of a second round of PPP loans, which could save many jobs, but without that certainty, more layoffs will be a certainty.