# As Small Business Loan Program Comes to an End, Debate Heats Up: Business Casual

Published 2020-06-23 · Updated 2026-06-09 · Healthcare on MarketScale
Canonical: https://www.marketscale.com/industries/healthcare/as-small-business-loan-program-comes-to-an-end-debate-heats-up-business-casual

> Powered by RedCircle After delivering more than half a trillion dollars to millions of employers, the Small Business Administration is set to stop approving government-backed loans as of July 1st. However, in a June 12th report, the Fed told Congress that a multiplicity of data reveals “an alarming picture of small business health during the…

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After delivering more than half a trillion dollars to millions of employers, the Small Business Administration is set to stop approving government-backed loans as of July 1st. However, in a June 12th report, the Fed told Congress that a multiplicity of data reveals “an alarming picture of small business health during the COVID-19 crisis.” In fact, a National Bureau of Economic Research analysis reports that between February and April, the number of working business owners, including small businesses, fell by 22%, the largest drop on record, with restaurants, hotels, construction and transportation companies taking the brunt of financial misfortune during the pandemic.

And according to Holly Wade, Director of Research and Policy Analysis for the National Federation of Independent Business, which represents small businesses, “We’re still in a crisis. Until we have better therapies and a vaccine, we’re not going to see a full recovery by any stretch.”

On this snippet, MarketScale’s [Business Casual](https://marketscale.com/industries/podcast-network/business-casual/) co-hosts [Taylor Bagley](https://marketscale.com/industries/contributors/taylor-bagley/), [Tyler Kern](https://marketscale.com/industries/contributors/tyler-kern/) and [Daniel Litwin](https://marketscale.com/industries/contributors/daniel-litwin/) discuss:

How the demands for more support for small businesses are prompting a debate between lawmakers

How the 25/75 rule only allowed for 25% of the funds received to be applied toward, rent, mortgages, utilities and other operating expenses in order for businesses to be eligible for loan forgiveness

How onerous restrictions and minority employers without banking relationships left $130 billion unspent in the Payment Protection Program, with 55% of small businesses opting not to apply for PPP loans and 71% not applying for Economic Injury Disaster loans

How large banks deemed that loaning to businesses with fewer than 50 employees too labor intensive

How small community banks were ill equipped to handle the deluge of applications and process large amounts of data in short timeframes

How new restrictions will inhibit companies with ample resources, like Shake Shack, Ruth’s Chris and more, to benefit from future business aid

How the smallest businesses will need more help as the economy reopens amid “alarming circumstances”

Bringing thought leadership to your day, MarketScale’s [Business Casual](https://marketscale.com/industries/podcast-network/business-casual/) keeps you current with the hottest topics, the newest trends and the latest technology shaping business and our world today. And for the latest thought leadership, news and event coverage across B2B, be sure to check out our [industry pages](https://marketscale.com/industries/).

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