Businesses Press Congress to Replenish Tapped Out Loan Program

A coalition of more than 200 trade groups urged Congress to quickly authorize more money for an emergency loan program established to help keep small businesses afloat.

The Small Business Administration announced Thursday that it is no longer accepting applications for the Paycheck Protection Program due to a lack of funding. The $349 billion program offers government-backed loans that will be forgiven if businesses use the money to cover salaries, rent, and other approved expenses during the coronavirus pandemic.

• The U.S. Chamber of Commerce, National Federation of Independent Businesses, and other groups—in a letter obtained by Bloomberg Tax—asked congressional leaders to act quickly to add more money to the program.
• “PPP loans are providing a vital source of liquidity to more than a million individually and family-owned businesses whose operations have been curtailed or shut-down by stay-home orders and other government actions taken in response to the virus,” the groups wrote in the letter, which was sent before funding ran out.
• Treasury Secretary Steven Mnuchin has been in negotiations with Democratic leadership about approving more aid during the pandemic. Congressional Democrats want additional funding for states and hospitals in return for approving additional funds for the small business program.