Senate Deal Fails to Fix What’s Actually Wrong with PPP
WASHINGTON, D.C. – Following news that the Senate has reached a deal to “ease restrictions on emergency [PPP] small business loans,” Accountable.US released the following statement on behalf of its president, Kyle Herrig.
“There are a lot of things wrong with the Paycheck Protection Program. The program should have been used to help struggling small businesses stay afloat. Instead, more than 100,000 small businesses have shuttered while over a billion dollars has gone to more than 600 publicly-traded companies, companies based abroad or that have outsourced US jobs and more.
“The Trump administration had enough flexibility in the program to dole out billions with virtually no transparency. Removing the few strings that were attached will not fix this fundamentally broken program. If Congress is going to make any changes, it should start by making sure that every penny of taxpayer money is accounted for and actually goes to small businesses who need it.”
While the Senate is working to ease restrictions on the program, the Wall Street Journal is reporting that Treasury Secretary Steve Mnuchin is refusing to disclose basic information on the taxpayer funds that companies are receiving.
BACKGROUND: The Trump SBA’s Paycheck Protection Program has been bungled since day one, offering red tape and rejection to struggling small business owners while rolling out the red carpet for large publicly-traded companies that have resources average shops do not. A shocking recent report estimates over 100,000 small businesses have permanently closed since the pandemic took off in March. And a recent survey found only 12 percent of Black and Latino small business owners got the PPP loans they asked for, and nearly half say they expect to close for good in the next six months. Meanwhile, well over 600 publicly-traded firms or conflicted companies – some worth more than $100 million – have walked away with over a billion and a half dollars in taxpayer money. It’s no wonder the Trump administration has shied away from transparency in this process.