Shane Shifflett at the Wall Street Journal recently did some in depth analysis of businesses who received the paycheck stimulus protection aid. The results, while sobering, are not surprising. The Wall Street Journal was able to analyze bankruptcy findings for the 300 companies that “received as much as half a billion dollars in pandemic-related government loans.”
Larger companies accounted for half the loan amounts paid in the $525,000,000,000 in federal guarantees. However, 86.5% of the recipients of the aid program were smaller businesses. Small Businesses often do not go to court when they face business problems, they just liquidate whatever assets they have and close the business.
This article shows the staggering cost the continued pandemic has on businesses in every industry and location, but the hardest hit states were California, Texas, Florida, and New York.
For small businesses, the continued pandemic means that there will be increased uncertainty, decreased income, while costs stay the same. Without some immediate relief and long-term economic growth and recovery, many more businesses will likely face solvency issues in 2021.