While the economy is weak and small businesses struggle all over the US due to the coronavirus pandemic, Democrats once again let the American people down on Thursday by failing to approve an emergency funding infusion for the Paycheck Protection Program (PPP), a federal plan designed to extend loans to keep small businesses afloat and their workers getting paid during this tough time.
Senate Majority Leader Mitch McConnell was hoping to unanimously approve a $250 billion PPP replenishment to add to the original $350 billion fund and has demanded more aid for hospitals and other needs that should be included.
“Just a few days after the program opened for business, $100 billion in loans have already been committed. That is 30 percent of the total funding, spoken for in just the first few days,” said McConnell, calling the Democrats’ blockade “political maneuvering.”
“This does not have to be, nor should it be, contentious. We don’t have to divide along the usual lines so soon after we came together for the country,” added McConnell. “To my Democratic colleagues, please, do not block emergency aid you do not even oppose just because you want something more.
Democrats, however, who were represented Thursday by Maryland Senators Ben Cardin and Chris Van Hollen, said McConnell’s move was “a political stunt,” saying that that the GOP leader knew beforehand that the measure would fail, especially since his Democratic counterpart, Chuck Schumer, had released a $500 billion relief package earlier this week. In Schumer’s package, $250 billion would aid small businesses, of which half would be earmarked for those owned by minorities. The other $250 billion would go to hospitals, first responders, and those in need of food assistance.
“Yes, we need more money,” Van Hollen said, “But for goodness sakes, let’s take the opportunity to make this program work better for the very businesses it is designed to help.”
Cardin, head of the Senate Small Business Committee, noted that Democrats were “all for more funding” for PPP, but that other emergency funds, designed as grants, for small businesses had already depleted their funds and were in need of more.
“You don’t have to have a banking relationship with a commercial bank in order to get these loans. Very, very popular. Three point eight million requests have come in….representing $372 billion of loans. But here’s the problem – we’ve only authorized $7.3 billion of loans under the program,” said Cardin, adding, “That’s why we’re suggesting, if you add another $50 billion, you could authorize another $300 billion of loans.”
McConnell objected as Democrats attempted to get their proposal through the Senate Thursday.
“No one is necessarily against additional assistance,” said McConnell, adding, “Much of the rest of the money has not gone out yet. So, it’s hard to measure the effect of that and the additional need. This is the one program that was running out of money, needed assistance now, and all my proposed amendment would do, at the request of the Administration, was to simply change one number.”
Congress will obviously need to increase PPP to help the American people, but under what circumstances remains unclear, as it is obvious that Democrats are still playing games even during these pressing times.
