The U.S. Small Business Administration (SBA) and the Treasury Department announced that loans aimed at mitigating the economic effects of the CCP Virus benefit 4.9 million U.S. businesses.
The Paycheck Protection Program (PPP) provides forgivable loans to smaller businesses, helping them stay active and employees keep their jobs, as the CCP Virus restricts the U.S. economy.
“The PPP is providing much-needed relief to millions of American small businesses, supporting more than 51 million jobs and over 80 percent of all small business employees, who are the drivers of our country’s economic growth,” said U.S. Treasury Secretary Steven T. Mnuchin.
These loans can be converted into entirely forgivable grants if used to pay the salaries of employees or the rental value of the facilities used to develop the business objective.
The SBA said the average loan is about $100,000, an indication that it does reach small businesses, which radiate wealth to the communities they serve.
In its July 6 report, the SBA specifies the names of beneficiary businesses, the number of jobs subsidized, and the range of loan amounts. Some companies were awarded multimillion-dollar loans.
All types of companies were receiving the contributions that the Trump administration, through a bipartisan agreement, obtained to subsidize this contingency.
Some of those who received the loans returned them, considering that they did not need them. In contrast, others were scandalized for receiving them, including Shake Shack, a publicly traded company that took $10 million, Ruth’s Chris, and AutoNation, according to CNBC.
After controversial sessions in Congress, the loan program was approved, where there was no shortage of accusations of scoring “political points” in the debate.
Matt Gaetz (R-Fla.) accused Nancy Pelosi (D-Calif.), speaker of the House, of “scoring political points” at the expense of businesses and held her responsible for the death of small businesses by delaying the replenishment of the SBA fund in an interview with Fox News on April 19.