The Small Business Administration was supposed to give guidance to lenders to prioritize underserved small businesses, but the agency’s inspector general found it did not.
. And it’s impossible to know how many women and minority-owned businesses received loans from the program, the SBA inspector general wrote, because the agency did not instruct lenders to collect demographic data.
Even mom and pop stores who’ve received PPP loans are struggling with the SBA’s requirements. Several small business owners told BuzzFeed News they haven’t gotten enough guidance from the SBA and are confused about the requirements for loan repayment and forgiveness. The inspector general also reported that the SBA added a requirement stipulating that 75% of PPP loans must go to payroll and 25% to rent and utilities in order to be eligible for forgiveness, but that’s problematic for small businesses in larger cities where rent can come close to or surpass their payroll amount.Daniella Stromberg wears a mask outside her small business, d’mai Urban Spa in Brooklyn.
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