Congressman Michael Cloud on Paycheck Protection Program

Statement on the Paycheck Protection Program and Health Care Enhancement Act

The following is a press release by District 27 Congressman Michael Cloud:

Thursday, Congress passed legislation with $310 billion in additional funding for the Paycheck Protection Program (PPP). The Small Business Administration (SBA) rolled out the program in record time to give loans to small businesses across the country. The loans can be used to offset eight weeks of payroll, rent, or utility costs, and be fully forgiven if no employees were laid off. It is a lifeline for many of our nation’s small businesses and the families that depend on them during this unprecedented time.

Less than two weeks after it started accepting applications, it ran out of funding. SBA Administrator Jovita Carranza said, “the SBA processed more than 14 years worth of loans in less than 14 days.”

Congressman Cloud was in Washington for the passage of the bill and voted yes. He said, “Many small businesses in Texas benefitted from the PPP, and thanks to the passage of this bill, many businesses stuck in limbo will now have access to the funds needed to support their employees through this economic shutdown. As of April 16th, over 134,000 loans were given out to Texas businesses, totaling more than $28 billion in funds.”

“I want small business owners across our district to know much-needed economic relief is available to deal with the burden imposed by the COVID-19 economic shutdown,” he added. “Although the experience with the program for some has not been perfect, I’m working to provide feedback from our district to address the challenges that arise. Then we can focus on doing what is necessary to reopen our economy.”

Bill summary:

$310 billion for the SBA’s successful PPP, which will allow the SBA to continue providing forgivable PPP loans to our nation’s small businesses to help cover the cost of payroll and operating expenses during this difficult time. $60 billion of this funding will be set aside for smaller financial institutions to help ensure we meet the needs of our rural communities.
$60 billion for the SBA’s economic injury disaster loans and grants, which is another key source of assistance for small businesses.
$75 billion to support the heroes on the front lines of this crisis: our hospitals and healthcare providers.
$25 billion to expand testing, which will provide information on where cases are occurring, and support continued efforts to reopen communities and reignite our record-breaking economy.

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Courtesy: District 27 Congressman Michael Cloud