Businesses Support PPP Loan Changes, But With Concerns
TORRANCE, Calif .– President Joe Biden implemented some of its new changes to the federal payment protection program Wednesday. The president’s goal is to directly target smaller, minority-owned businesses to ensure they get the help they need during the pandemic.
In Torrance, Calif., Minal Mondkar is the CEO of Aura seats, a designer-manufacturer of yoga-based office chairs. Mondkar has tried to increase its customer list after suffering a decline due to the pandemic.
“So we started the year with a positive outlook for expanding the business and this is March where we had all of these purchase orders,” Mondkar said. “And suddenly, everything got stuck and the customers took over all the purchase orders; everything is canceled.
Even with two children, Mondkar chose to reduce her salary and that of her husband in order to continue paying her four employees in the midst of the crisis.
“Employees are the backbone of any business. For us it’s a family, ”Mondkar said.
Under the Trump administration, Mondkar received two rounds of PPP loans. Now, Biden’s changes The program for a third round includes a 14-day period during which only companies with fewer than 20 employees can apply from February 24. , or legal residents who are not citizens, to apply. It also includes a new way to calculate more financial support for self-employed workers, sole proprietors, and independent contractors. With Biden’s changes to the program, Mondkar said she felt like this time around she didn’t have to compete with big companies for funding.
“We are very grateful to hear this. It kind of gives us a beacon that, you know, there’s someone out there thinking of us, ”Mondkar said. “It’s music to my ears.”
But there is still great concern for Mondkar. She said that while she is grateful for federal help, she doesn’t look forward to the day in about a year or so when she will have to start paying back thousands of dollars in loans, especially if the economy has failed. not rebounded during the year.
“All of these business owners are going to suffer,” Mondkar said.
Mondkar said PPP loans are a welcome short-term relief, but if there aren’t more grants, small businesses like his may have to shut down anyway.
Another problem that Mondkar pointed out is that this new round of PPP loans is not helping the rent. She said that despite the rent moratorium in California, she knows landlords can struggle too, so she always pays her rent on time. She begged the administration to add a provision to spend the P3 on rent or for Congress to pass a bill to help with rent costs.
Despite its situation, Mondkar also helps other local businesses as much as possible. She sits on the board of directors of the Chamber of Commerce in the Torrance area.
She is also co-chair of “Elevate! A program for small businesses“where each month they bring in subject matter experts on a topic that would benefit small business owners. Next month they expect the Los Angeles Small Business Administration and several banks to present different options available to struggling businesses in the middle. of the pandemic.