The CARES Act included a massive new initiative, the Paycheck Protection Program, to protect workers and keep small businesses afloat with loans amid the COVID-19 pandemic. PPP launches tomorrow morning.
Tonight @GerryConnolly @RepWexton and I held an urgent call with lenders 1/
Tonight @GerryConnolly @RepWexton and I held an urgent call with lenders 1/
One lender predicted tomorrow will be "one of the craziest days in the history of modern banking."
Another told us that unclear guidance from SBA and the Treasury Department means lenders “don't understand the program.”
They are not alone in this. 2/
Another told us that unclear guidance from SBA and the Treasury Department means lenders “don't understand the program.”
They are not alone in this. 2/
Thousands of businesses and ultimately millions of Americans will depend on these loans. Those people NEED this program to work.
But we have been hearing increasingly worrying things about the launch tomorrow, which is why we did this call. 3/
But we have been hearing increasingly worrying things about the launch tomorrow, which is why we did this call. 3/
The Treasury Department and Small Business Administration have been scrambling today to release clear guidance to lenders to make this program work, but it was apparent tonight that there are still many questions which are likely to create problems. 4/
The Trump Administration seems to think tomorrow will go just fine. Secretary Mnuchin says the program will be "up and running tomorrow" and people will "get their money the same day." We hope they are right, but the message from lenders was concerning. 5/
As we said on the call, the clear intent of Congress in creating this program was to get small business owners the simplest, easiest, fastest loan they've ever gotten because they need help right away.
We urge lenders to do all they can to help small businesses in need. 6/
We urge lenders to do all they can to help small businesses in need. 6/
The Small Business Administration and Department of Treasury MUST clarify their guidelines and application process with all possible haste to be ready to support the small businesses which make up the backbone of the American economy. 7/
Without a clear application process and strong directives from the federal government, the Paycheck Protection Program launch tomorrow will descend into chaos and bedlam. That must not happen. 8/8
beyer.house.gov/news/documents…
beyer.house.gov/news/documents…
