Mark Cuban continued his public effort to assist companies navigate the uneven monetary waters of the coronavirus pandemic, and this time he’s centered on serving to minority-owned and women-owned companies who missed out on their share of the Paycheck Safety Program (PPP).
In a pair of tweets on Wednesday, Cuban supplied help to the assistance these companies which are eligible, however haven’t been authorised for a PPP loan.
Cuban’s supply adopted his feedback a couple of days earlier by which he addressed the shortcomings of the PPP program and supplied his personal options, together with $1,000 stimulus checks to households each two weeks for 2 months to be able to assist enhance client spending.
Cuban’s latest supply was made because the financial system continues to reel from the affect of the coronavirus. A latest report by Fb and the Small Enterprise Roundtable discovered that one-third of U.S. small companies have ceased working over the previous a number of months, and a further 11% of enterprise homeowners count on to fail within the subsequent three months if the troublesome coronavirus-induced situations proceed. Consequently, eligible corporations who’ve but to obtain PPP funding may be on their final legs earlier than becoming a member of the fallout from the deepest financial disaster for the reason that Nice Despair.
Minority-owned and women-owned enterprise are notably in danger. A latest research sponsored by racial justice and equal alternative organizations Colour of Change and UnidosUS , discovered that solely 12 p.c of Black and Latinx enterprise homeowners who utilized for support from the Small Enterprise Administration obtained the total quantity of the funds they requested, and 26 p.c report that they had obtained solely a fraction of what that they had requested. These numbers distinction with different knowledge reported by the U.S. Census Bureau that nearly 38% of those that utilized for PPP funds obtained them. The Colour of Change/UnidosUS survey, carried out by World Technique Group, additionally discovered that nearly half of the minority-owned enterprise that have been surveyed anticipated needing to completely shut within the subsequent six months.
A separate survey launched in April by Builders + Backers and Her Nook equally reported that nearly three million girls owned companies have been unable to obtain PPP funds, and once they did ask for funds they obtained lower than the nationwide averages.
Cuban’s supply additionally comes at a time the financial system continues to reel from the monetary affect of the prolonged nationwide shutdown. With some stories displaying as a lot as $1.three trillion of employee earnings being washed away of the previous few months, and unemployment climbing in direction of 20%, America’s workforce is struggling a historic contraction. Moreover, a staggering variety of enterprise have been closing, with the Nationwide Bureau of Financial Analysis reporting that over 100,000 U.S. companies have folded for the reason that begin of the pandemic.
With the following federal stimulus invoice stalled in Congress, and Fed Chief Jerome Powell testifying to Congress that Federal Reserve “may must do extra, and Congress may as effectively,” if the U.S. financial system is to navigate by the worst financial system for the reason that Nice Despair, it’s more and more clear that is an all-hands-on-deck second to assist struggling companies keep afloat.
It seems that for now, Mark Cuban is ready on doing his half. As he tweeted on Wednesday – “Let’s get that money.”