OR IMMEDIATE RELEASE
Statement from Frank Knapp, Jr., co-chair of Businesses for Responsible Tax Reform (BRTR) and CEO of the South Carolina Small Business Chamber of Commerce on reports out this week showing 150 public companies received nearly $600 million in Paycheck Protection Program loans
Washington, D.C. April 24, 2020–Reports out this week showing 150 public companies received nearly $600 million in Paycheck Protection Program (PPP) loans during the first round of funding make it clear theTrump Administration must put tighter guardrails on the next round of funding–passed by Congress Thursday–or small businesses that are desperate for these loans for survival will fail. The Trump Administration is failing once again, to protect small businesses.
The Paycheck Protection Program (PPP) was meant to help small businesses weather the COVID-19 crisis. While additional funding for the PPP was provided by Congress, there was no meaningful changes to the program to ensure that the small businesses hanging on by a thread will receive this money. Failure to ensure the funds will be delivered swiftly and equitably to the Main Street small businesses that need help the most is a huge oversight that must be corrected immediately. This money should not go to large companies with access to other forms of capital that can help them weather the crisis.
Frankly, we are not surprised that this administration allowed their big business friends to benefit from a program that was not meant for them and then let them off the hook by giving them permission to return the funds without any punishment. We find no merit in threatening press releases warning companies to stay away from PPP loans. We don’t need more lip service about the notion that small businesses are the heart and soul of our country. Only true legislative and regulatory reform will address this issue and guarantee the money goes to those entrepreneurs who actually need their government to support them during this crisis
A survey fielded April 17-20 of BRTR’s small business network found 71% of the more than 500 respondents said they have less than a month of cash reserves.
Failing to get money to real small business owners will have dire consequences for the country. About half of American workers in the private sector are employed by our 30 million small businesses. More than 26 million people have landed on the jobless rolls as a result of this crisis. We need to do better for small businesses and their workers or those numbers will continue to climb and our communities will be forever changed for the worse.
About Businesses for Responsible Tax Reform Businesses for Responsible Tax Reform is a coalition of business leaders calling for policies that truly benefit America’s small business owners. We are dedicated to ensuring policy reform is fiscally responsible, creates a level playing field for all businesses, grows the economy and works for our nation’s 30 million small business owners. Learn more about us on our website and follow us on Twitter and Facebook.
To schedule an interview: Contact Conan Knoll, firstname.lastname@example.org, (831) 524-6764.