Top Democrats apparently have such a bad case of Trump Derangement Syndrome that they are willing to watch American small business owners suffer and possibly go under. As always, they are ready to do ANYTHING if it makes the President look bad.
Speaker of the House Nancy Pelosi masterminded the Dems’ decision to block additional funding for the Paycheck Protection Program. This is the new loan program implemented to help small businesses affected by coronavirus-related slowdowns or shutdowns.
Nearly $350 billion was set aside to fund the PPP. Companies with less than 500 workers may receive low-interest loans to cover payroll and operating costs. These loans are forgivable if the funds are used to keep paying employees laid off because of the COVID-19 pandemic.
Overwhelming Response by Struggling Small Business Owners
Steven Mnuchin, the Secretary of the Treasury has informed Senate Majority Leader Mitch McConnell that the money is going fast.
Some lenders have already reached their loan capacity. For example, even though it was only loaning money to small business companies with 50 employees or less, megabank Wells Fargo dispersed $10 billion in the PPP’s first week.
In a statement, Wells Fargo said, “Given the exceptionally high volume of requests we have already received, we will not be able to accept any additional requests for a loan through the Paycheck Protection Program.”
The company promises to provide updates “in the coming days”.
Dems Block Small Business Funding
To ensure that every small business owner has access to these sustaining funds, the Trump Administration requested an additional $250 billion in funding.
But rabid Never-Trumper Pelosi says there’s “no data” to support the need for more money, despite the unprecedented demand.
“There is no data as to why we need the rest when there are outstanding needs,” Speaker Pelosi said. She also claimed the emergency funding bill was merely a “stunt.”
Along with Chuck Schumer, the Senate Minority Leader, Pelosi moved to block the bill, saying, “When the secretary called this morning to ask for the additional funds, we were like, we want to make sure that the program is administered in a way that does not solidify inequality in how people have access to capital.”
Looking for Credit, Not Practical Solutions
But Pelosi obviously DID believe there was data showing the need for more money. She later told Anderson Cooper that the PPP “really needs money right away, we know that, because of the demand”.
Pelosi also said, “the $350 billion for the Paycheck Protection Program (PPP) included in the last round of coronavirus relief is insufficient to meet the demand.”
What Pelosi and the rest of the Democrats want is to get credit for their own bill. They want funds set aside earmarked for “community-based financial institutions that serve farmers, family, women, minority and veteran-owned small businesses and nonprofits in rural, tribal, suburban and urban communities across our country”.
But there’s a problem with the Democrats’ version. The strict requirements needlessly complicate the streamlined, easy-access program with red tape and too much government oversight.
And while the Democrats balk at an additional $250 billion, their version has an estimated cost of $1 trillion.
But here’s the thing: the additional money won’t be of much use if the application and approval processes take too long. Every small business impacted by the coronavirus crisis needs money NOW.
The Democrats should have approved the additional funding immediately and unanimously. Now, if this legislative logjam continues, there will be gaps in access, and some small businesses in need will tragically fall through the cracks.