It’s beyond tragic: The loan program to aid small businesses hit by lockdowns is almost out of cash, yet Democrats still refuse to OK new funds unless their unrelated demands are met.
If small-business closures spike, costing countless workers their jobs, Americans shouldn’t forget the Dems’ cynicism.
Treasury Secretary Steve Mnuchin offered ample warning more than a week ago that the $350 billion Paycheck Protection Program would soon run dry; now the fund may be just days from collapse.Congress created the PPP in its rescue plan last month; the idea was to help small businesses that were ordered shut and seeing little income keep paying workers and creditors. Everyone agreed that was urgent, given these businesses’ economic importance and the threat of cascading collapses as the failure of some small companies pushes others under.
Yet as funds ran low, Democrats like Senate Minority Leader Chuck Schumer and House Speaker Nancy Pelosi blocked a GOP push for $250 billion to save the program. They demanded more aid at once for state and local governments, hospitals and “community-based” lenders serving minorities, women, and others.
And Pelosi’s No. 2, Rep. Steny Hoyer, said Monday the House won’t reconvene until May 4, threatening to let the money run out.
The tragedy is both sides agree on the need for the $250 billion, and Republicans are even open to the Dems’ other asks but want to wait to better assess the need.
By all rights, Congress should pass the one item both sides agree on now — i.e., the $250 billion in new small-biz funds. Senate Majority Leader Mitch McConnell says the bill would change only the number 350 in the legislation to 600.
Lawmakers could also fix the law’s unclear language and other flaws, like how much of a loan can go for non-payroll expenses and still qualify to become a grant.
But as McConnell said last week, Dems shouldn’t block vital aid that they support just because they want other things, too.
