Trump Keeps Failing Small Businesses, Letting Corporations Off The Hook

Trump’s failed implementation of the Paycheck Protection Program hurt small businesses. Despite Trump saying large corporations were already giving back funds they received over small businesses, most still haven’t, and Trump’s rules for the program have made it unusable for many small businesses.

Trump said large corporations that took over $1 billion in PPP funds meant for small businesses were “giving it back,” but more than 350 companies didn’t.

Reuters: “Sixty-eight companies returned $435.8 million in loans, out of a total of 424 public companies that were granted loans totaling $1.35 billion, based on a review of corporate filings by FactSquared as of May 22.”

Nearly two months into the program, the Trump administration has still not provided any transparency about recipients of large PPP loans.

CBS News: “The U.S. Small Business Administration has committed to auditing every sizable emergency loan it approves, yet nearly two months since the $660 billion Paycheck Protection Program was launched, the agency has yet to make public the recipients of taxpayer aid.”

The Trump administration fell short of employer and lawmaker demands on new PPP guidance to make it easier for small businesses to avoid debt.

Politico: “The Trump administration released long-awaited rules on how government-backed small business loans can be forgiven, but they fall far short of what employers and lawmakers are demanding for the popular program… But the forgiveness requirements align with previous SBA and Treasury guidelines and don’t offer the kind of changes that a growing chorus of businesses are seeking to make it easier for them to avoid being saddled with the debt.”

Nearly $150 billion in small business relief funds remain unallocated as business owners struggle with the Trump administration’s rules .

Reuters: “All told, the SBA says it had approved $512.2 billion in PPP loans as of May 21. That’s nearly $150 billion less than the $660 billion allocated to the program, which was designed to keep Americans on company payrolls and off unemployment assistance.”

Reuters: “Businesses were supposed to use it to retain workers, but may have been laying them off instead of tapping the money… Business owners first saw the program as a lifeline during the coronavirus crisis. They are now worried that confusing and changing rules may keep them from converting the money to a grant, meaning they will need to pay it back.”