The Paycheck Protection Program (PPP), the $349 billion emergency loan program for small businesses, has had a very bumpy launch. It was intended to give extra loan capability to banks for closed small businesses to continue to pay their employees during the COVID-19 pandemic as an economic safety net. But, as the National Federation of Independent Business reports via Forbes, despite $141 billion having been approved for loan under the PPP, most businesses have yet to see the funding. What's also concerning is that while 550,000 loans have been approved, there are more than 30 million small businesses in the U.S., meaning .40 of the loan money has been approved for .02 of small businesses. Granted, some businesses may not need the money, some may not have applied yet, and some have just given up, but that's a big infusion for a small percent of the businesses. There's also the expected incompetence from the Trumpers involved:
"There are a handful of reasons for the bumpy rollout: Banks have received inadequate and confusing guidance from the federal government about how the loans should be administered; plus, banks say the Small Business Administration’s E-Tran system—the technology it uses to process loans and lending partners—has experienced crashes and delays.Congressional Dems are crafting a legislative package that will provide another infusion, but would also add more funding for health care providers, minority and women-owned businesses not served by the big banks, and states and cities, but Senate Rethugs are refusing to go along.
Surging demand for loan assistance, exacerbated by the expansion of the program today to include independent contractors and people who are self-employed, is creating widespread concern that the $349 billion allocated by the CARES Act will run out."
There were warnings early about the PPP turning into a grab bag for fraudsters. Already, corrupt con man Donald "Cheat-o" Trump is maneuvering to cripple oversight of the funds, so that cronies and supporters in red and swing states get made whole, while others sink. Another Donald Trump Corruption Production.
