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“Wow, that was faster than I thought.”
It only took two weeks for small businesses to rip through $349B in rescue funds allotted to them via the CARES act. So Treasury Secretary Mnuchin is hoping to reach a deal by today (Monday) to secure supplemental funding for the Paycheck Protection Program for small businesses.
The proposed deal includes $300B in new funding to businesses as well as $50B for disaster loans. $75B of the funds will be put aside strictly for hospitals and $25B to a federal testing program. However, additional funds for state and local governments will not be part of this package. Sorry, Pawnee Parks and Rec department.
Going through $350B faster than a stoner through a sleeve of Girl Scout Cookies... *checks calendar*...today might indicate to some that the bill was underfunded, but the glass half full crowd believes it actually shows that the program was a success. Over 1.6M loans have been approved with an average loan size of $206k.
Of course, you can’t keep everyone happy. Early on, banks, noted prima donnas, were having trouble processing all of the applications and despite being approved, not all funds have been distributed.
On top of that, an apparent $20M in loans granted to Ruth’s Chris Steak House has caused a PR sh*tstorm as a 5k employee food chain doesn’t exactly scream “small business”. And let’s not forget about what hedge funds are trying to pull...
Let’s get this bread
Not so fast. While both parties in the House and Senate are in favor of the funding, it once again comes down to the nitty gritty. If it were up to Mnuchin, the deal would be approved by the House today, get through the Senate tomorrow, and be ready for Wednesday. Or better yet, last week when funding ran dry...
The problem? Neither the House nor the Senate are “in session” at the moment. Measures can be taken to approve the bill without convening, but Rep. Thomas Massie from Kentucky threatened to force an in-person vote last week if he opposes the bill. Something tells me that wouldn’t fall in line with social distancing policies.
The bottom line...
With the initial blow from the coronavirus pandemic in the rearview, Mnuchin is already looking towards recovery. In fact, on Sunday Mnuchin predicted that the economic rebound will come in months… not years. His reasoning? Well, ya know, “vaccines” and “terrific breakthroughs.” That won’t bring back my Taylor Swift concert, Steven.
Mnuchin, Democrats Say They Are Close on Small-Business Funding Agreement [WSJ]
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