In late March, Congress approved the Coronavirus Aid, Relief, and Economic Security Act, known as the CARES Act, setting aside $376 billion in funding for American workers and small businesses.
Eligible business owners could apply for a $10,000 advance through the Economic Injury Disaster Loan, or EIDL, program or obtain forgivable loans through the Paycheck Protection Program, known as PPP.
Banks approved by the U.S. Small Business Administration to issue loans gave large companies funding, leaving little for smaller enterprises.
Only 5% of small businesses that had applied for an economic injury disaster loan received money; just 25% got cash under PPP, according to a recent National Small Business Association survey.
Funding Circle, an online lender that specializes in loans for small businesses, said tens of thousands of those businesses won’t have access to funding before the money runs out.
