No one has asked for local government loans to recover or expand Longview’s businesses since a federal game doubled the pool to over $ 1 million about 10 months ago.
Cowlitz-Wahkiakum Council of Governments executive director Bill Fashing said his organization and the town of Longview received about $ 540,000 from the federal government in early 2021 to double the low-interest loans available for Longview businesses that cannot borrow money from a traditional lender. .
The problem is, no one is applying. Fashing said business loans were on the decline nationwide during the pandemic, not just here at home.
Longview restaurants facing employee shortages amid the pandemic are offering more money in hourly wages or overtime to keep doors open and …
âMost of the people we talk to don’t want to take out a loan during a pandemic,â he said.
The economy is rebounding
Commercial borrowers have plummeted during the pandemic. According to S&P Global, U.S. banks reported a 4% drop in business loans in Q2 2020, excluding loans from the Paycheck Protection Program, a potentially repayable federal loan that allows businesses to retain employees. against a backdrop of declining sales during the pandemic. Now S&P Global reports that the economy is rebounding. In May, the financial analysis firm reported that national bankruptcy rates had been declining since 2020 and that businesses were less likely to default on their loans.
Retail sales are also on the rise. According to the U.S. Census, in April 2020, just after state closures began in March, monthly retail sales in Washington state fell about 26% from the previous year. In April 2021, sales were around 70% higher than in April 2020.