MajorsDec 27, 2024
Buccellati to Expand Workforce by 500 Employees Over Next Three YearsThe Richemont-owned company is investing in its jewelry production and watchmaking workshops.
Policies & IssuesApr 17, 2020
The Paycheck Protection Program Is Out of Money, For Now
An additional $250 billion is on the table, but lawmakers have yet to come to an agreement.
The Paycheck Protection Program, which offers forgivable loans to small businesses to cover payroll costs, has run out of money.
Washington—The Small Business Administration’s Paycheck Protection Program has run out of money, halting the acceptance of new applications.
The SBA announced the development on its website Thursday, noting it is “unable to accept new applications for the Paycheck Protection Program based on available appropriations funding. Similarly, we are unable to enroll new PPP lenders at this time.”
The program, approved by Congress and signed into law by President Donald Trump last month, is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which will provide $2 trillion in aid to keep businesses afloat during the coronavirus pandemic.
The PPP has run through the $350 billion in available funding after applications poured in from small business owners struggling amid the shutdown.
The program offers forgivable loans to cover up to 250 percent of payroll for small businesses with 500 or fewer employees.
The program’s rollout was rocky, fraught with administrative and technical issues for both banks and small businesses, from system crashes to a lack of direction from the federal government.
As frustrations and the application pile grew higher, it was expected that the well would run dry.
The SBA said Wednesday it was reaching capacity with more than 1.3 million loans having been approved for more than $296 billion.
By Wednesday evening, more than $315 billion in loans had been approved, a source told CNBC.
Additional funding may be on the table, but Democratic and Republican lawmakers are not yet in agreement as to what the new funding package will look like.
Last week, Senate Democrats blocked a Republican attempt to put another $250 billion into the loan program, wanting the measure to include more funding for hospitals and states.
In a joint statement issued Wednesday, Treasury Secretary Steven Mnuchin and SBA Administrator Jovita Carranza said: “We urge Congress to appropriate additional funds for the Paycheck Protection Program—a critical and overwhelmingly bipartisan program—at which point we will once again be able to process loan applications, issue loan numbers, and protect millions more paychecks."
Staff for House Speaker Nancy Pelosi (D-Calif.) and Senate Minority Leader Chuck Schumer (D-N.Y.) were expected to speak with Mnuchin and his department Thursday, several sources told Politico.
With the program on hold and the funding measures up in the air, small business owners will have to wait to see how the situation unfolds.
During the waiting period, small businesses should take the time to make sure their applications are completed and ready to
go if the program reopens, advised Meredith Wood, vice president at Fundera, a company that connects small business owners with loans.
“Work with an institution that is still accepting applications during this time and do your research to ensure you’re fully packaging your application with no errors,” Wood wrote in an email to National Jeweler.
“I would say around 75-90% of the applications we receive need some form of correction—a missing piece of documentation, the wrong documentation, an incorrect payroll calculation, etc.,” said Fundera founder Jared Hecht in a tweet earlier this month.
In a Twitter thread, Hecht also outlined some of the problems banks and applicants have been facing from “antiquated software” that goes down for hours at a time to issues reaching customer service.
He noted some banks have been prioritizing their own customers when it comes to processing the loans.
“There’s unlimited demand for these loans, so banks want to provide preference to their own customers,” tweeted Hecht.
In a Jewelers of America-led webinar last week, Dentons partner Randy Nuckolls echoed that sentiment, noting if retailers use their regular banks, that may speed up the process.
In a message on its website, Fundera said it has a “high level of confidence” Congress will provide additional funding for PPP and is still accepting and packaging applications to send to its bank partners if the program reopens.
In a tweet Friday morning, Jewelers of America shared a link to a form jewelers can fill out and send to Congress, urging legislators to provide more relief for businesses.
The letter suggests appropriating an additional $600 billion for the PPP and providing additional funding for the Exchange Stabilization Fund, a program used during the coronavirus crisis to provide funding for mid-size to large businesses, which JA said may soon run out of money as well.
“The U.S. Treasury is using its Exchange Stabilization Fund during the coronavirus crisis to backstop new Federal Reserve lending programs aimed at stabilizing credit and money markets,” explained The Brookings Institution, a nonprofit public policy organization based in Washington, DC.
The JA letter also calls for an extension to the PPP, stating: “It is clear that extended public health restrictions and a slow return to normal work will result in small businesses having limited customers and revenue far beyond June 30.”
The CARES Act prohibits the use of relief funds for non-payroll expenses, including rent and utilities.
The letter asks for a change to this rule, as these expenses represent a “significant portion” of a jeweler’s financial obligations.
For more information about the letter, visit JA’s website.
“Work with an institution that is still accepting applications during this time and do your research to ensure you’re fully packaging your application with no errors,” Wood wrote in an email to National Jeweler.
“I would say around 75-90% of the applications we receive need some form of correction—a missing piece of documentation, the wrong documentation, an incorrect payroll calculation, etc.,” said Fundera founder Jared Hecht in a tweet earlier this month.
In a Twitter thread, Hecht also outlined some of the problems banks and applicants have been facing from “antiquated software” that goes down for hours at a time to issues reaching customer service.
He noted some banks have been prioritizing their own customers when it comes to processing the loans.
“There’s unlimited demand for these loans, so banks want to provide preference to their own customers,” tweeted Hecht.
In a Jewelers of America-led webinar last week, Dentons partner Randy Nuckolls echoed that sentiment, noting if retailers use their regular banks, that may speed up the process.
In a message on its website, Fundera said it has a “high level of confidence” Congress will provide additional funding for PPP and is still accepting and packaging applications to send to its bank partners if the program reopens.
In a tweet Friday morning, Jewelers of America shared a link to a form jewelers can fill out and send to Congress, urging legislators to provide more relief for businesses.
The letter suggests appropriating an additional $600 billion for the PPP and providing additional funding for the Exchange Stabilization Fund, a program used during the coronavirus crisis to provide funding for mid-size to large businesses, which JA said may soon run out of money as well.
“The U.S. Treasury is using its Exchange Stabilization Fund during the coronavirus crisis to backstop new Federal Reserve lending programs aimed at stabilizing credit and money markets,” explained The Brookings Institution, a nonprofit public policy organization based in Washington, DC.
The JA letter also calls for an extension to the PPP, stating: “It is clear that extended public health restrictions and a slow return to normal work will result in small businesses having limited customers and revenue far beyond June 30.”
The CARES Act prohibits the use of relief funds for non-payroll expenses, including rent and utilities.
The letter asks for a change to this rule, as these expenses represent a “significant portion” of a jeweler’s financial obligations.
For more information about the letter, visit JA’s website.
More on Policies & Issues
The Latest
SourcingDec 27, 2024
IDCA Announces 2025 Board MembersManoj Bhandari, a principal of RMC Gems Inc., is the new president of the Indian Diamond & Colorstone Association.
Events & AwardsDec 27, 2024
18 Designers Graduate from WJA’s Jewelry Loupe ProjectThe designers participated in a six-month business development and mentorship program to develop and launch their jewelry collections.
Brought to you by
A Diamond Is Forever Celebrates "Forever Present" Holiday CampaignA Diamond is Forever hosted a holiday celebration in honor of their new marketing campaign, ‘Forever Present.’
MajorsDec 24, 2024
Nordstrom Family, Partner to Take Retailer Private in $6B DealMembers of the founding family have partnered with Mexican retail company El Puerto de Liverpool to acquire Nordstrom.
Weekly QuizDec 27, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
MajorsDec 24, 2024
Boucheron Bets on Las VegasThe brand has opened its second U.S. location in the Fontainebleau resort and casino.
EditorsDec 24, 2024
The Spectrum Jewels I Want to Find Under the Tree Associate Editor Lauren McLemore highlights pieces from the AGTA Spectrum & Cutting Edge Awards she’d be thrilled to unwrap on Christmas.
Brought to you by
De Beers Group Launches Holiday Campaign for Natural Diamonds‘Forever Present’ campaign revives the iconic A Diamond is Forever tagline and celebrates the diamond dream.
SourcingDec 24, 2024
Gemfields to Temporarily Suspend Emerald MiningThe move is one of several cost-cutting measures outlined by the company as it faces a weaker luxury market and other challenges.
IndependentsDec 23, 2024
Philadelphia 76ers’ Tyrese Maxey Stars in The 1916 Company’s New CampaignThe retailer’s “On the Clock” campaign celebrates how time, precision, and purpose come together.
EditorsDec 23, 2024
My Favorite Piece of the Week Jewels of 2024Associate Editor Natalie Francisco chose her 12 favorite Piece of the Week picks from the year gone by.
GradingDec 23, 2024
GIA Adds Filler Identification to Emerald ReportsLab clients have the option to request this addition on their emerald reports.
Events & AwardsDec 20, 2024
Two Participants Complete Inaugural Ella Klein InternshipJamie Dunton and Gabriella Botelho are the first graduates of the program, created by the WJA Foundation and Julius Klein Diamonds.
CollectionsDec 20, 2024
Piece of the Week: Retrouvaí’s Ring for CharityIn the spirit of giving, Retrouvaí will donate $4,000 from the sale of this ring to the Los Angeles Regional Food Bank.
IndependentsDec 19, 2024
Michigan’s DeVries Jewelers Unveils New Location in Time for the HolidaysCo-owner Dan DeVries shared what it’s like moving into a space triple the size of its old store and how it feels to be a “real jeweler” now.
CollectionsDec 19, 2024
State Property Transforms Spain’s Generalife Gardens into JewelryAlong with the latest “Gardens” collection, the brand has released limited-edition designs offering more indulgent pieces.
CrimeDec 19, 2024
Alleged Jewelry Thieves Attempt Rowboat EscapeThe man and woman are accused of stealing jewelry from a shipping container then trying to flee by paddling a small boat out into a bay.
SourcingDec 19, 2024
The Second-Largest Diamond Ever Found Now Has a Name The 2,488-carat diamond recovered from a mine in Botswana has been dubbed “Motswedi” while its 1,094-carat sibling is “Seriti.”
SourcingDec 19, 2024
Gemfields Reports Record Ruby Auction Results Despite Challenges at SourceThe average price per carat hit a record high for the miner, which said it remains unaffected by the conflict in Mozambique.
AuctionsDec 18, 2024
Alexandrite Ring Sells for Record-Setting $1.9M at Sotheby’sThe nearly 17-carat stone made history for the color-change gem that, according to the auction house, is experiencing a “notable surge” in the market.
WatchesDec 18, 2024
Historic Titanic Pocket Watch Winds Its Way Back to Tiffany & Co. More than a century after survivors gifted a Tiffany timepiece to the captain of the ship that rescued them, the jeweler has reclaimed it.
TechnologyDec 18, 2024
Picchiotti Utilizes AI in ‘Spotlight’ Video CampaignThe videos highlight how pieces from the “Xpandable” and “Reversible Xpandable” collections put the wearer in the spotlight.
IndependentsDec 18, 2024
Industry Veteran Steve Feldman Set to RetireFeldman reflected on 45 years in the jewelry industry and clarified that it’s not a total retirement.
Events & AwardsDec 17, 2024
Chanel to Receive Gem Award for High Jewelry ExcellenceThe luxury brand is being honored for excellence in high jewelry design in its “Haute Joaillerie Sport” collection.
SourcingDec 17, 2024
Frank Circelli, Founder of Gem Shopping Network, Dies at 75Circelli was a pioneer in the world of TV shopping who is remembered for his passion for gemstones and his big personality.
AuctionsDec 17, 2024
Blue Diamond Fetches $8.8M at Christie’sThe nearly 6-carat stone headlined the recent jewelry auction, which also featured Mica Ertegun’s jewelry.
CrimeDec 17, 2024
‘Black Bin Crew’ Robbers Get 14-16 Years in Prison The three men, who got their nickname because they’d toss the jewelry they stole into black plastic bins, were arrested back in August.
