Conaway: Democrats' Demands for "Ultra-Liberal" Policies Stalls Small Business Loan Program

WASHINGTON, DC — The Payroll Protection Program that was quickly enacted by congress and the president 10 days ago is out of money. Congressman Mike Conaway (R-Midland) wants to replenish the program with more cash. The program coffers went dry overnight and the White House has requested from Congress an additional $250 billion to keep the program alive.

The PPP loan is offered to businesses with less than 500 employees per location to allow companies experiencing reduced revenues or no revenue at all to continue to keep their employees paid. As of Wednesday evening, the government reported that 1.4 million loans had been approved with a cumulative loan value of $349 billion. Conaway said 88,000 Texas businesses were approved for a PPP loan so far. Conaway stated the program has saved 15 million jobs in the U.S. This amounts to $249,286 average loan amount and $23,267 per job saved.

The PPP program loaned eligible businesses that applied 2.5 times the recent monthly payroll. The portion of the proceeds that was spent on payroll, rent and utilities will be forgiven, according to the program rules.

Senate Minority Leader Chuck Schumer (D-NY) demandeded that legislation be attached to the funding request that will pay $25,000 per person annually in hazard pay if that worker is forced to remain on the job during the pandemic. The pay is meant for workers such as doctors, nurses, truck drivers, custodians and grocery store workers.

Other demands from the Democrats include the ability for community organizers to originate the loans, giving access to the money to "not just those with longer-term relationships to banks," Axios quoted an unnamed Democrat. Democrats also want more money for hospitals and food stamps (SNAP), Axios reported.

For Conaway, the Democrat demands are non-starters. "House Democrats are demanding their wish list of unrelated, ultra-liberal policies be included. Our small businesses don’t have time for these political games right now. it’s urgent that Congress comes together and pass additional PPP funding without delay," he said. "However, we learned today that all funding for PPP has been exhausted, and no new loans will be offered unless Congress steps up an authorizes additional funds."