U.S. Small Businesses Wait Impatiently for Government Aid That Could Be Slow to Come

As soon as New York officials began detailing their response to the coronavirus, Matt Preis knew his staff might be in trouble.

His Brooklyn-based pet company Chuck & Buddha’s cares for animals while their owners work or travel. But as his customers suddenly found themselves at home under government orders, business dried up.

“I have never seen anything like this in my lifetime,” said Preis, who employs three full-time workers and several others part-time. “Even the downturn in 2008 didn’t affect independent dog walkers too much, except there were a lot more of us all of a sudden.”

Like many other small-business owners who spoke to Reuters, Preis is hoping new government programs might keep him afloat.

But the application process can be confusing, with local, state and federal programs touting initiatives that do not immediately offer much-needed access to cash. And while the federal government wants to disperse funds quickly, logistical hurdles – including a lack of staff to vet mountains of applications – will be hard to overcome.

Over the past few days, Preis has contacted relevant agencies, his bank and financial advisers. As of Tuesday afternoon, he had been given just two hyperlinks and was working on applications.

“I don’t know what the future holds for many small companies, which include our mom-and-pop dog-walking operation,” Preis said.

Seeking to help millions of business owners who have seen their operations either shut down or dramatically curtailed by the coronavirus pandemic, Congress last week passed a $2 trillion stimulus package that includes $349 billion aimed at small firms through the Payroll Protection Program.

It covers eight weeks of payroll and some other operating expenses through a forgivable loan of up to $10 million for businesses that have roughly 500 or fewer employees.

The program is retroactive from Feb. 15 so employers who laid off workers can re-hire them through June 30, according to guidance provided by the Treasury Department on Tuesday. It appears to offer broad coverage, including for self-employed individuals, independent contractors, non-profits, military-veteran organizations and tribal groups.