The program is out of money, SBA not accepting new applications. Even former Obama SBA chief is fed up: “What I’m saying is: Number one, get the money replenished.”
The Payroll Protection Program is out of money. The SBA has stopped taking applications. Hundreds of thousands of applications that already have been submitted cannot be funded.
Tens of millions of people are out of work without the backstop of businesses getting help retaining staff. And it’s all because Nancy Pelosi and Chuck Schumer have taken the nation hostage in order to extort $250 billion in unrelated additional spending.
We covered the history in our post yesterday, Paycheck Protection Program out of money as Nancy Pelosi still demands additional unrelated spending:
A week ago, when it was clear that the $350 billion Payroll Protection Program to help business retain workers would not be sufficient given the demand, Republicans propose a clean unanimous consent authorization to add another $250 billion to the program.
That proposal, however, required unanimous consent, which Democrats in the Senate — working in coordination with House Speaker Nancy Pelosi — refused unless Republicans agreed to an additional $250 billion (bringing the total to $500 billion) of spending unrelated to the Payroll Protection Program. This was the same type of hostage taking Democrats did to delay the original $2 trillion rescue package.
Nance Pelosi thanked Senate Democrats for blocking the Senate funding vote.
Yesterday, Tuesday night, April 14, when it was clear the PPP would run out of money on Wednesday, Pelosi repeated that Democrats would not agree to clean funding unless they got some or all of the additional unrelated spending. Pelosi then went on the Late Late Show to show off her very expensive kitchen and massive refrigerator/freezers packed with expensive ice cream.
The carnage from the government-required shutdown of the private sector is real. A Bloomberg reporter summed up what she’s hearing.
“I’m having a tough night. Hearing from small business owners who didn’t get PPP and who aren’t going to make it, it’s just brutal.”
There will be no expansion of funding until next week, as Democrats continue to try to squeeze additional spending as a precondition to expanding the PPP:
The Senate adjourned on Thursday without a deal, meaning the impasse will last until at least Monday, when the chamber is next expected to convene for another pro forma session.
The breakdown comes as Democrats are pushing for the replenishment of the PPP to include additional funding for state and local hospitals and measures that ensure loans make it to women- and minority-owned businesses.
Senate Minority Leader Charles Schumer (D-N.Y.) told MSNBC on Friday morning that party leaders had “constructive talks” with the Trump administration and would continue to negotiate through the weekend. Vice President Pence had a call with Senate Democrats scheduled for Friday afternoon.
“I don’t see a reason that we can’t come to an agreement soon,” Schumer said.
There have been some Democrat Senators who have broken ranks.
The PPP program is going to run out of funding soon – the Senate should approve add’l funding by unanimous consent ASAP. Small businesses need our help to survive during this emergency. https://t.co/kYTbjGHCXM
— Kyrsten Sinema (@kyrstensinema) April 16, 2020
Even Obama’s SBA chief is calling for clean funding:
Karen G. Mills, who led the Small Business Administration during President Barack Obama’s first term, has a message for top Capitol Hill Democrats: Refill the so-called Paycheck Protection Program’s coffers now and ask questions later….
“Congress has to act as soon as possible,” Mills told CQ Roll Call in an interview Thursday, adding that she’s spoken recently with Democratic senators and Speaker Nancy Pelosi’s office. “What I’m saying is: Number one, get the money replenished.” …
“Complexity is not our friend here,” she said. “Things that have to be implemented quickly can’t have a lot of bells and whistles, or else there will be too many unintended consequences — one of which is delay. And we don’t have time to delay.”
Pelosi can barely explain why she is doing this to small businesses for which a delay of a week could be the difference between surviving and closing forever.
Nancy Pelosi struggles, near speechless when asked to “explain to those small businesses” why she is blocking more funding for the #PaycheckProtectionProgramhttps://t.co/J74yjVtp1G pic.twitter.com/BBUsm6q2m7
— RNC Research (@RNCResearch) April 16, 2020
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