Small businesses suffer after banks pay out PPP loans to big businesses

The second round of stimulus funding is expected to be approved by the US House by Thursday and the key feature of the bipartisan funding bill is the Payroll Protection Program (PPE).

It’s designed to give small businesses forgivable loans to off set pay toll costs during the coronavirus pandemic.

There were some issues as the first round of funding was exhausted in just 2 weeks.

We've all heard about larger businesses like Shake Shake getting PPP funding meant for small businesses. The company did give back the money and Arizona Senator Martha McSally wants other larger businesses to follow suit.

So how do those small businesses get funding with all of this competition?

The doors are shut to at the National Comedy Theatre (NCT) on Main Street in Mesa, a business designed on crowds and laughter.

"Are those people going to feel safe, are they going to feel comfortable, are they going to want to get out and laugh or are they going to want to stay home," asked Krissy Lenz with NCT.

To get by, Lenz says they’ve moved online, streaming improv comedy shows on Zoom and started applying for any financial assistance.

They didn’t get funding from the PPP last time, like 19,000 small businesses in Arizona did, but she’s hoping the next round she will.

"In spite of all of our efforts, there’s no other way for us to have income or have support," Lenz explained.

"We’re concerned about the very small businesses, the one person businesses, the mom and pop shops," Senator Martha McSally said.

Arizona U.S. Senator Martha McSally said Wednesday that money is really meant for businesses like NCT, not big businesses.

"I put a message out to the big banks yesterday, this money is not yours, it’s the American taxpayers and we need to make sure that the very small businesses are not out to the side here, they’re given the same level of attention, priority and money," McSally said.

The House is expected to vote on the new federal money Thursday.

Funding for PPP could be available by Monday or even Friday.

For more information about the PPP, visit https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp