Call to Action for Congress to Act
The Paycheck Protection Program (PPP) which is a $349 billion program and part of the $2.2 trillion CARES Act has grinded to a halt. The loan program, which offers forgivable loans to small businesses as long as 75% of the loan is spent on business payroll has been fully exhausted. The Small Business Administration (SBA) said that it “is unable to accept new [PPP] applications ... based on available appropriations funding.”
Even though Republican and Democrats passed the CARES Act in a bipartisan basis, they are now at a logger jam over additional funding for the PPP. Last week, Treasury Secretary Steven Mnuchin asked Congress to agree to an additional $250 billion for the program, but Senate Democrats failed to approve the program because they demanded more money for hospitals, local governments and food-stamp recipients. Adding to this political maelstrom, Democrat Governors in the swing states of Michigan, Pennsylvania and Wisconsin sent a letter to President Trump requesting that he support an additional $500 billion in state stabilization funds.
Since April 12, 2020, about 70% of approved loans were for $150,000 or less, and approximately 15% were for $150,000 - $350,000. Since the concentration of PPP loans have not been for large amounts, arguably the program has been helping small businesses and injecting them with the much needed liquidity to keep them afloat and help them maintain their workforce.
While PMG Intrinsic is cognizant that this is an election year, we are concerned of the political brinksmanship involved with the PPP. This is a program helping small businesses and incentiving them to use the loan to pay their employees. Both Republican and Democrats must listen to their better natures and pass a bipartisan injection of $250 Billion into the PPP. Jobs must not be sacrificed for a political fit of spite.