Small business owners go bankrupt as lenders earn millions

The government of the United States decided to initialize the Coronavirus Relief Fund of $350 Billion. But, unfortunately, the fund was extinguished in just two weeks in which the lenders alone received a huge chunk of that fund; that is, they received at least $6 Billion. After witnessing this, many small business owners got outraged as they did not even receive a single penny.

Information regarding the Coronavirus Relief Funds program:

The Small Business Administration opened two programs, the $350 Billion, which would be given to business companies consisting of employees of 500 or below. This fund would act as a loan and could even be waived if the owners use it to pay their employees. The other program was a $2 million grant, which promised to aid any business which has suffered significant losses in these times of pandemic.

But, alas, funds of both the programs dried up, this aggravated many owners of small and local businesses.

Voices of the small-time business owners:

Candace, a small-time freight shipping company owner, stated that this pandemic had been hard on them, and they expected aid from the government.

Doug Yurubi, an owner of an inn located in New York, mentioned that he had applied for the loan right when it was released. He faced no problems while using and had submitted the required documents. But, after a while, the loan did not get approved, and he did not receive even a single penny.

The total amount approved by the Small Business Administration was lower than $349 billion as the lenders only received approximately $6 billion.

According to a report, the top five sectors which received the funds were construction services, manufacturing, health, accommodation, and food services. This took up almost 60 percent of the entire fund.