The Paycheck Safety Program—an emergency lending facility for small companies established by the $2.2 trillion CARES Act—has been troubled from the beginning, together with a chaotic launch, pc glitches and backlash over public firms that obtained loans.
Below this system, firms with fewer than 500 staff can apply for loans of as much as $10 million at 1% curiosity to be able to cowl two months of payroll and overhead bills. As long as debtors retain staff and don’t minimize wages, the federal government will forgive most or the entire loan. In the meantime, a brand new proposal by Home Democrats to exchange the PPP is gaining steam.
Listed here are 5 numbers that sum up the embattled lending program.
That’s how a lot Congress has allotted for the PPP by way of two separate rounds of funding.
That’s how lengthy it took for the primary spherical of the PPP to expire of cash. Throughout that point, the Small Enterprise Administration assured 1.6 million loans worth $342 billion. After the funds ran dry, lawmakers scrambled to place collectively a second piece of laws to replenish the PPP.
That’s how a lot has been lent out underneath the second spherical of this system as of Could 7, out of a attainable $310 billion. That implies that lower than half of the funds are left. That cash interprets to nearly 2.5 million loans with a mean dimension of $74,000.
That’s what number of unemployment claims analysts at UBS imagine the PPP prevented over a span of three weeks. “We find that at the state level, PPP loans are negatively correlated with jobless claims,” the researchers wrote. They’re additionally predicting that over the subsequent few weeks, the second spherical of the PPP has the potential to forestall one other 1.5 million claims.
That’s how a lot a proposal from Democrats within the Home of Representatives—supposed to exchange the PPP—may cost a little, as reported by the Washington Submit. The plan, spearheaded by Rep. Pramila Jayapal (D-Wash) would provide grants to pay 100% of employee salaries and advantages through the well being emergency and can be retroactive to March 1. The web value projection determine comes from an evaluation by Moody’s chief economist Mark Zandi, and was supplied to the Submit by Rep. Jayapal’s workplace.
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Lawmakers Are Bitterly Divided Over How To Get Extra Stimulus Money To Individuals (Forbes)