Hundreds of companies across America that filed for coronavirus aid and relief have now gone out of business since the money ran out, according to a new analysis from The Wall Street Journal.
- Close to 300 companies received about $500 million pandemic-related government loans and then filed for bankruptcy afterward, the Wall Street Journal reports.
- The companies employed close to 23,400 workers in general.
- The companies said the Paycheck Protection Program didn’t provide enough aid to keep the companies in business. And the lack of a stimulus check made it hard for these companies to receive fresh income.
More businesses close down
The businesses that received the PPP loans weren’t the only ones to suffer because of the coronavirus pandemic. Fortune reports that about 100,000 businesses that temporarily shut down due to the pandemic are now fully out of business.
Kevin Kuhlman, the vice president of federal government relations for the National Federation of Independent Business (NFIB), a nonprofit small-business advocacy group, told Fortune those problems may persist in the future.
- He said “if economic trends continue at this rate, one in five business owners anticipates they won’t make it until the end of the year,”