New reports say that the $350 billion in funding for the federal government’s small-business relief program has gone dry, which is bad news for hundreds of thousands of businesses who are now left without the necessary funds to survive the shutdown from the coronavirus pandemic.
Whether or not to replenish the program has been a point of contentious disagreement for Republicans and Democrats, which was created in order to help businesses survive this crazy and unprecedented time in our nation’s history.
The main point of the program was to ensure these businesses had the money necessary to keep their employees paid, but with the coffers empty, one has to wonder how many more folks are about to find themselves unemployed.
Here’s more from The Washington Examiner:
“The millions of men and women who work at America’s small businesses and their families are battling a health crisis while also facing an economic crisis unless Congress authorizes additional funds for this program,” said Consumer Bankers Association CEO Richard Hunt.Trending:
According to the Senate Committee on Small Business and Entrepreneurship, the program was in such high demand that it was burning through more than $3.5 billion every hour that loans were processed in the past few days.
The Paycheck Protection Program was created to help small businesses by providing them with $350 billion on loans, all of which were part of the obscenely large $2.4 trillion CARES Act package that Trump signed into law last month.
If companies are able to keep all of their employees on the payroll for eight weeks and pay all of their bills, the Small Business Administration will then forgive the loans.
Republicans in Congress have stated the reason the program has not received further funding is because Democrats now want to restructure it so that community-based lenders will have funds set aside for them, which the GOP says is “unworkable.”