WASHINGTON, D.C. – Today, U.S. Senator Thom Tillis (R-NC) issued the following statement on the lapse of funding for the U.S. Small Business Administration’s (SBA) $349 billion Paycheck Protection Program (PPP), which gives forgivable loans to small businesses impacted by COVID-19. According to the SBA, there have been 23,786 approved loans in North Carolina totaling $5.72 billion as of April 13. Minority Leader Chuck Schumer has rejected attempts to unanimously pass an additional $250 billion for the PPP while members of Congress work on a more comprehensive Phase 4 bill.
“While far from perfect, the Paycheck Protection Program created under the CARES Act will be helping tens of thousands of small businesses in North Carolina get through this crisis and keep their employees on payroll,” said Senator Tillis. “Congress needs to immediately approve additional funding to keep this program running and work together to make needed improvements based on the feedback we’re getting from small businesses who have been experiencing issues with their applications or facing roadblocks from their banks.”
“Speaker Pelosi and Minority Leader Schumer are fully aware that small business owners across the nation desperately need more help, and their decision to reject a no-brainer proposal to provide that immediate help is cynical partisan politics at its worst,” Senator Tillis continued. “What makes it even more outrageous is that I know that many of my Democratic colleagues have no appetite for these kinds of political games right now and that the additional funding would be easily approved on a bipartisan basis. I will continue to work with all of my colleagues in good faith on solutions to help North Carolinians in need, and I hope Speaker Pelosi and Minority Leader Schumer start listening to their local small businesses and their fellow Democrats and come to their senses.”
BACKGROUND
The PPP was created under the CARES Act legislation supported by Senator Tillis, and was designed to help small businesses and keep their employees on payroll during the coronavirus pandemic. Congress has provided about $349 billion to support federally guaranteed SBA loans under this program. Businesses can get a loan of up to 250% of their average monthly payroll expenses – excluding compensation above a salary rate of $100,000 for any individual – up to $10 million total. The federal government will forgive loan amounts that employers spend on payroll, rent, leases, mortgage interest, and utilities.
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