In the last few weeks, we have had to lay off our entire restaurant staff of 11 people, as well as a dozen more from our catering company.
On March 18, Sen. Susan Collins introduced a small-business relief bill. I was under the impression that it would help my business and employees – until I looked further.
Paycheck Protection Program loans are supposed to pay eight weeks of payroll with a small portion for rent, utilities, insurance and other costs. However, for a loan to be forgiven, the borrower’s business must be at full staffing by eight weeks after receiving the money. Times are uncertain. Most don’t know how long it will take their businesses to reopen and recover. Because of the tight deadline, Maine businesses are struggling to hire back their full staff. The security of unemployment benefits during a pandemic is simply safer for workers who are afraid of the uncertainty after a meager eight weeks.
Small businesses are forced to take the strain off federal unemployment but are pitted against the security of those benefits. If we fail to get them all on board, the loan term and full payback is for a devastating 18 months.
A bigger problem: Those who need the funds simply can’t get them. Nationally, only 5.8 percent of those who’ve applied for PPP loans have received them. Studies show small businesses owned by women and people of color have been even less likely to get loans. That’s because restaurant and hotel chains can apply for PPP loans as long as each location has under 500 employees. The result is 4 percent of borrowers getting nearly half of the available funds.
The business owners of Maine – the ones who took a risk to start a company and contribute to the economy of Maine – are desperately awaiting the support Sen. Collins is touting.
Sen. Collins, we need real support, not a public relations tour. Maine livelihoods are at stake.
Christian Hayes
owner and chef, The Garrison and Dandelion Catering
Yarmouth
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