Question

5. Why are businesses unable to hire workers even though the PPP was designed for small businesses to employ workers?

Answer 1

Answer - The businesses are unable to hire workers even after formulation of PPP for the small business mainly because of the lack if flexibility in the program. The policy has the law of paying the employess with their payments even after the business remain closed. In this case there will be no revenues earned. The small business will not be able to pay their employees in the absence of revenue which is the drawback of this program. The business can use this loan only for the specific purpose. There is extreme lack of flexibility hence it has not been as much beneficial for the small businesses.