A majority of small businesses that tapped the taxpayer-funded Paycheck Protection Program expect to run out of money by the first week of August, according to a Goldman Sachs survey released Tuesday.
The findings show that 84 percent of firms that received loans through the small business rescue program would exhaust their funding by the end of the month. Only 16 percent of recipients anticipate being able to maintain their payroll without additional government aid.
The report comes as a resurgence in COVID-19 outbreaks puts the brakes on the economy’s nascent recovery from the crisis and subsequent lockdown. Some states have hit pause on their plans to reopen, while others are reimposing restrictions they had previously lifted, like shuttering restaurants and bars. Workers at Levi’s, United Airlines and Wells Fargo learned this past week they were – or could be – laid off or furloughed soon.