Strome Business Minute With Dr. Jeff Tanner

The Coronavirus Aid, Relief, and Economic Security Act, dubbed the CARES Act, is already pumping millions of dollars into businesses through the Paycheck Protection Program, or P P P. Bankers report processing huge volumes of loan applications. One banker reported that she is working about eighteen hours a day processing loans. Average loan sizes are about two hundred and fifty thousand dollars. When a company is given a loan, three-fourths of the money must be used to provide paychecks. This requirement is intended to provide relief to companies who would otherwise have to lay off employees or lower pay but it only benefits companies who can continue to operate. Loan restrictions actually hurt companies like hotels who have to close, who’s employees are better off claiming unemployment because they get a CARES Act bonus. To learn more, visit odu.edu/business. This Strome Business Minute is presented by the Strome College of Business at Old Dominion University.