Last day of PPP loan program on first day of closures for more businesses in Arizona

Local businesses forced to close as PPP loan window runs out

TUCSON, Ariz. (KOLD News 13) - The chance for small businesses to get PPP loans is now closed. This comes on the heels of Governor Ducey’s executive order to close bars, gyms, theaters and water parks again.

At Casa Marana, to-go is part of their business. Customers can pick up alcoholic beverages and take them home, but they can no longer stay and have a few.

“It’s affected our business a lot because normally, right now, we’d have 15-20 people sitting and drinking, having a pizza…so now we’re just a glorified liquor store,” said Jon Cornely, bar manager Casa Marana.

Governor Ducey ordered bars, with class six and seven liquor licenses to close for 30 days—among other businesses where large crowds gather. It is the second time these businesses have had to close for sit-down service, and the last day to apply for PPP loans. Senior tax manager, Eric Freeman, said the deadline to apply was close of business Tuesday.

“I think a lot of businesses are weighing whether to stay open after they spend what money they did get,” said Freeman, who works at Beachfleischman.

Casa Marana got one of the first rounds of PPP loans. Normally, they said their retail sales make up about 15-20 percent of their business. So, now, they’re hoping to stay afloat on that and the money from the PPP.

“Nothing significant, but enough to get us by, but we’ll have a cushion,” said Cornely when asked if the PPP money will be enough to get the business through at least another 30 days. “It’s kind of just up in the air at this point.”

Cronely said they’re hopeful they will be alright. There’s still more than $130 billion in the PPP loan fund for businesses, but how that will be spent or repurposed is something the legislature is deciding. There are other loans like the Economic Injury Disaster Loan or the Main Street Lending Program, but Freeman said those are not as flexible and forgivable as PPP loans.

“I think a lot of those loans probably aren’t going to make sense for a lot of businesses that might be suffering,” said Freeman.

According to the PPP website, more than $500 billion in loans have been given out.

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