The Small Business Administration announced Thursday that the $350 billion loan fund created in the CARES Act has been spent. "The SBA is currently unable to accept new applications for the Paycheck Protection Program based on available appropriations funding," SBA spokesperson Jennifer Kelly said in a statement. "Similarly, we are unable to enroll new PPP lenders at this time."
Democrats are remaining firm in their opposition to Senate Majority Leader Mitch McConnell's insistence on pushing through another $250 billion for the program. "It’s not that we don’t share the values of small businesses, we do, we have been their champions," House Speaker Nancy Pelosi told reporters Thursday. "But in order for them to succeed, people have to be well, people need to be safe and we need to have state and local [funding]."
Democrats see leverage here they can use to get other critical funding needs like more money to hospitals and cash-strapped state and local government. They also want to make sure that this small business funding goes to underbanked businesses and community lenders. Pelosi and Democratic leader Sen. Chuck Schumer are talking with Treasury Secretary Steven Mnuchin again on Thursday; according to a Democratic source who spoke with Politico about a call Trump had with senators, "he wants to work with Democrats to get a deal on the small business funds."
Pelosi maintains that McConnell's bill cannot pass the House, and given her track record with vote counting, she can certainly be believed. McConnell is stubbornly insisting, still, that it's his way or the highway and is blocking forward motions thus far. "The question is of the Republicans, why are you ignoring your state?" Pelosi said Thursday. "We all know we want to help small business, why would you turn your backs on the hospitals who are delivering services?"
Meanwhile, where the first $350 billion went is a concern for House Democrats. Small Business Chairwoman Nydia Velazquez, a New York Democrat, says that the lack of information from the SBA "has left unanswered questions as to whether taxpayer funding is going to those the program was intended to serve. […] Before Congress allocates billions of additional dollars, the administration must show a greater commitment to transparency," she said.
It's clear that more money—a lot more money—is going to be needed for everyone: for individuals in larger, more frequent cash payments; to hospitals; to businesses large and small; to nonprofits; to state and local governments; to the Postal Service. And yes, to front-line efforts to massively ramp up testing and for the manufacture and distribution of the medical equipment that is still so desperately needed. With all that urgent need, Republicans seem content to do nothing but line up with Trump in his dangerous plan to try to force an end to the only thing that's saving us now: staying at home.
