May 07, 2020

Payment Protection Program Is A Win For Small Businesses

America’s small businesses have been at the forefront of many of the stimulus packages passed by Congress and supported by the President.

Early on, the Trump Administration sent a clear message to the Department of Treasury, Small Business Administration (SBA), and Members of Congress that we need funding to help our small businesses make it through this critical time.

Established in the CARES Act, the Paycheck Protection Program (PPP) was created to provide forgivable loans to businesses with fewer than 500 employees. This program authorized up to $349 billion for job retention and overhead expenses.

America First Policies Chair and Former Administrator of the SBA, Linda McMahon, said during an interview with Bloomberg, “I do believe the money is getting out there, and many businesses are getting the money and are very grateful to be able to keep their employees.”

Loans received through the PPP have been a lifeline to help small businesses endure closures due to COVID-19.

The highly successful PPP loans depleted the initial funding and Congress had to move to replenish the program. Unfortunately, the funding had been depleted for days before Democrats decided to put politics aside and pass the additional funding.

Since the $310 billion in the second round of funding passed, 2.2 million loans have been processed totaling more than $175 billion through 5,400 participating lenders.

According to SBA, the number of loans provided in the second round of funding has surpassed the total number of loans from the program’s initial launch.

This program has been nothing short of historic as SBA Administrator Jovita Carranza stated the PPP has processed “more than 14 years worth of loans in less than 14 days.”

In total, the Trump Administration has provided more than half a trillion dollars in support for small businesses. These forgivable loans have touched the hearts of thousands of small business owners who were unsure if they would close for good in the wake of coronavirus.

A coffee shop called Bitty and Beaus employs 120 people with intellectual and developmental disabilities and was able to keep payroll flowing thanks to their PPP loan.

Michael Heup, an employee of Bitty and Beaus, said, “I love my job and I'm excited about going about to work. At Bitty and Beau’s we like to use the phrase ‘not broken,’ which means me and all my amazing coworkers are not broken and have lots to offer. I know the great country of the United States is not broken either.”

On April 28, the President had multiple recipients of PPP loans at the White House to share their stories on what the funding meant for their companies to stay open.

We commend the hard work of the Department of the Treasury, Small Business Administration, and others for deploying a program we have never seen before that has kept America working.

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