President Trump Is Fighting To Protect Small Businesses

The Trump Administration's Paycheck Protection Program Has Been Extremely Popular As Thousands Of Small Businesses Have Been Able To Apply For Up To $10 Million Dollars In Loan Relief

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The Facts:

ON APRIL 3, 2020, SMALL BUSINESSES BEGAN APPLYING FOR $350 BILLION IN FORGIVABLE LOANS FUNDED BY THE CARES ACT

• Small businesses and sole proprietorships were able to start applying for the small business loans on April 3^rd and self-employed people and independent contractors were able to start applying on April 10.
  • The $350 billion program provides loans to businesses with 500 or fewer employees ; the loans will be 100% forgiven if the business retains its employees.
  • Businesses are eligible for loans for up to $10 million and each loan covers up to two months of their average monthly payroll costs from the last year plus an additional 25% of that amount.
  • Payroll costs include wages, including tips , up to $100,000 per employee, taxes, and benefits including parental, family, medical, or sick leave, health care and retirement.
• Since the program launched on April 3, the SBA has " generated nearly 400,000 loans for more than $100 billion ," an SBA spokesperson said "that's more than the $28 billion in loans the SBA gave out for the entirety of 2019."
• CNBC's Jim Cramer applauded the paycheck protection program: " phenomenal, successful ."
  • Cramer: " without a doubt a level of cooperation between businesses & the government that I've never seen."

LOCAL BANKS AND STATE BANK ASSOCIATIONS HAVE REPORTED THAT SMALL BUSINESSES ARE ALREADY BEGINNING TO RECEIVE THE FINANCIAL ASSISTANCE THEY NEED

• William Ware, President of Amarillo National Bank, said he estimates that the PPP will save up to 15,000 jobs in the Amarillo area.
  • Ware explained how the program has been so successful that he hopes that the government will " allocate more funds " for the PPP "due to the unprecedented demand."
  • Ware called the PPP a lifeline for many businesses and stated that his bank is "grateful" to be able to offer the program to their customers.
• The Connecticut Bankers Association said that within 24 hours , PPP applicants had already begun to receive the financial assistance necessary to help their businesses.
• The New Hampshire Bankers Association announced that 37 banks in the state had issued $400 million in PPP loans to nearly 2,000 businesses within the first week .
  • "If that money is used to retain workers- a condition of their forgiveness- it would save more than 10,000 jobs."
• Jason Stuecker, President of the Louisville Market for Forcht Bank, said that the SBA loan "can be a lifeline for a small business dealing with economic coronavirus fallout."
• Jeff MagGinnis, SBA Sales Manager with Louisville First Financial Bank, said that they have received 4,100 applications as of April 7^th which represents $957 million in funding requests.
  • Magginnis stated that First Financial Bank is confident in processing PPP applications , and is willing to do whatever they can to process applications for borrowers, and get small businesses the funds they need quickly.

SMALL BUSINESS OWNERS ACROSS THE COUNTRY ARE GRATEFUL FOR THE BADLY NEEDED ASSISTANCE

• Central LA Small Business owner: "pleasantly surprised at just how smooth" PPP process is.
• ​ Bitty & Beau's Coffee owner: The Paycheck Protection Program has allowed us to save all employees' jobs.
• Don Cunningham, President and CEO of Lehigh Valley Economic Development Corp in Colorado: "I think it's a great effort and it was done quickly, and the channels of payments are in the right area."
• Karen Hoskins, owner of Montanya Distillers in Colorado: "This really benefits companies that have been on the straight and narrow."
• Jason Mulvene, President of Blue Ocean Traders in Kentucky: "This will be a great lifeline to retain employees and cover expenses in the short term."
• Gat Caperton, CEO of Gat Creek Furniture in West Virginia: "It is gigantic, and it should prove very helpful to small businesses like us and our retailers."
• Adam Waterrus, owner of Lost City Books in DC, said he is optimistic the loan program will keep his business afloat.
• Pia Carusone, CEO and co- founder of Republic Restoratives Distillery in DC, said the loan forgiveness program would help pay bills and keep their business running.
• Jim Uridales, owner of Mesitizo , a restaurant in Louisiana, said he was eager to apply for the SBA loan program, "there's no way we could survive without something."
• Leslie Stierle, owner of Salon Aerie in Louisiana, is hopeful that "this package will help sustain us enough to get back to where we were."
• Chris Hillen, owner of Seal Tex in Texas: "For many business owners, this is a chance to boost cash flow immediately, keep workers on staff and build a bigger financial cushion."

WITH THE SUCCESS OF THE PPP BRINGING AID TO SMALL BUSINESSES, THE TRUMP ADMINISTRATION URGED CONGRESS TO PASS AN EXPANSION OF $250 BILLION TO THE PROGRAM

• The economic stimulus package designated $350 billion to fund the program to keep money flowing to workers while at the same time positioning businesses to snap back quickly once the crisis subsides.
  • Treasury Secretary Steven Mnuchin has said the program will provide loans to every business who wants one and vowed to request more money if the existing $350 billion is insufficient.
• On April 8, 2020, President Trump announced he was looking to expand successful the Paycheck Protection Program by $250 billion to support small businesses in need.
• Brad Close, President of The National Federation of Small Businesses, encouraged all legislators to back the President's request to add $250 billion to the program.
• Senate Majority Leader Mitch McConnel (R-KY) proposed legislation to boost $250 billion in the "popular paycheck protection program" to allow the program to continue to help small businesses in need .
  • In response to the proposal, Senate Democrats blocked the measure even though 6.6 million more people have filed for unemployment benefits.
  • As negotiations are expected to continue, House Speaker Nancy Pelosi (D-CA) stated that the proposal to boost the program would not be passed by unanimous consent in the House.
• On April 9, 2020, the Federal Reserve and the Treasury Department announced a $2.3 trillion in financing to support "businesses, workers, states and localities."
• The announcement is an effort to provide additional assistance, to support the economy, including bolstering the PPP by supplying liquidity to financial institutions providing the loans to small businesses.

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ON APRIL 3, 2020, SMALL BUSINESSES WERE ABLE TO START APPLYING FOR $350 BILLION IN FORGIVABLE LOANS UNDER THE CARES ACT WHICH WAS SIGNED BY PRESIDENT TRUMP

On April 3, 2020, The Country's 30 Million Small Businesses Were Able To Start Applying For Loans Up To $10 Million To Help Small Businesses Pay For Payroll, Rent, And Other Expenses

Small Businesses And Sole Proprietorships Were Able To Start Applying For The Small Business Loans On April 3^rd And Self-Employed People And Independent Contractors Were Able To Start Applying On April 10. "Treasury's fact sheet for borrowers states that small businesses and sole proprietorships will be able to start applying for loans on Friday through existing SBA lenders, and self-employed people and independent contractors will be able to start applying for loans through existing SBA lenders on April 10. Other lenders will be able to start to make loans through the program once they are approved." ( The Hill , 3/31/20)

• The $350 Billion Program Will Provide Loans To Businesses With 500 Or Fewer Employees; The Loans Will Be 100% Forgiven If The Business Retains Its Employees. "The coronavirus relief package created a nearly $350 billion program under which businesses with 500 or fewer employees can receive loans of up to $10 million. The loans will be forgiven if businesses use the funds to cover payroll costs and other operating expenses in the eight weeks following loan origination." ( The Hill , 3/31/20)
• Businesses Are Eligible For Loans For Up To $10 Million And Each Loan Will Cover Up To Two Months Of Their Average Monthly Payroll Costs From The Last Year Plus An Additional 25% Of That Amount. "How large can my loan be? Loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. That amount is subject to a $10 million cap. If you are a seasonal or new business, you will use different applicable time periods for your calculation. Payroll costs will be capped at $100,000 annualized for each employee." ( Treasury Department , Accessed 4/2/20)
• Payroll Costs Include Wages, Including Tips, Up To $100,000 Per Employee, Taxes, And Benefits Including Parental, Family, Medical, Or Sick Leave, Health Care And Retirement . "Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee); Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit; State and local taxes assessed on compensation; and For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee." ( Treasury Department , Accessed 4/2/20)

The Program Has Been Praised As Success Since It Launched On April 3rd, As The SBA Has Generated Nearly 400,000 Loans For More Than $100 Billion

Since The Program Launched On April 3, The SBA Has "Generated Nearly 400,000 Loans For More Than $100 Billion," An SBA Spokesperson Said "That's More Than $28 Billion In Loans They Gave Out For The Entirety Of 2019." "Nationally, the SBA has generated nearly 400,000 loans for more than $100 billion since the program began on April 3, according to an SBA spokesperson. That's more than $28 billion in loans they gave out for the entirety of 2019." ( 4WWL , 4/8/20)

The Launch Of The Paycheck Protection Program (PPP) A Federal Loan Program To Keep Small Businesses And Independent Contractors From Laying Off Workers Processed $4 Billion In Loans Across The Nation On It's First Day. "A new federal loan program designed to keep small businesses and independent contractors from laying off their workers processed $4 billion in loans nationwide on its first day up and running, according to a group representing Connecticut's lenders." ( Journal Inquirer , 4/6/20)

CNBC'S Cramer Applauded The Paycheck Protection Program As "Phenomenal, Successful." JIM CRAMER: "Steven Muchnuchin good to have you back. SEC. STEVEN MUCHNUCHIN: "Great to be with all of you." CRAMER: "Phenomenal, successful this program, phenomenally, so successful we need more money already, it's small and medium-sized businesses, community banks doing a terrific job." (CNBC's "Squawk on the Street," 4/8/20)

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• CNBC's Cramer: "Without A Doubt A Level Of Cooperation Between Businesses & The Government That I've Never Seen." SEC. STEVEN MUCHNUCHIN: "So chair Powell and I are doing everything together to use their authorities and our authorities, and we have great confidence that this will create enormous liquidity in the market for small businesses, medium sized businesses, big businesses this is all about keeping Americans working. JIM CRAMER: "Mr. Secretary, let's talk about that, bought I think there is, without a doubt, a level of cooperation between business and government that I have never seen and i think that the businesses want very much, they're taking these pledges." (CNBC's "Squawk on the Street," 4/8/20)

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LOCAL BANKS AND STATE BANK ASSOCIATIONS HAVE REPORTED THAT SMALL BUSINESSES ARE ALREADY BEGINNING TO RECEIVE THE FINANCIAL ASSISTANCE THEY NEED

Local Banks Are Calling The PPP A "Lifeline" For Small Businesses As They Are Helping Applicants Through The Process

William Ware, President Of Amarillo National Bank, Said He Estimates That The PPP Will Save Up To 15,000 Jobs In the Amarillo Area. "Many local businesses were on the verge of shutting down and this program will save them," says William Ware, President of Amarillo National Bank. "We estimate that the proceeds from these loans have helped save over 15,000 jobs in the area so far." ( ABC 7 News , 4/6/20)

• Ware Explained How The Program Has Been So Successful That He Hopes That The Government Will "Allocate More Funds" For The PPP "Due To The Unprecedented Demand." "Other banks and credit unions in the area are offering the program. Ware says that the demand exceeds the available funds and the program will likely run out of money within a matter of days. He's hopeful that the government will allocate more funds for the program due to the unprecedented demand." ( ABC 7 News , 4/6/20)
• Ware Called The PPP A Lifeline For Many Businesses And Stated That His Bank Is "Grateful" To Be Able To Offer The Program To Their Customers. "'This is historic legislation that will be the lifeline for many businesses. It has never been done before and we are grateful to be able to offer the program to our customers' says Ware." ( ABC 7 News , 4/6/20)

The Connecticut Bankers Association Said That PPP Applicants "Have Already Begun To Receive The Financial Assistance Necessary To Help Them" Within 24 Hours Of Receiving Financial Assistance. "In a statement released Saturday, the Connecticut Bankers Association said the volume of applications for the Paycheck Protection Program processed in just a 24-hour period shows small business owners have already begun to receive the financial assistance necessary to help them weather an economy battered by the worsening coronavirus outbreak." ( Journal Inquirer , 4/6/20)

The New Hampshire Bankers Association Announced That 37 Banks In The State Had Issued $400 Million In PPP Loans To Nearly 2,000 Businesses Within The First Week. "Some 37 New Hampshire banks issued some $400 million in Paycheck Protection Program forgivable loans to nearly 2,000 businesses in the first week the program was rolled out, the New Hampshire Bankers Association said Friday." ( New Hampshire Business Review , 4/12/20)

• "If That Money Is Used To Retain Workers- A Condition Of Their Forgiveness- It Would Save More Than 10,000 Jobs. " " If that money is used to retain workers - a condition of their forgiveness - it would save more than 10,000 jobs." ( New Hampshire Business Review , 4/12/20)

Jason Stuecker, President Of The Louisville Market For Forcht Bank, Said That The SBA Loan "Can Be A Lifeline For A Small Business Dealing With Economic Coronavirus Fallout." "Jason Stuecker, president of the Louisville market for Forcht Bank, says an SBA loan can be a lifeline for a small business dealing with economic coronavirus fallout - if they can get into the pipeline." ( Louisville Business First , 4/9/20)

Jeff Magginnis, SBA Sales Manager With Louisville First Financial Bank, Said That They Have Received 4,100 Applications As Of April 7 ^th Which Represents $957 Million In Funding Requests. "Within the first few hours of accepting applications for the PPP, Jeff Magginnis, SBA sales manager with Louisville-based First Financial Bank, said his institution already had more than 500 applications. As of Tuesday, the bank reported that it's received 4,100 applications representing $957 million in funding requests." ( Louisville Business First , 4/9/20)

• Magginnis Stated That First Financial Bank Is Confident In Processing PPP Applications, And Is Willing To Do Whatever They Can To Process Application To Borrowers, And Get Small Businesses The Funds They Need Quickly. "'I'm happy to report that First Financial Bank is in a strong liquidity position, capital position, asset quality and earnings to be able to manage through this, so we're very confident,' Magginnis said. 'The best thing for clients to know is that we're out here, we want to help the small businesses and we're going to do whatever we can to walk through that process with our borrowers and get these funds in their hands.'" ( Louisville Business First , 4/9/20)

SMALL BUSINESS OWNERS ACROSS THE COUNTRY ARE GRATEFUL FOR THE BADLY NEEDED ASSISTANCE

Small Business Owners Across The Country Have Praised The Loan Program And Are Thrilled That The Recovery Package Rewards Business Owners Who Do The Right Thing

Central LA Small Business Owner: "Pleasantly Surprised At Just How Smooth" PPP Process Is. REPORTER: "Finally coming in for small businesses around the country and here in central Louisiana. The government stimulus bill, known as the CARES act, is providing financial relief for small businesses that have been scaled back or closed down because of the COVID-19 outbreak. A small business is defined as one with less than 500 employees. The Paycheck Protection Program gives businesses the loan money they need to maintain payroll, hire back employees who have been laid off, and to cover overhead like rent while the businesses are closed due to stay at home orders. The loan money will not have to be paid back later. One central Louisiana business owner we spoke with says he's been pleasantly surprised at just how smooth the process is." JOHN MIGUEZ: "You fill out the information. it takes maybe 15 minutes and the rest of the time is maybe gathering up your tax returns, which you should have. Then you got to get your 940 and your 941 and you make copies of those, and you upload them into the system. I mean it took us 15 minutes to apply for the loan and we did that on Sunday and on Tuesday we had approval, so it went really fast. So now it's up just to our local bank to finish up the paperwork." REPORTER: "Impact Advertising says they think their positive experience with the loan process has been made easier by the fact that they bank with a local, central Louisiana bank. They say the bank walked them through the entire process. Impact recently laid off four of their eleven employees, but hope to be able to hire them back once the loan money comes through." (KALB, 4/13/20)

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Restaurant Owner Says Paycheck Protection Program Will Help Pay Rent, 'A Safety Net for Us'. REPORTER: "Small businesses are applying to the federal paycheck protection program in an effort to stay afloat amid the coronavirus congress passed the billion forgivable loan program in late March. It provides funding for businesses with fewer than 500 employees. Employers to get up to 2 and a half times their average monthly payroll costs for 2019. This includes employee salaries benefits rent utilities in mortgage interest. The lone turns into a grant and does not have to be paid back if the business uses at least 75% of the money on payroll. The owners at Le Jardin Du Roi in Chappaqua recently applied to the program." RESTAURANT OWNER: "Having the money in the banks it's almost like a safety net for us right now, obviously a bit be able to pay my rent without my landlord calling me." (News 12 Westchester, 4/8/20)

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Bitty & Beau's Coffee Owner: Paycheck Protection Program Has Allowed Us To Save All Employees' Jobs. SANDRA SMITH: "So tells us about your experience of applying for this small business loan we've been hearing so much about this relief in the middle of this crisis for our small businesses what happened when you applied for it." AMY WRIGHT: "Sure, so we operate five brick and mortar coffee shops that are all run by people with intellectual and developmental disabilities and Live Oak Bank which is also headquarter here in Wilmington, North Carolina has been a huge supporter of our mission since we opened our doors. When they had heard we had laid off all of our 120 employees with disabilities they stepped in they said we want to help you through this process, and when the PPP loans come available we are here to help you. They were very accessible and seamless for us and just made bringing our employees back to work so that they can earn their paycheck again possible." SMITH: "How did your employees react to that Amy?" WRIGHT: "So were hearing that news later today through a Zoom call and we got our final funding yesterday and I'm very excited to share this with them because 80% of people with intellectual and developmental disabilities are unemployed and that is a national statistic. Most of our employees have never had a job before, so when we had to temporarily lay them off it was a very scary time, so I'm just very excited to share with them that their going to continue to earn a paycheck and contributing to our business." SMITH: "That's great news and I think we all need some hopeful for some good news right now Amy. So did you have to shut the doors to all of your coffee shops and shut down operations entirely?" WRIGHT: "We did, we made that decision about three weeks ago before the federal mandate. We decided for the health and safety of our employees as well as our customers that the right thing to do was to temporarily close our shops. It was a very tough day for us, but fortunately we have an online businesses well that continues to support us through the sale of coffee beans and merchandise and our employees I'm excited to bring back to the payroll so they can help with handwritten notes that are included with each order we ship." SMITH: "Wow, we will see about whether or not there can be more funding for these small businesses so many have responded we hear from the big banks as well as the smaller ones that they are getting an unbelievable amount of requests because so many of the small businesses have been hurt through this. Amy this is a great a story, while we are talking we share pictures of your employees there in your shops. I'm sure they are going to be thrilled with this announcement when you make it this afternoon. Congratulations to you and we will follow up with you to see how you guys are doing." (Fox News' "Americas Newsroom," 4/8/20)

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Don Cunningham, President And CEO Of Lehigh Valley Economic Development Corp In Colorado: "I Think It's A Great Effort And It Was Done Quickly, And The Channels Of Payments Are In The Right Area." "Some praised the bill's focus on small businesses. 'I think it's a great effort and it was done quickly, and the channels of payments are in the right area,' said Don Cunningham, president and CEO of Lehigh Valley Economic Development Corp. Cunningham said the focus should be on small businesses first and noted the bill would include $350 billion administered through the SBA." ( Lehigh Valley Business , 3/31/20)

Karen Hoskins, Owner Of Montanya Distillers In Colorado, Applauded How The CARES Act Protects Business Owners To Do The Right Thing. "Hoskin, with Montanya Distillers, closely followed the CARES Act 'get formed, unraveled and rebuilt.' She met with other Gunnison Valley business leaders connected through Western Colorado University's ICELab, to discuss options and benefits on weekly Zoom calls. She applauds how the CARES Act seems to protect business owners who do the right thing." ( Colorado Sun , 4/1/20)

• Hoskins Praised The Fairness Of The Bill Towards Small Businesses: "This Really Benefits Companies That Have Been On The Straight And Narrow, Which Is My Company." "'What I was really impressed with was if you've been dodging anything in the past - payroll taxes, paying under the table - that's really going to bite you back. This really benefits companies that have been on the straight and narrow, which is my company,' Hoskin said. 'If we had 100 employees in January or February and we only have 80 when we applied for the loan, we would only get 80% of the loan forgiven.'" ( Colorado Sun , 4/1/20)

Jason Mulvene, President Of Blue Ocean Traders In Kentucky: "This Will Be A Great Lifeline To Retain Employees And Cover Expenses In The Short Term." "With regard to the stimulus bill's policies and programs, Jason Mulvene, president of Blue Ocean Traders, commented, 'The biggest impact out of the gate for small to mid-size businesses is the PPP loan program. With its significant forgivable portion, this will be a great lifeline to retain employees and cover expenses in the short term.'" ( Home Accents , 4/1/20)

Gat Caperton, CEO Of Gat Creek Furniture In West Virginia: "It Is Gigantic, And It Should Prove Very Helpful To Small Businesses Like Us And Our Retailers." "Furniture Today's discussion with additional industry leaders echoed these positive sentiments. For example, Gat Caperton, CEO of Gat Creek Furniture, commented on the stimulus bill, saying, 'It is gigantic, and it should prove very helpful to small businesses like us and our retailers.' Click here to see the full Furniture Today article." ( Home Accents , 4/1/20)

Adam Waterrus, Owner Of Lost City Books In DC, Said He Is Optimistic The Loan Program Will Keep His Business Stay Afloat. " Adam Waterreus, who owns Lost City Books in D.C., has seen a steep 75% decline in sales since the pandemic hit. He's laid off four employees and is struggling to keep three others on payroll. 'It seems like (financial relief) might be happening, which I think is important, that they're giving certain provisions to small businesses,' he said of the $2 trillion federal coronavirus relief package. Waterreus said he is nervous about taking on more debt with new loans but is optimistic financial aid might keep him afloat for the short-term." ( ABC News , 3/26/20)

Pia Carusone, CEO And Co-Founder Of Republic Restoratives Distillery In DC, Said The Forgiveness Loan Program Would Help Pay Bills And Keep Their Business Running. "Congress this week is expected to approve a major infusion of cash -- more than $350 billion in emergency loans for small businesses that include a big perk: owners won't have to pay back the government, if they use the money to cover rent or worker wages. 'I would take that deal any day to allow us to do that, if those loans could therefore be forgiven,' said Pia Carusone, CEO and co-founder Republic Restoratives Distillery in Washington, D.C., which produces craft vodka, bourbon and brandy. 'Our bills don't just stop. We have a working capital loan that we've got so much debt on and a large rent bill every month from our landlord,' Carusone said. 'So, we're not in a good position to have nearly zero revenue coming in to our wholesale business.'" ( ABC News , 3/26/20)

Jim Uridales, Owner Of Mesitizo, A Restaurant In Louisiana, Said He Was Eager To Apply For the SBA Loan Programs, "There's No Way We Could Survive Without Something." " Mestizo owner Jim Uridales has already signaled his interest to his local banker, saying 'it's all about getting in the queue.' Though his application is ready to go, Uridales is skeptical a loan will be enough to help him weather what he's anticipating will be a slow May, given the cancellations of graduations and other celebratory events he's used to catering. After closing the dining area of his Mexican restaurant, Uridales had to lay off 20 workers and has subsequently seen a 60%-70% decline in sales. 'We're absolutely interested-there's no way we could survive without something,' says Uridales, who watched a 2 p.m. webinar with the Louisiana Restaurant Association to learn more about the program. 'We just did all that remodeling [in 2018], so there might be a way for us to repackage our whole loan program at a cheaper interest rate.'" ( Business Report , 3/27/20)

Leslie Stierle, Owner Of Salon Aerie In Louisiana Is Hopeful That "This Package Will Help Sustain Us Enough To Get Back To Where We Were." "However, some business owners-like Lesli Stierle, who runs Salon Aerie on Coursey Boulevard-don't use an authorized 7(a) lender as their primary bank, complicating the process. When reached by phone this afternoon, Stierle told Daily Report she had been on hold with the SBA for the past two hours. 'I'm hoping this package will help sustain us enough to get back to where we were and get our clients back in the door,' says Stierle, who shut down her hair salon eight days ago and has since been selling gift cards and products online. 'My staff is on unemployment, we have very little money coming in, and our clientele is out of work.'" ( Business Report , 3/27/20)

Chris Hillen, Owner Of Seal Tex In Texas: "For Many Business Owners, This Is A Chance To Boost Cash Flow Immediately, Keep Workers On Staff And Build A Bigger Financial Cushion." "For many business owners, this is a chance to boost cash flow immediately, keep workers on staff and build a bigger financial cushion. Such moves could make the difference in surviving today's crisis and coming out stronger on the other side. 'I'm all over it,' said Chris Hillen, who's never applied for a government business loan but sees no downside to this one. 'I'm planning to hold on to my employees anyway, so this could be great.' His Dallas company, Seal Tex, repairs commercial kitchens and has some big clients, including Texas Roadhouse, Olive Garden and Wendy's. Last week, he sent his 40 employees home, both for their safety and to help slow the spread of the virus in North Texas. He's paying them as if they were working 30 hours a week, he said, because it's the right thing to do and he can afford it. With a government loan, he could bump up their hours or keep carrying on as is, depending on the pace of the recovery. 'This will allow us to fight on for longer,' Hillen said." ( Dallas News , 4/1/20)

WITH THE SUCCESS OF THE PPP BRINGING AID TO SMALL BUSINESSES, THE TRUMP ADMINISTRATION URGED CONGRESS TO PASS AN EXPANSION OF $250 BILLION TO THE PROGRAM

In An Effort To Help Keep Money Flowing To Workers The Trump Administration Vowed To Request More Money If The Current $350 Billion Is Insufficient

The Economic Stimulus Package Designated $350 Billion To Fund The Program To Keep Money Flowing To Workers While At The Same Time Positioning Businesses To Snap Back Quickly Once The Crisis Subsides. "The program is already funded with $350 billion and it's certainly possible more will be added as the government scrambles to avert a total economic meltdown. It's a very large investment by the government to keep money flowing to workers, while at the same time positioning businesses like yours to snap back quickly once the crisis subsides. The loans, made by private lenders, are 100 percent federally guaranteed." ( The Boston Globe , 3/31/20)

• Mnuchin Has Said The Program Will Provide Loans To Every Business Who Wants One And Vowed To Request More Money If The Existing $350 Billion Is Insufficient. "Mnuchin also promised that the administration would request more money if it sends out the $350 billion and additional small businesses are clamoring for help. 'If we run out of money, and this is a huge success, we will absolutely go back to Congress and ask for more money,' he said." ( The Washington Examiner , 3/30/20)

As The Program Has Been Successful, President Trump Has Asked Congress To Expand The Program By $250 Billion

On April 8, 2020, President Trump Announced His Administration Was Looking To Expand Successful Paycheck Protection Program By $250 Billion To Support Small Businesses In Need. PRESIDENT DONALD TRUMP: "Yesterday, I asked Congress to provide an additional $250 billion to expand the incredibly successful Paycheck Protection Program - you've seen what's gone on there; it's incredible, actually - which is allowing our small businesses to keep employees on the payroll and get ready for the opening. Like a second opening. To protect millions of American jobs, I'm asking Congress to pass additional funding for this program this week, as soon as possible. And I think we have a pretty good understanding with the Democrats. Hopefully, it's going to be bipartisan. We do not have time for the partisan games and we don't want that - the obstruction or totally unrelated agendas. We want to do this for the small businesses and the workers. And we can do a phase four and phase four will be later. This will be an expansion of what we've already done because it's so successful. The $350 billion will be expanded by hopefully 250 and, if you look at the kind of loans, thousands - tens of thousands of loans to small businesses. It's a - it's a great thing to see. It's turned out to be more successful and more productive than anybody would have thought. But Democrats or Republicans are coming together to get that job done. That's a very important job." (Fox News's "Special Coverage," 4/8/20)

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Brad Close, President Of The National Federation Of Small Businesses, Responded To The President's Request By Encouraging All Legislators To Back The $250 Billion Expansion To The Program. "'As delays continue every day, we are hearing from many of the smallest businesses that their biggest concern is the $349 billion lending program running dry before their applications are processed,' Brad Close, president of the National Federation of Small Businesses, said in a statement. 'The administration requested an immediate addition of $250 billion for small businesses, an action all legislators should rally behind.'" ( USA Today , 4/9/20)

Regardless Of The Urgency, Democrats Blocked The Expansion Of The Paycheck Protection Program

Senate Majority Leader Mitch McConnel (R-KY) Proposed Legislation To Boost $250 Billion In The "Popular Paycheck Protection Program" To Allow The Program To Continue To Help Small Businesses In Need. "Senate Majority Leader Mitch McConnell, R-Ky., proposed legislation that would boost the popular Paycheck Protection Program (PPP) by $250 billion in addition to the $349 billion Congress approved last month as part of the $2.2 trillion pandemic response known as the CARES Act. McConnell said the money was needed to keep afloat a program that has processed more than $100 billion in loans to nearly 400,000 businesses in less than a week, according to the Small Business Administration." ( USA Today , 4/9/20)

• In Response To The Proposal, Senate Democrats Blocked The Measure Even Though 6.6 Million More People Have Filed For Unemployment Benefits. "Senate Democrats blocked a move by the Trump administration Thursday to provide businesses with another $250 billion to keep their employees on the payroll, even as 6.6 million more people applied for unemployment benefits and the three-week toll for job losses reached 1 in 10 American workers." ( The Washington Times , 4/9/20)
• As Negotiations Are Expected To Continue, House Speaker Nancy Pelosi (D-CA) Stated That The Proposal To Boost The Program Would Not Be Passed By Unanimous Consent In The House. "Negotiations on this interim bill will continue into next week. House Speaker Nancy Pelosi, California Democrat, said the Republican proposal wouldn't pass by unanimous consent in the House." ( The Washington Times , 4/9/20)

In An Effort To Bolster The PPP, And Support The Economy, The Federal Reserve And The Trump Administration Stepped Up And Unveiled $2.3 Trillion In Emergency Loans

On April 9, 2020 The Federal Reserve And The Treasury Department Announced A $2.3 Trillion In Financing To Support "Businesses, Workers, States And Localities. "Just ahead of the announcement of more record job losses, the Fed and the Treasury Department unveiled another major move to prop up the economy: $2.3 trillion more in financing to help support businesses, workers, states and localities." ( The Washington Times , 4/9/20)

• The Announcement Is An Effort To Provide Additional Assistance, To Support The Economy, Including Bolstering The PPP By Supplying Liquidity To Financial Institutions Providing The Loans To Small Businesses. ." "Meanwhile, the Federal Reserve announced Thursday that it would take additional action to provide up to $2.3 trillion in emergency loans to support the economy, including bolstering the PPP by supplying liquidity to financial institutions providing the loans to small businesses." ( CBS News , 4/9/20)

 

 

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