WHEELING — It’s going to take at least $600 billion in federally-backed loans to help America’s small businesses keep their workers on the payroll during the coronavirus crisis, says U.S. Sen. Shelley Capito.
Congress already has approved $350 billion for the Paycheck Protection Program, a program established through the $2.2 trillion Cares Act passed this month. It is being administered by the U.S. Small Business Administration, and its goal is to keep small businesses afloat and paying their employees during the economic shut down.
But as about $30 billion in loans continue to be distributed from the Paycheck Protection Program each day, the U.S. Treasury Department is recommending that an additional $250 billion be appropriated to it so the money does not run out by the end of this week, according to Capito, R-West Virginia.
Information provided by Capito’s office indicates more than 59 million Americans are employed by small businesses, accounting for nearly half of America’s private workforce. There were about 696,000 loans approved in the first days of the Payroll Protection Program, with their sum equaling $175 billion.
Democrats thus far are balking on approving more money for the Paycheck Protection Program as they seek additional funding for the Families First Act, which expands Medicaid funding to assist states, local governments and hospitals during the coronavirus crisis, she said.
Negotiations are continuing in Washington.
“We want employees at small businesses to have a business to come back to…,” Capito said. “(The Paycheck Protection Program) is working in West Virginia. It’s working in the country, saving jobs and helping to keep our small businesses afloat…
“It is popular, saving jobs, and keeping people on the payroll. And it has a huge appetite. Let’s simply put more money in this, and lets wait and see how the other programs are unfolding before we start adding billions of dollars to those.”
Congress so far has allocated funds totalling about $3 trillion toward coronavirus relief.
The Cares Act accounts for about $2.2 trillion of the funding, and includes the stimulus checks being distributed to most Americans. Then there is the $104 billion for the Families First Act, and another $8.3 billion allocated for immediate measures to stop the spread of the coronavirus.
As of Tuesday afternoon, the U.S. National Debt already was approaching $24 trillion, and Capito acknowledged coronavirus spending is adding more to the total.
“It’s borrowed money for the most part, and we are concerned about it,” she said. “But this is a devastating economic event. This is a time we needed to step up and save a lot of jobs — and a lot of families, really.
“The finer points as to when we will pay this back haven’t been worked out yet.”
Capito said ultimately President Donald Trump and the nation’s governors, in conjunction with health experts, will make the decision as to when to re-open the economy. She also praised West Virginia Gov. Jim Justice for being “forward thinking,” and issuing a shelter in place directive prior to those in other states.
“We need to keep looking at the data, and listening to the experts. What we don’t want to do is reopen and have a resurgence. That is what happened in Hong Kong and other places…,” she said.
Capito suspects books will be written by those debating whether the economy should have been closed sooner, or not closed at all.
“I think closing down the economy was our only option to stop the spread of this. I mean we won’t have an economy if everybody is sick, or is afraid of getting sick,” Capito said.