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TECHNOLOGY Tuesday 19 May 2020
SBA leaves businesses still hoping for more leeway on loans

By JOYCE M. ROSENBERG coronavirus relief pack-
AP Business Writer age, has given out more
NEW YORK (AP) — Small than 4.4 million loans worth
businesses hoping for more $544 billion as of late Fri-
leeway in using coronavirus day. The loans have been
loan money were disap- given out in two rounds;
pointed as the government in the first, the average
released instructions for loan was $206,000 and in
seeking forgiveness for the the second, it is $70,622 as
loans. more money has gone to
Forms the Small Business the smallest applicants.
Administration released Loan forgiveness was a
late Friday didn't address key factor in many own-
two concerns shared by ers seeking the loans. They
many owners about the don't want to have a debt
$659 billion Paycheck Pro- burden, especially if their
tection Program. Accord- revenue is down, leaving
ing to the instructions, loans them less money for loan
can still be forgiven in full payments.q
only if the money is spent
within eight weeks of re-
ceiving it. And businesses
must use at least 75% of it
for workers' pay, with the In this April 23, 2020 file photo, a sign is posted on a closed store in North Miami, Fla.
remaining amount limited Associated Press
to rent, mortgage interest ibility on when the eight- ers' pay when the money owners, for example, say
and utility expenses. week period should start or runs out. they need to use some of
Many small businesses say need to have the covered "We brought people back the money to buy food
the eight-week period is period extended to more to full pay, but I warned and other items to be able
too restrictive. Those who than eight weeks," the them that I can't guaran- to reopen. While techni-
laid off workers are afraid American Institute of Certi- tee that we will be able cally they can do that, they
they'll have to let them fied Public Accountants, a to keep everyone at full could not get forgiveness
go again if business hasn't trade group, said in a state- hours," says Leslie Saul, on the money spent for
returned to pre-virus out- ment. owner of an architecture unapproved items. Some
break levels at the end of One option owners have and design firm that bears owners, fearing they won't
the eight weeks, a situation asked for is to have the her name in Cambridge, get forgiveness, have said
likely for many restaurants eight-week period start Massachusetts. they're considering not us-
whose revenue is down when laid-off staffers are Many owners are also un- ing the money.
due to social distancing re- rehired. happy about the restric- The Paycheck Protec-
quirements. Other owners are worried tions on how they can use tion Program, part of the
"Small businesses need flex- about having to cut staff- the money. Restaurant government's trillion-dollar

China warns U.S. of ‘all necessary measures’ over

Huawei rules

BEIJING (AP) — China’s in the world’s semicon-
commerce ministry says ductor plants is mostly
it will take “all necessary U.S.-made, so the new rule
measures” in response to affects foreign producers
new U.S. restrictions on that sell to Huawei and
Chinese tech giant Hua- affiliates including HiSili-
wei’s ability to use Ameri- con, which mainly designs
can technology, calling chipsets used in smart-
the measures an abuse of phones and wireless base
state power and a viola- stations. The U.S. Com-
tion of market principles. merce Department said
An unidentified spokesper- foreign foundries would be
son quoted Sunday in a granted a 120-day grace
statement on the ministry’s period for chips already in
website said the regula- production.
tions also threatened the In this March 8, 2019, file photo, A logo of Huawei retail shop U.S. Commerce Secretary
security of the “global in- is seen through a handrail inside a commercial office building Wilbur Ross said Friday that
in Beijing.
dustrial and supply chain.” Associated Press Washington wants to pre-
“The U.S. uses state power, vent Huawei from evading
under the so-called ex- cific enterprises of other safeguard the legitimate sanctions imposed ear-
cuse of national security, countries,” the statement rights and interests of Chi- lier on its use of American
and abuses export control said. nese enterprises,” it said. technology to design and
measures to continuously China will “take all neces- Chip design and manu- produce semiconductors
oppress and contain spe- sary measures to resolutely facturing equipment used abroad. q