PRESENTING: What to do if you missed out on federal small business loans, now that funding has dried up
Less than two weeks after launch, all of the $349 billion allocated to small businesses in the CARES Act has been committed, meaning banks no longer have the backing of the US Treasury to provide forgiveable loans to small businesses to cover payroll costs.
Until Congress approves another relief bill, lending could come to a grinding halt.
However, a $600 billion Main Street Lending Program from the Federal Reserve offers another path for entrepreneurs who need $1 million or more to stay afloat. Though these loans lack the path to forgiveness that made the Paycheck Protection Program so appealing, the Fed is backing low-cost financing that could help some businesses make it through the worst of the pandemic.
Business Insider spoke with Bob Prosen, a small-business adviser, about which steps entrepreneurs should take if they plan to stay in business.