The Paycheck Protection Program (PPP), a federal economic stimulus program, is meant to help small businesses during the COVID-19 pandemic, but some Missoula business owners are frustrated with the program.
Small businesses with fewer than 500 employees are eligible for the PPP through the Coronavirus Aid, Relief and Economic Security (CARES) Act, which will forgive the PPP loan if employers use it to pay workers, according to the Missoulian. But many business owners said they can't compete with the $600 weekly check the federal government is giving out as unemployment insurance.
“We got the PPP loan, but it’s wrought with questions and there doesn’t seem to be a definitive source to answer those questions,” Bruce Micklus, owner of Rockin Rudy’s, a retail store, told the Missoulian. “I’ve heard it’s either the greatest thing since sliced bread or it’s a poison pill.”
Micklus told the Missoulian his main concern is that he has to spend the money in eight weeks and 75% has to be used on payroll for the loan to be forgiven. He hasn't been given much guidance on the program and is worried he won't use the money right.
“You’ve got till the 30th of June to rehire everyone,” he told the Missoulian. “We figured out how many full-time equivalents we have, and they all have to be on the payroll on June 30th or you don’t qualify (for loan forgiveness). I don’t mind paying people their salaries and not even having them be here if eventually in 30 days they’re going to be here. But if we’re not going to be open then there’s not work for 31 full-time employees.”
Jason McMackin, owner of the Burns St. Bistro restaurant, said the PPP program doesn't help him, because restaurants can't open and if they do, it's with a limited capacity, according to the Missoulian.
"The PPP is great for places where everyone can work from home, but it's terrible for a restaurant or a place that can't open or can only open on limited capacity," he told the paper. "So they need to get rid of the eight weeks stipulation or start the clock on payments like three weeks after you open."
McMackin said he might be able to hire everyone back to deep clean the restaurant while they are closed, but employees are receiving unemployment benefits right now and may not want to do that.
But Shelly Wilson, owner of a nail salon, said the PPP doesn't really help one-person businesses, according to the Missoulian.
"I have never had to take anything from anybody," she told the Missoulian. "I'm 56 years old and I've been working since I was 15 and I'm starting to freak out because I don't know how long this is going to last."
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