By Jacob. Originally published at ValueWalk.
With Two Days Left of PPP, Congress Packing Up for Vacay With No New Coronavirus Relief Package Passed?
Q2 2020 hedge fund letters, conferences and more
Is The Congress Going On Vacation Without Passing A New New Relief Package?
WASHINGTON, D.C. – As many small businesses teeter on the brink of shutting down, Trump’s Paycheck Protection Program (PPP) is slated to expire in just two days — with no replacement in sight. While congressional leaders have signaled their support for additional small business assistance, Senate Majority Leader Mitch McConnell suggested the Senate may soon adjourn for vacation with no new coronavirus relief package passed, and no additional support for the millions of jobless Americans whose enhanced $600 unemployment benefits ran out last week.
Without enforceable changes to increase PPP’s transparency, any new iteration of the program will likely face the same issues as the current one: big businesses running away with funds they don’t need, Black-owned and other minority-owned businesses losing out on desperately-needed assistance, and rampant fraud and other abuse — all due to the program’s faulty design and implementation. As negotiations on the Hill continue to limp along, K Street firms are arguing for an even lower threshold for PPP applicant eligibility — potentially putting the program at even greater risk of misuse.
And without enhanced benefits for jobless Americans, many families with newly diminished incomes are already hurting — and are concerned with how they’ll survive.
“Time is running out for small businesses to get the relief they need to keep workers on payroll,” said Kyle Herrig, president of Accountable.US. “Senators get paid time off, premium health insurance, and a lifetime pension — all on the taxpayer’s dime. But now with American workers and business owners struggling to survive, these lawmakers are content to take a vacation without securing a deal? Congress needs to act now, not later, and pass a new coronavirus relief package that ensures funds will reach the small businesses that actually need it — not the wealthy and well-connected.”
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