CHARLESTON, W.Va. — U.S. Senator Shelley Moore Capito believes the second round of funding for small businesses suffering during the COVID-19 pandemic will be enough.
The Small Business Administration (SBA) began accepting Paycheck Protection Program (PPP) applications from participating lenders on Monday morning.
There is more than $310 billion this time around for PPP after the fund ran out of $350 billion after two weeks earlier this month. The first round of funding came under a $2.2 trillion economic relief law President Trump approved in late March.
Capito (R-W.Va.) appeared on Monday’s MetroNews ‘Talkline’ and believed no one thought the $350 billion would go as fast as it did.
“I think this just shows the depth and the breadth of the economic stagnation,” she said.
“I’m hoping this covers it and we are going to monitor it. I saw comments made recently from (Steve) Mnuchin over the weekend saying he believes it should be sufficient but they will monitor and see.”
Capito noted two changes in this new funding from the previous law including directing the loans to community banks to help West Virginians and small credit unions. She also said there are provisions that a business must certify they have had damages during this period.
“There are some people that are probably are doing better because of the nature of ways we are doing business yet they are still eligible for a small business PPP loan,” Capito said.
“Under this next traunch, you have to say you have had the losses or you could be subject to a clawback.”
The SBA states the PPP is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. The SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
Capito and her colleagues on Capitol Hill go back to working in Washington on Monday.