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Government small business loan program doesn't help the little guy but Harris Co. is on track to do that

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Updated  April 21, 2020 12:21am CDT
COVID-19 and the Economy
FOX 26 Houston

7,000 Harris Co. small businesses have applied for help

As small businesses feel the burn from the economic shutdown due to the COVID-19 pandemic, several thousand of them are applying for help.

HOUSTON - Burger chain Shake Shack got $10 million from the government's small business loan program but gave it back.

The company's CEO says he wanted the money to actually help small businesses and he called the government emergency plan extremely confusing with no user manual.

MORE: Shake Shack to return $10M small business loan

"We know that people are hurting and we are prioritizing family-owned small businesses in Harris County while the government is thinking about big business," said Precinct 2 Commissioner Adrian Garcia.

More than 7,000 businesses applied for the $10 million the County offered as a financial lifeline.

RELATED: New forgivable business loan program for Harris County businesses now active

"The majority of people who applied have 10 or less employees," Garcia said. "That tells me we are hitting the mark."

The most the county offers to businesses is $25,000. Commissioner Garcia says some business owners requested only $10,000.

RELATED: U.S. unemployment claims hit record 6.6 million amid coronavirus outbreak

"Please apply for what you need if you need all of it apply for all of it," said Garcia. "But please only apply for what you need and I believe that's what we're seeing."

Garcia says the need is great.

Based on those applying for the small business loan an additional $142 million is needed.

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"Even in the areas where my two Republican colleagues voted against the program they have the biggest number of people applying for help," said Garcia.