Small businesses on edge amid COVID-19 surge

ABC News’ Devin Dwyer reports on the Paycheck Protection Program and whether it’s doing enough to keep small businesses afloat through the pandemic.
6:55 | 07/11/20

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Transcript for Small businesses on edge amid COVID-19 surge
The resurgence of Kobe nineteen this week his front deepening anxiety for millions of small businesses the phase re openings and have once offered hope. For now overshadowed by fears among some customers and renewed shutdowns in many states that's it we're taking a closer look. The 600 billion dollar paycheck protection program that was supposed to help many of these businesses and their employees weather the storm. But is it working. Our ABC's Devin Dwyer takes a look. Before corporate nineteen U street music call was a poll seemed river of life. Cultural crossroads in the nation's capital and a profitable three million dollar a year business for owner will Eastman. But now it's. Been very tough I had two temporarily furlough all my stuff was able to bring back five full timers too to keep keep keep money from the government. But it's been extremely tough we have no revenue coming in whatsoever. The PPP your paycheck protection program has paid out to nearly five million American small businesses fighting to survive the pandemic. Congress guarantees the loans qualified businesses get a rapid infusion of cash to pay employees and the rent. Eastman received 120000. Dollars in May but that money it's about to run helped the life from PPP experts in two weeks we're gonna do. We are sullying at lots of T shirts. To help fund us right now we're literally the guy who was jogging and got hit by the meteor like the one in a trillion chance you know it's like. You look at every list then music venues are at the bottom. We were the first to close it will be the last to re open. In DC in several states the final phase of reopening won't come until there's a vaccine. 3 new race nightclub of 25 years last partied in March. Now he's preparing to auction off the furniture and left over liquor after deciding to close at emotionally how hard was it. To call quit. So. Ugly home due to difficult to do it feels almost last week through there was. The business side and Susan was pretty clear. Yury got a PTT loan this spring but said he couldn't cover expenses indefinitely we're looking act a tease a unit have. All false thing title game accruing more Ren Denis Morrison's death so we talk about. Hundreds of thousands of dollars and into the day once we can view with reopened and we don't even know what the reopening would beat. I am very concerned that we are going to lose. How many ants twenty to 30% of first small businesses. Former small business administrator Karen mills who helped guide the recovery from the Great Recession says another financial lifeline from congress is needed soon. Is the number one need her small businesses. Money it is not. I dance Burton took down that helps hide them over until we get our arms around this health crisis and they it will been safely. While lawmakers debate more financial relief one business just across town is teetering on the brink what he. It lost probably. 785. To 80% are and patent. Near Stewart's family wig and hair extensions business was booming before coal bed now they're barely staying afloat and struggling with an application for the PPP. So I think there needs to be more streamlined process. To allow us access to these funds this shouldn't happen months ago. And here we are still waiting and it's July how dependent is your survival time giving them money or isn't it. Definitely dependent on needing that money and it also being able to retire our employees. To make matters worse Stewart's shop was looted during the recent protests after the death of George Floyd. She says more than 150000. Dollars in merchandise was stolen. And I think as we were getting ready to open so we had. Restock as much as we could the PPP loan that's just a minute really difficult process and I just think it's completely. Unfair that he's ever corporations were allowed to get such a large sums up. The trump administration this week revealed the biggest recipients of PPP loan so far. Among the major restaurant chains like PF Chang's hedge funds real estate firms and clothing mines including Kanye West sneaker brand yeah easy. At least a dozen businesses have ties to political leaders. Including a hotel partially owned by the husband of House Speaker Nancy Pelosi in a shipping company run by the family of transportation secretary Elaine Chao. It's very disappointed. Because the most vulnerable small businesses out there. Let the little ones overall program is going to have saved a lot of businesses but it fewer bad acting should not do that again. President trump small business chief Joseph vita cries out. Calls PPP one of the most successful and consequential federal disaster response programs. In memory you already have 500 billion dollars in the market. And enabled a lot of the employment numbers that you seem. After historic spike unemployment is on the decline from fourteen point 5% in April to thirteen point 3% in May. Last month the unemployment rate dipped to eleven point 1% he can you Kwon of. Five how many employees. That loan helped you see me at full capacity our current sixteen employees so that PP cheaper ways. Critical and eating well over 50% of our keen. That team that republic restored lives distillery now slowly resupply and restaurants with Kraft vodka in Bergen. They're still making hand sanitize or we saw back in March. But now the distillers 150000. Dollar PPP loan is almost gone. I don't know why anyone seeking a victory lap and anything you can't. Clean huge success when I first saw many instances Ers are going under today and those of us like like offset are not yet. Could in the teacher so it has been very very helpful but we're not anywhere near government. Working in her favor is steady demand from walk up customers were trickling back. The foot traffic also helping bookstores finger I would say an upward trajectory that Adam water is considers his lost city books another PPP's success story. As a would bring back the majority of my staff and everyone does not a going could come back. I'm but I was able to offer. Employment everybody who wondered at how optimistic are you that you're very powerful sense still. Fairly and you see play the next few months ago I mean has listened to the news this morning about Texas and listen to news about his big surges and receives street. Little reason to think that it won't come back. Tell us fear of another economic shut down keeping small business owners on edge and hoping the government will be ready to quickly lend again. If recovery veers off course. Three BC news live I'm Devin Dwyer in Washington.

This transcript has been automatically generated and may not be 100% accurate.

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