J.C. Penney’s (JCP) future truly hangs in the balance.
A source familiar with the situation tells Yahoo Finance all options remain on the table for the overly indebted retailer, including a full liquidation as a means to better satisfy creditors. The source says J.C. Penney continues to evaluate all options after a debtor-in-possession loan — known as DIP funding — of around $450 million fell through last weekend.
Lenders may be balking on providing J.C. Penney funding to keep its business open during a run through
Businesses are still struggling to access government-backed loans from their banks.
Hina Solanki says she has had a nightmare trying to get support from her bank for her tattoo business to get through the lockdown.
“I can’t pay anything. I’m living on cards. It’s extremely stressful”, she says.
For the last fortnight she has been trying to apply for a £50,000 Bounce Back Loan from her bank.
“But I just get error messages,” she says. “They seem to have a technical fault.”
She’s not alone, even though it is nearly two weeks since the launch of the Bounce Back Loan Scheme (BBLS) to prop up stricken small businesses.
Hundreds of thousands of applications have been approved, but BBC News has seen a string of complaints about leading banks, including Santander, HSBC and Barclays, from customers who have been unable to get any money.
Ms Solanki has built a reputation providing
Here are three of the week’s top pieces of financial insight, gathered from around the web:
No guarantee of forgiveness
Federal loans offered to small businesses affected by the pandemic might not be as easily forgivable as many business owners believe, said Alan Rappeport and Emily Flitter at The New York Times. Paycheck Protection Program loans don’t need to be paid back if “businesses allocate 75 percent of the money to cover payroll costs,” with 25 percent for rent and other overhead expenses. As the crisis drags on, however, “some businesses are facing small payroll expenses because workers have opted for more generous unemployment benefits.” With many stores still under lockdown orders, business owners are growing concerned that they could be saddled with debt. And the process for having the loans forgiven is still unclear. For all the hurdles in getting loans approved, “the forgiveness phase could be 10
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