Sharks swimming with minnows. That, in a nutshell, is just one problem with the Paycheck Protection Program, the ‘forgivable loan’ program designed to help rescue small businesses.
But it’s not the only problem. America needs a small business survival program, not just a paycheck protection plan.
In a new stimulus bill, Congress just approved an additional $322 billion in PPP funds, less than a month after the CARES Act allocated $349 billion for small businesses to help them continue to pay their employees during the coronavirus pandemic. As with the first round, these new funds will run out quickly.
Fortunately, Democrats insisted $60 billion of the new funds be specifically earmarked so it can reach smaller businesses served by community financial institutions rather than big banks. But Congress needs to do more. The PPP has major flaws:
1. Big corporations can get their hands on the money.Source…