Weekly COVID-19 News Update

Paycheck Protection Program Rollout

The $349 billion Small Business Administration fund to bail out small businesses, known as the Paycheck Protection Program, opened on Friday April 3 with some difficulty. The funds are being distributed through banks, with the intention that these banks already have relationships with small businesses. However, restrictions on lending, software hiccups and confusion has thwarted loans from being made, to the frustration of many small businesses, reports the New York Times. 

"New Economy" Workers Not Eligible for SBA Loans

Gig workers, 1099 workers, and startup firms may not be able to access the Payment Protection Program loans from SBA. While there is still some debate, it is likely that companies will not be able to count contractors in their calculations for the PPP program. Firms that are heavily backed by venture capital may have a harder time applying for PPP because they may be seen as a smaller fraction of a whole company owned by the VC firm, according to the Wall Street Journal. 

Public Health Interventions Make the Economy Stronger

Three researchers - two from the Federal Reserve, and one from MIT - have completed a new study that shows that cities which took more precaution in the Spanish Flu epidemic were able to recover more completely. These findings are related to our current situation, with the authors encouraging responsible social distancing and other preventative tactics. 

Face Masks Recommended

On Friday, April 3, President Trump shared the recommendation of the Center for Disease Control that Americans wear face masks when in public. Facemasks can be made from a bandana, t-shirt, or purchased from vendors online. Medical facemasks are not recommended, since these need to be conserved for medical workers.