WASHINGTON – Today, Republicans on the Select Subcommittee on the Coronavirus Crisis released a report finding the Paycheck Protection Program (PPP) to be a resounding success in protecting over 50 million jobs across the country during the COVID-19 pandemic.
In the early weeks of the coronavirus crisis, much of the country shut down to limit the spread of the deadly virus and prevent hospitals from being overrun, effectively closing essential and non-essential sectors of the economy. As a result, many small businesses faced bankruptcy and the country faced a growing economic crisis. Republicans in Congress and the Trump Administration designed the PPP to protect jobs and America’s economy, prioritizing rapid distribution of funds to small businesses to keep employees on payroll while shutdown orders were in effect and until the economy was fully restored.
“President Trump and his administration worked day and night to ensure the Paycheck Protection Program worked as intended to protect Americans’ jobs and keep our economy afloat during the pandemic,” said Republican Whip and Select Subcommittee on the Coronavirus Crisis Ranking Member Steve Scalise. “Their speed and decisive action were critical to the program’s success, protecting millions of Americans’ jobs and providing certainty for families across the U.S. during a tumultuous time. Democrats should end their partisan investigation of this successful program and instead work with Republicans to extend it so more small businesses can keep their workers employed and paid.”
Key Findings from the Report:
- The Trump Administration’s fast and efficient work with financial institutions across the country enabled the PPP to support more than 51 million jobs across the country.
- Small Business Administration (SBA) and Department of Treasury officials, and their counterparts at financial institutions, worked around the clock to stand up and execute the PPP. Technical glitches with SBA’s E-Tran portal, which was receiving an unprecedented volume of loan applications, was resolved within a matter of days. SBA also provided clarifying guidance on certain aspects of the program to provide more information to applicants, lenders, and Congress. Their efforts may have prevented an apocalyptic scenario for American small businesses.
- SBA and our nation’s banks worked tirelessly to provide over $342 billion in loans in 14 days. Behind the scenes, SBA and Treasury worked together to quickly get funds to more than 84 percent of the country’s small businesses, with minimal fraud.
- Additional legislation increased the total lending authority in the PPP to $659 billion, an increase of $310 billion over the previous authorized level. It set aside $30 billion for underserved communities.
- The Trump Administration has taken action to help those hardest hit by the pandemic, especially minority communities. Around $117 billion in loans supporting 13 million jobs were provided to small businesses in economically distressed areas. Additionally, nearly $80 billion in loans supporting 12 million jobs were provided to rural communities.
Click HERE to view the report.
About PPP: PPP is a forgivable loan program designed to provide a direct incentive for small businesses to keep their workers on the payroll. Congress appropriated $659 billion for the program in the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Paycheck Protection Program and Health Care Enhancement Act. This enabled the SBA to fund more than 4.9 million PPP loans. Under the lending terms of the PPP, small businesses may have their loans forgiven if they abide by the CARES Act and SBA employee retention requirements. These incentives ensure small businesses use the funds to pay employees and prevent abuses.