How could we have done better?
Last March, as we began our fight against the Covid-19 pandemic, we as a country became immersed in a dilemma regarding prioritization. Our regulations revolved almost entirely around the protecting of health, and avoidance of spread. Yet within that first month, a survey conducted by the PNAS (Proceedings of the National Academy of Sciences of the United States of America) reported that the average business had $10,000 worth of monthly expenses, and only two weeks of income available to pay them. Furthermore, only ¾ of respondents had enough money to last them 2 months, or even less.[1]
Needless to say, something needed to be done.
Along came the Paycheck Protection Program (PPP) through the CARES act, which provided the opportunity for eligible small businesses to take out loans valuing up to 10 million dollars. This should have been a positive advancement for many store owners, yet “many businesses were reluctant to apply for funding through the CARES Act because of concerns about administrative complexity…, eligibility, and bureaucratic hassles.”[1] It should also be noted that in addition to applying for the loan, one had to also apply for forgiveness of that loan in order to receive aid and not a deeper, darker hole of debt.
When discussing this loan with my Father, the owner of my family’s business, his most pressing critique seemed to be the time consuming nature of the PPP. As someone with a collegiate background in financing, this intricate application process was manageable for my father; yet consider those who were not quite as equipped. Those who, as previously mentioned, were uncertain if they’d even be granted the loan and still had to spend valuable time completing an appeal for it. Consider business owners who were illiterate and not versed in legal documentation, or even those who remain intimidated by interaction with our government. The bottom line is that this loan was not equitable; it was not equally accessible to all. This truth could have been remedied with a less time-intensive, and more user-friendly application. The government could have also provided more aid in completing the application to resolve potential administrative complexity. Lastly, this loan could have been approved before April 24th of 2020 — one whole month after those 3/4th of survey respondents reported not having enough money to last them through the next month.
These problems, however, lie in the past — to dwell on them helps no one.
Instead, our country must remain present, for there are plenty obstacles to address in our ‘now’.
