On Thursday, the U.S. House of Representatives voted to approve another round of stimulus funding amid the COVID-19 crisis to help prop up businesses with the Paycheck Protection Program. Previously passed by a Senate voice vote, the bill passed the House by a 388-5 margin.
“As a small business owner for over 40 years, I understand employers are facing tough decisions as they prioritize the health and safety of their workforce while also trying to maintain payroll and overhead costs. This is why I have fought to increase funding for the Paycheck Protection Program,” said Congressman Rick Allen (R-GA 12). “This program was created to save jobs and help small businesses that have suffered losses due to the coronavirus outbreak. Demand for this program has been overwhelming, which is why funding ran out in a matter of weeks.”
The new bill added $321 billion to the program, with at least $60 billion guaranteed for loans made by smaller depository institutions, credit unions and community banks. The bill also provides $75 billion for health care providers for expenses and lost revenue, as well as another $25 billion to develop and give tests for COVID-19.
“Despite the unnecessary delay, I’m glad we were able to reach an agreement to provide nearly $500 billion for small businesses, hospitals and healthcare providers, as well as funding to expand testing,” added Allen. “The bill also expands eligibility for the SBA’s Economic Injury Disaster Loan program to include agricultural enterprises with less than 500 employees, which is great news for our farmers in Georgia’s 12th District.”
With the new round of funding, Georgia Senator Kelly Loeffler asked the Small Business Administration (SBA) to ensure rural small business can access the loans through the PPP program. Previous funding ran out quicker than anticipated and there are reports that larger companies dominated the approved applications – including large national chains like Shake Shack and Ruth’s Chris, both of which announced they would return their share of funding.
“America’s rural community is in desperate need of access to capital lending. Based on my conversations with rural lenders in Georgia, many banks remain unable to process and extend PPP funding because they are not currently recognized by SBA as an approved lender,” Loeffler wrote in the letter to SBA Administrator Jovita Carranza. “This leaves a great many rural businesses lacking in viable options for relief during this trying time. This issue is further compounded by geographical limitations physically keeping rural businesses from accessing other banks or lending opportunities. For rural businesses able to overcome these barriers, many banks are forced through statute or businesses policy to prioritize existing relationships, once again leaving rural businesses without viable options.”
