Billy Long: Paycheck Protection Program is lifeline for businesses and employees

(From Seventh District Congressman Billy Long)

The coronavirus has upended every facet of our lives and has put many small businesses in jeopardy. The Paycheck Protection Program (PPP) was established in the CARES Act to provide much-needed relief to small business owners and workers suffering from the economic fallout.

The PPP provides 100% federally guaranteed loans that, when used for payroll, rent, and utilities over an eight week period, will be totally forgiven. 

These loans have become a critical lifeline for many small businesses and has saved an estimated 30 million jobs since its inception.

Twenty-four hours after the PPP was replenished, the Small Business Administration (SBA) had approved over 475,000 loans worth over $52 billion from more than 5,100 lenders. This is in addition to the first round of PPP loans, that offered over $340 billion in financial support for over 1.6 million small businesses. 

Treasury Secretary Mnuchin has estimated that the PPP will ultimately help half of the private workforce, which will hopefully lessen the economic blow and lead to a faster recovery. Similarly, the PPP has had a profound impact on Missouri as over 46,000 loans exceeding $7 billion in value have been approved for Missouri’s small businesses.

Twelve days before this program ran out of funds, Senate Majority Leader Mitch McConnell sounded the alarm, taking to the Senate floor to pass a clean bill that would only replenish the rapidly dwindling program without any other changes. 

Despite having offered support for the program when it passed as part of the CARES Act, Senate Democrats blocked it, insisting other partisan provisions be included. In fourteen days, the SBA approved more loans under the PPP than it had in the last fourteen years, yet Speaker Pelosi told cameras that there was “no data as to why” we should replenish the Paycheck Protection Program. Days later, the funds ran dry. 

During that time, 4.4 million Americans lost their jobs— losses that could arguably have been prevented had Democrats allowed us to replenish the PPP before it ran dry.

After two weeks of unnecessary delays, President Trump was finally able to sign the Paycheck Protection and Healthcare Enhancement Act into law, delivering $320 billion to refill the PPP. As soon as the CARES Act passed, I was on the phone nonstop for two weeks with banks and business owners explaining the program and telling them what they needed to do the minute the SBA started accepting applications. 

The ones that did their homework and prepared ahead of time were at the head of the line to have their PPP Loan funded. Now that there is more funding, businesses that missed out the on the first round are getting the help they need. 

The information I’ve collected just from businesses in my district alone demonstrates how essential the Paycheck Protection Program is, and the data confirms it.

The coronavirus ended the longest economic expansion in our history, derailing the President’s record-breaking economic achievements and plummeting our businesses into uncertainty. 

As millions of Americans struggle due to coronavirus-induced circumstances beyond their control, Congress must put partisan politics aside to stop the bleeding. The Paycheck Protection Program’s widespread impact is responsible for saving tens of millions of American jobs, and we owe it to the American people to avoid any future delays in critical relief. 

As a private citizen, President Trump created a real estate empire, and his private sector experience allowed him to create the strongest economy in our nation’s history. 

Having President Trump in the White House puts us in the best position to get back to the record-breaking economy we enjoyed months ago, and I am confident that with his help, we will bounce back stronger than ever.