Tag: Paycheck Protection Program

More than half of emergency small-business funds went to larger businesses, new data shows

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The Trump administration has emphasized PPP loans to small firms, but most of the $522 billion went to a tiny slice of borrowers

More than half of the money from the Treasury Department’s coronavirus emergency fund for small businesses went to just 5 percent of the recipients, according to data on more than 5 million loans that was released by the government Tuesday evening in response to a Freedom of Information Act request and lawsuit.

According to data on the government’s Paycheck Protection Program (PPP), about 600 mostly larger companies, including dozens of national chains, received the maximum amount allowed under the program of $10 million.

Officials from the Treasury Department and the Small Business Administration (SBA) have argued the program primarily benefited smaller businesses because a vast majority of the loans ― more than 87 percent ― were for less than $150,000, as of August. But the new data shows more than half of the $522 billion in the same time frame went to bigger businesses, and only 28 percent of the money was distributed in amounts less than $150,000. Continue reading.

McConnell says next COVID-19 relief bill will include stimulus checks

The Hill logoSenate Majority Leader Mitch McConnell (R-Ky.) said Tuesday that Republicans want to include a second round of stimulus checks and Paycheck Protection Program (PPP) funding as part of their forthcoming coronavirus proposal.

“Speaking of building on what worked in the CARES Act, we want another round of direct payments, direct payments to help American families keep driving our national comeback,” McConnell said from the Senate floor.

The March $2.2 trillion coronavirus package included a one-time $1,200 payment for Americans who make up to $75,000 per year. The amount of the direct payment was scaled down until it hit an income level of $99,000 per year where it was phased out altogether. Continue reading.

The airline bailout loophole: Three companies received $338 million in relief money for workers — and laid workers off anyway

AlterNet logoThree airline industry companies slated to receive $338 million in public money designed to preserve jobs in the hard-hit industry have laid off thousands of workers anyway, according to Treasury disclosure filings and public layoff data.

The largest company, Gate Gourmet, is a global preparer of airline meals and part of a Swiss conglomerate owned by the private equity firm of wealthy Malaysian businessman Richard Ong. Gate Gourmet is scheduled to get $171 million from the federal program to bail out the airline industry even after it reported laying off thousands of workers at airports in half a dozen states, including California, Georgia, New York and Illinois, in recent months, according to public filings. The exact number of workers who lost their jobs is not clear.

“These grants are meant to save jobs and only to save jobs,” said Rep. Katie Porter, D-CA, who has supported the aid program for aviation workers. Every payment Treasury makes “despite clear indications that the recipient company is firing workers or cutting hours is an abuse of the program and taxpayer money.” Continue reading.

Trump-connected lobbyists reap windfall in federal virus aid

WASHINGTON — Forty lobbyists with ties to President Donald Trump helped clients secure more than $10 billion in federal coronavirus aid, among them five former administration officials whose work potentially violates Trump’s own ethics policy, according to a report.

The lobbyists identified Monday by the watchdog group Public Citizen either worked in the Trump executive branch, served on his campaign, were part of the committee that raised money for inaugural festivities or were part of his presidential transition. Many are donors to Trump’s campaigns, and some are prolific fundraisers for his reelection.

They include Brian Ballard, who served on the transition, is the finance chair for the Republican National Committee and has bundled more than $1 million for Trump’s fundraising committees. He was hired in March by Laundrylux, a supplier of commercial laundry machines, after the Department of Homeland Security issued guidance that didn’t include laundromats as essential businesses that could stay open during the lockdown. A week later, the administration issued new guidance adding laundromats to the list. Continue reading.

Minnesota employers got $10.2 billion in emergency pandemic aid

132 employers in Minnesota, from private schools and law firms to restaurants, received at least $5 million.

From car dealers to construction companies, Minnesota employers hauled in $10.2 billion through the popular Paycheck Protection Program (PPP), ranking the state No. 15 in the U.S., according to data released Monday by the U.S. Small Business Administration.

The program, which is credited with lowering unemployment this spring, helped employers bring back more than 51 million jobs in the U.S. at a time when the economy was crashing. But many employers have been critical of the program, especially retailers and restaurant owners, who say the government essentially pressured them into rehiring furloughed workers at a time when they were still shut down and unable to generate much if any revenue.

Congress has now agreed to extend the program, which was due to expire on June 30, until Aug. 8 to allow business owners a chance to apply for more than $130 billion in remaining funds. Altogether, 4.9 million employers have received a total of $521 billion in relief through the program.

The loans are forgivable as long as employers spend at least 60% of the funds on payroll, down from 75% in the original bill. The formula was changed through bipartisan legislation co-sponsored by U.S. Rep. Dean Phillips, D-Minn. Continue reading.

Appreciative of Rep. Phillips’ work

To the editor:

It seems so long ago and yet just yesterday. Friday, March 13, kicked off an economic crisis that’s impacted nearly everyone in Minnesota and across the country.

States started imposing business restrictions and stay-at-home orders to slow the Covid-19 outbreak. The coronavirus has been brutal and deadly across all 50 states. That’s why I am thankful that Rep. Dean Phillips understands the situation facing small businesses in struggling to stay afloat and re-open in the face of adversity.

Thanks to Rep. Phillips’ leadership and authorship, the Paycheck Protection Program Flexibility Act passed Congress last week. Continue reading.

House passes bill to grant flexibility for small business aid program

The Hill logoThe House on Thursday passed bipartisan legislation to provide struggling small businesses with more flexibility while using loans provided through the Paycheck Protection Program, in the latest effort by lawmakers to help limit the economic impact of the coronavirus pandemic.

The bill passed easily by a vote of 417-1.

The legislation, authored by Reps. Dean Phillips (D-Minn.) and Chip Roy (R-Texas), expands the terms of the loans from the Paycheck Protection Program, which was created by the $2.2 trillion coronavirus relief package that Congress and the Trump administration enacted in late March.

But lawmakers say that additional changes to the program are needed following complaints from small businesses that they’re not able to take advantage of the loans under the current terms. Restaurants and hair salons, for instance, largely still face coronavirus-imposed safety restrictions and aren’t in a position to rehire all their employees in the time currently required to qualify for loan forgiveness. Continue reading.

Reps. Phillips, Roy announce coalition of support behind the Paycheck Protection Flexibility Act

WASHINGTON, D.C. —Reps. Dean Phillips (D-MN) and Chip Roy (R-TX) have released a diverse list of national and regional organizations supporting the passage of the Paycheck Protection Flexibility Act (PPFA). This bill will solve problems with the Paycheck Protection Program (PPP), a critical source of aid for small businesses during the coronavirus epidemic that has come under fire from critics in both parties.

Representative Dean Phillips:

“Representation begins with listening, and I am hearing from too many Minnesota small business owners who have received PPP loans but are afraid to use the money because of the inflexible, one size fits all rules – and others who are not applying for aid at all out of fear and confusion. It won’t matter how much money we appropriate if the distribution mechanisms are broken. Congress now has an opportunity to fix what’s broken and make this important relief program more accessible and useable to the small businesses that need it the most. I am encouraged by the bipartisan cooperation of my colleagues in the House and Senate, and look forward to working with them to push these reforms over the finish line without delay. Every day counts, and time cannot be wasted.” Continue reading “Reps. Phillips, Roy announce coalition of support behind the Paycheck Protection Flexibility Act”

Congressman Phillips: Critical Small Business Developments

It’s a rainy and unconventional Memorial Day Weekend, so I thought I’d check in with some good news. I just got word that we’re going to be voting on TWO of my bipartisan small business bills in the House on Wednesday. From the beginning of the COVID-19 pandemic, it has been clear to me that we need to do more to support our small businesses as they weather this economic storm. The relief programs that were hastily enacted back in March simply aren’t working as intended – and to make matters worse, there’s no accountability or transparency over how the Small Business Administration is spending that relief money (your tax dollars). Here’s how I have been working to fix that:

  • Representation begins with listening, so I’ve been talking with countless small business owners in Minnesota and around the nation about their experiences accessing relief. Their feedback has driven every step that follows…
  • Public advocacy builds support, so I petitioned Treasury Secretary Steve Mnuchin and the House Small Business Committee to fix our small business relief programs
  • Bipartisan collaboration and action is what makes good ideas viable, so I teamed up with Rep. Chip Roy (R-TX) to write the Paycheck Protection Program Flexibility Act, which fixes the problems we’re hearing about from small businesses once and for all
  • Voting turns policy ideas into law, so I went to bat for our small businesses and successfully secured a vote on TWO important, bipartisan reforms, the Paycheck Protection Program Flexibility Act and the TRUTH Act

Continue reading “Congressman Phillips: Critical Small Business Developments”

Representatives Phillips, Roy introduce bipartisan fix to Paycheck Protection Program

WASHINGTON, DC — On Monday, Rep. Dean Phillips (D-MN) and Rep. Chip Roy (R-TX) announced the introduction of the bipartisan Paycheck Protection Flexibility Act, which will make urgently needed changes to the Paycheck Protection Program (PPP), a vital initiative for small businesses struggling in the wake of the coronavirus epidemic.

Rep. Dean Phillips:

“We must redesign the Paycheck Protection Program (PPP) to make it accessible to everyone, from food trucks, to four-star restaurants, to your favorite music venue. While the PPP has helped millions of small businesses keep their lights on, millions more remain on the outside looking in. It won’t matter how much money we appropriate if the system by which it’s distributed is inaccessible to those who need it the most. As an entrepreneur and small business owner myself, I understand the challenges facing businesses struggling to survive this crisis. These common-sense solutions will provide the flexibility necessary to weather the storm and prepare for uncertain times ahead. I am pleased to work with Congressman Roy on a bipartisan solution supporting small businesses; the backbone of the U.S. economy.” Continue reading “Representatives Phillips, Roy introduce bipartisan fix to Paycheck Protection Program”