“It is unfortunate that partisanship by congressional Democrats is holding up new funds for PPP, putting the livelihoods of millions of Americans at risk,” Chairman Rubio wrote. “During this unintended “pause” in the PPP program, I ask that you establish clear procedures and guidance.”
The full text of the letter is below.
Dear Secretary Mnuchin and Administrator Carranza:
The successful operation of the Paycheck Protection Program (PPP) by the Department of Treasury (Treasury) and the Small Business Administration (SBA) has saved millions of jobs and hundreds of thousands of small businesses from bankruptcy. As our nation continues to endure economically painful public health restrictions and prepares to partially re-open, the task of helping support American small businesses, which are the backbone of our economy, is more urgent than ever.
It is unfortunate that partisanship by congressional Democrats is holding up new funds for PPP, putting the livelihoods of millions of Americans at risk. I am confident, however, that the American people will not tolerate this inexcusable Washington charade and Congress will agree to increased funding for PPP in the near future.
Once this partisan game is over, the serious work of saving jobs and small businesses can resume. Though funding for the authorization of PPP loans has been exhausted, the funding of your agencies’ operating budgets in the CARES Act and other FY 2020 appropriations legislation has not yet been depleted, and should be used to continue to build capacity for PPP given its forthcoming increase in funds. During this unintended “pause” in the PPP program, I ask that you establish clear procedures and guidance in the following areas:
- On-ramp new lenders. Recent communication from the SBA indicates that new lenders will not be approved during the lapse in funding. I urge that you reverse this decision. The most effective way to increase small businesses’ access to critical PPP payroll support is to increase the number of participating lenders, so that banks, credit unions, and “fintech” companies that small businesses have existing relationships with can provide them the financial support that they need.
The countless hours of work small businesses, lenders, and your staffs have completed in the last two weeks are the foundation of this program. You have my gratitude and the gratitude of millions of Americans. Now is the time to prepare for the next phase of America's small business recovery.