By Clint Thompson
The Paycheck Protection Program (PPP), an integral part of the $2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act, that will aid small businesses recover amid the ongoing coronavirus pandemic, may not have sufficient funds to support the $350 billion allocated for the program.
One United States Congressman insists, though, that additional funds will be ready if needed.
“There’s going to be a Phase 4 (coronavirus aid package). I am more certain now that there is going to be a phase 4,” said Buddy Carter (R-Ga.), who represents Georgia’s 1st District in the House of Representatives. “The short answer is, if we need more money, we’re going to allocate more money.”
The program was designed to prevent workers from being laid off and small businesses from going out of business during a global pandemic that has halted the world’s economy. Those farmers or businesses, who qualify for the program, need to apply as soon as possible.
“We intentionally made it somewhat ‘loose’ if you will, somewhat loose in that we wanted the agencies to be able to get this money out as quickly as possible. Therefore, we left a lot of the rules and regulations up to the agencies. There’s been some bumps in the road and that’s to be expected. But we intentionally did that because the message we sent to the agencies was, you need to get this money out as soon as possible,” Carter said. “We’re not going to burden you with rules and regulations and then ask you to get out as quickly as possible.”
Carter said small businesses make up 99% of the businesses in America.
“What we wanted to do was make sure we maintained the employee-employer relationship. That’s very important, particularly for our farmers, particularly for our small businesses. You’ll be able to get up to two and a half times your average monthly payroll,” Carter said. “That is very important because, again, we want you to maintain that relationship with your employee.
“We don’t want to hear about people being separated from their businesses. That’s vitally important.”
He emphasized that the applicant can be forgiven, if 75% is used for payroll,
“Therefore, this PPP loan actually turns into a grant. That is very important because we wanted to make sure we get the relief out there,” Carter said.