After receiving the loan, Austin Pets Alive is delaying reopening of stores – Business – Austin American-Statesman
After Austin Pets Alive planned to reopen its thrift stores on Friday, he said Thursday that it had received a small business loan and would postpone openings.
“Austin Pets Alive just heard it was getting the Paycheck Protection Program loan,” said a statement from the shelter and rescue organization. “APA applied to the Small Business Administration program to offset the losses incurred in closing its thrift stores and protecting its employees, but was not originally selected as the recipient of the funding.”
The organization said the loan offers “some protection” for losses it has so far suffered in the coronavirus pandemic.
“Although it believed it could safely open its thrift stores, APA decided to keep its thrift stores closed and make the decision to reopen week after week as needed,” the statement said .
According to the Small Business Administration, a paycheck protection program loan is intended to provide small businesses with a direct incentive to keep their employees on payroll.
The SBA grants the loans when all employees have been on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
Like all Austin stores that were deemed non-essential, Austin Pets Alive stores had to close in March due to the pandemic.
Governor Greg Abbott announced Monday that the first phase of his plan to stimulate the Texan economy will begin on Friday, allowing all retailers, restaurants, cinemas and malls to reopen at 25% of their licensed capacity. Museums and libraries can also reopen with the same occupancy restrictions.
Austin companies are deciding whether to reopen in compliance with security protocols or wait until there is more evidence that the coronavirus threat is subsiding.