The Trump Administration last week approved an additional $320 billion in payroll protection program (PPP) funds after the first round – nearly $350 billion – ran out earlier this month in less than two weeks.
Intended to blunt the economic impact from the spread of the COVID-19 coronavirus, the funds provided financial support to certain employers who haven’t turned employees out through furloughs or layoffs.
The Coronavirus Aid, Relief and Economic Security (CARES) Act has been a sight for sore eyes for carriers battered for nearly two months by declining freight volumes and spiraling rates. Nearly 70% of fleets responding to a weekly CCJ survey that measures the coronavirus’ impact on motor carriers have applied for CARES Act monies. The majority have enjoyed some success with 39% of all respondents saying they had been approved for a PPP loan versus only 5% that were denied.
“We were approved but there were not any funds left,” wrote a for-hire carrier with fewer than 25 trucks. A for-hire carrier with up to 50 trucks based in the Pacific Northwest noted they had been approved but ultimately returned the funds.
Another 25% didn’t know their fate as of late last week, but had applied for PPP relief. Many of those carriers found the process clunky and hampered by banks that couldn’t handle the tidal wave of applications – drags on the process that couldn’t shuffle their requests to the front of the line before the money ran out.
“Even though SBA states we can include 1099s, our bank came back and said 1099s were not allowed,” penned a carrier respondent. “Due to the nature of our business, most of those who work with us are independent contractors. Basically, we’ve been screwed over by our bank.”
“No money left when my bank processed the application,” added another.
