More than 38,000 small businesses across Ohio have received forgivable loans from the federal government under the Paycheck Protection Program.
The program was included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed on March 27 and signed into law by President Donald Trump. A total of $349 billion was set aside for the program, which is intended to help small businesses keep their workers on payroll during the coronavirus pandemic.
A report released Monday by the Small Business Administration (SBA) notes that 38,016 Ohio businesses have received a loan under the Paycheck Protection Program. In total, small businesses across the state have received more than $10 billion in loans.
According to the SBA, loans will be forgiven if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
The program, however, blew threw the $349 billion in funding in a little more than two weeks and was officially depleted of funds as of Thursday morning. A notice on the SBA website states that it is “currently unable to accept new applications for the Paycheck Protection Program based on available appropriations funding.”
Republicans attempted to pass a $250 billion replenishment fund, but the motion was blocked by Senate Democrats who demanded more financial aid for hospitals and states.
Treasury Secretary Steve Mnuchin said he is in talks with Democrats about an agreement that would immediately increase funding for the program, CNN reported.
“Democrats have spent days blocking emergency funding for Americans’ paychecks and today, the money for the Paycheck Protection Program completely runs out. The cost of Schumer and Pelosi’s obstruction will be pink slips and shuttered businesses,” House Minority Leader Kevin McCarthy (R-CA-23) said on Twitter.
Democrats have spent days blocking emergency funding for Americans’ paychecks, and today, the money for the Paycheck Protection Program completely runs out.
The cost of Schumer and Pelosi's obstruction will be pink slips and shuttered businesses.
— Kevin McCarthy (@GOPLeader) April 16, 2020
President Donald Trump slammed Democrats on Twitter Thursday afternoon, saying they are “playing politics” with the popular program.
“Democrats are blocking additional funding for the popular Paycheck Protection Program. They are killing American small businesses. Stop playing politics Dems! Support refilling PPP now – it is out of funds,” he said.
Democrats are blocking additional funding for the popular Paycheck Protection Program. They are killing American small businesses. Stop playing politics Dems! Support Refilling PPP NOW – it is out of funds!
— Donald J. Trump (@realDonaldTrump) April 16, 2020
As of Monday, the SBA had issued 1.03 million loans nationally to small businesses under the program. The overall average loan size is $239,152, the SBA’s report says. A little more than 70 percent of loans issued were $150,000 and under.
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Anthony Gockowski is managing editor of The Minnesota Sun and The Ohio Star. Follow Anthony on Twitter. Email tips to [email protected].
