The members of Congress, headed up by Rep. Dan Kildee (D-Mich.), will announcea billgiving $50 billion to the smallest of the nation’senterprises, which have struggled to contend with larger companies for crisis assistance through programs run federally.
Congress has providedin excess of $650 billion for the Paycheck Protection Program, devised to giveloans that can be accessed without difficulty to the enterprises that have been dealt the most difficult hardships. However, the smallest businesses in the nation have had difficulties getting the helpas there has been an intense hurry for it.
The new billlooks to fill in those cracks, bringing onstricteracceptability instructionsaiming for the smallest enterprises — locationssuch aspubs, salonsand coffee shops that “are kind of like the fabric of a community,” Kildee stated, “but don’t ever get to the front of the line no matter how quickly that line is moving.”
“It’s businesses that are outside the traditional banking sector and don’t have traditional banking relationships,” Kildee stated. “What we’re seeing is that the PPP program just doesn’t necessarily get to that cohort of the very small businesses.”
The difficultieswith the PPP were clearsoon afterthe bill containing it, the CARES Act, became law in late March.
Not even two weeks later, the $349 billion in appropriationshad essentiallyvanished, and dissentersspoke out that hundreds of companiesthat were publicly traded — businessesthat could get money in other ways — took millions of dollars that were supposed to aid small businesses. (Facing the outcry, some of those businesses have given the loans back.)
Another COVID-19 relief bill, which became law in late April, gave $310 billion more for PPP loans. In a provision of the legislation, Democrats soughtto change the program’s instructions to make sure that smaller enterprises can take part, especially those runbyracial minorities, veterans,females and other vulnerable groups.