Battered small businesses say they have little hope for second round of PPP funds

Elaina Athans Image
Thursday, April 23, 2020
Battered small businesses have little hope for second round of PPP funds
Battered small businesses have little hope for second round of PPP funds.

RALEIGH, N.C. (WTVD) -- Some small business owners are feeling battered from the last frenetic fight for federal funding from the Paycheck Protection Program. They are again putting their name in the hat since the bucket has been replenished, but small business owners aren't incredibly hopeful they'll get any money.

"No real anticipation only because what we saw happened in the first round, so I don't really want to hold my breath on anything else coming through on the second round," said Reuben's Deli Owner Glen Jones.

He has certainly had to pivot to keep his business model. Jones is now offering free delivery and is doing neighborhood food drop-offs.

"We've had to be a little bit scrappy in what we do," he said.

He is doing it with a bare-bones staff. He laid off 14 employees.

RELATED: $1M in grant money created for Raleigh small businesses dealing with COVID-19 revenue loss

Jones had hoped the PPP would help him hire everyone back the first time; he does not have the same zeal now.

"We certainly could use it, and we appreciate the support," Jones said.

Cheryl Fraser, who owns Galathea Boutique in Seaboard Station, feels the same way.

Her sales have dropped by 90 percent.

"It's kind of sad," she said. "If I don't get some type of help loan-wise for small business, I'm not sure we'll be able to continue."

It has been a couple of days since Congress pumped additional funds into the program.

This after it came to light that some not-so-small businesses received money the first time.

Restaurant chains Shake Shack, Ruth's Chris, and Potbelly's got money, though Shake Shack said it would return the $10 million it received.

An Associated Press investigation found 94 publicly traded companies benefited from PPP and absorbed $365 billion in loans.

Jones, meanwhile, is just looking to bring his people back to work.

"It's the small businesses that are really suffering and it's the small businesses that will suffer the most. You're going to see a lot of small businesses go out of business and not open up again just because they weren't able to withstand this time period," he said.

Small businesses can apply through their banks.