Small Business Administration loan program is strapped for cash and more business news
The SBA aid program is strapped for cash
The government’s main COVID-19 relief program for small businesses is strapped for cash.
The Small Business Administration said Wednesday the paycheck protection program has run out. As of Sunday, the PPP had granted nearly 10.8 million loans worth more than $ 780 billion since April last year.
The program, which was cash-strapped and reimbursed by Congress twice previously, was due to expire on May 31. It is not yet known whether lawmakers will approve another round of funding.
The SBA said in a statement that approved loan applications will still be funded.
Biden touts humanitarian aid for restaurants
President Joe Biden hosted a Cinco de Mayo taco and enchilada on Wednesday to mark his administration’s $ 28.6 billion program to help restaurants that have lost business to the coronavirus pandemic.
Biden went to Taqueria Las Gemelas in Washington on Wednesday and ordered lunch. The restaurant is partly owned by Mexican immigrants and has benefited from a pilot version of the restaurant’s relief program.
Biden says the restaurant industry has been “severely affected” by the pandemic. Aid to restaurants is part of the administration’s $ 1.9 trillion coronavirus relief program. The White House says 186,200 restaurants, bars and other eligible businesses applied for the program in its first two days of accepting applications.
Office Depot parent is going to separate
ODP Corp., the operator of Office Depot, intends to split the company into a pair of independent, publicly traded companies, paving the way for a potential sale of its retail business.
The move, announced on Wednesday, comes after rival Staples spent the start of this year trying to take over the company for $ 2.1 billion, an offer the ODP rejected in January.
But by creating two separate companies, ODP is now able to offload its retail business, which has been shrinking for years. After the Staples deal failed, USR Parent, the company that controls Staples, said it would explore the possibility of buying, among other things, the consumer business of Office Depot.
In a conference call with analysts on Wednesday, ODP executive vice president David Bleisch said the company had not discussed the split with Staples.
Boeing crash victims detonate FAA regulators
Family members who lost loved ones in the second fatal Boeing 737 Max crash met with Transportation Department officials on Wednesday to renew their push to oust senior federal aviation officials, who ‘they accuse of being too comfortable with Boeing.
The families demanded that the Biden administration replace Federal Aviation Administration chief Stephen Dickson, the FAA’s top safety official Ali Bahrami and two others.
Several hundred relatives and friends of passengers who died in the 2019 Ethiopian Airlines Max crash have signed a letter to President Joe Biden and Transportation Secretary Pete Buttigieg demanding the changes.
“The FAA has been, and continues to be, more interested in protecting Boeing and the aviation industry than in safety,” they wrote.
– Compiled by Dave Flessner