Paycheck Protection Program (PPP) proven to be a "vital lifeline" for Americans

With Republicans and Democrats deadlocked on how to proceed with another much-needed COVID stimulus, one COVID-related initiative that has proved successful and that both sides support is the Paycheck Protection Program (PPP) that was offered to small business to help them make payroll.

The program has expired earlier this year because Republicans and Democrats could not come to terms on certain issues like enhanced unemployment insurance and aid to state and municipal governments.

The U.S. Senate Committee on Small Business & Entrepreneurship which is chaired by Florida Senator Marco Rubio (R) recently held a hearing to discuss the accomplishments of PPP and its future.

Sen. Rubio’s committee was initially tasked to help frame the PPP that was part of the broader CARES Act stimulus package, which disbursed more funds than any of the other funding programs.

Rubi0, members of Congress, and leaders from the private sector who attended the meeting, all urged Congress to pass another PPP stimulus and praised the accomplishments of the initial funding package.

“In May 2020, the first jobs report after the full amount of PPP loans was disbursed, showed the biggest month for jobs gained on record since 1939—beating economists’ expectations by over 10 million jobs,” said Sen. Rubio. “To the goal of helping small businesses, more than 5.2 million small businesses and nonprofits received a PPP loan”

Rubio added that  “the U.S. Census Bureau reported that more than 70 percent of all small businesses in the entire country received PPP loan” and that the “the SBA approved nearly $350 billion in PPP loans in just two weeks.”

Former CBO director Doug Holtz-Eakin called PPP “the single most effective fiscal policy ever undertaken by the United States Government.”

Missouri Senator Josh Howley (R) said that the PPP was a “vital lifeline” for Americans in his state.

Others like Ms. Iman McFarland testified that her “PPP funds went toward bringing back five employees, rent on our warehouse, and providing health benefits for employees.

According to Senator Rubio’s Senate office, the PPP “injected over $525 billion into the U.S. economy in less than four months” in the first four months of the pandemic.

As you all can remember, when the country first shutdown and PPP began to be rationed as a result of the pandemic, the U.S. economy was at a breaking point with millions of Americans forced to file unemployment claims and nearly half of U.S. businesses have reported that they would have to permanently shutdown if they did not receive any government small busines assistance.