senator Florida’s Marco Rubio, who led the pioneering Paycheck Protection Program (PPP) to help small businesses survive the coronavirus pandemic, now needs to organize more resources to help the still troubled economy Wall Street Journal (WSJ) reports.
One of the new regulations is a $ 100 billion program under the Small business management (SBA) 7a program to provide long-term, low-cost loans to small businesses. Rubio said the idea was to "help seasonal businesses whose season may have been wiped out and small businesses that are in opportunity zones or other low-income census areas".
Rubio said the program would particularly help minority-owned companies and low-income communities that could only have cash for two weeks.
He was optimistic about the chances of working with democratic lawmakers at the PPP, where he said there was more agreement than in other aspects of the forthcoming stimulus package. WSJ notes that an adjutant to Maryland Sen. Ben CardinThe top democrat in the committee agreed that the PPP aspect of the negotiations was going well.
The PPP has been a focal point of Congress negotiations as the next incentive will be eradicated. Rubio and other leaders like Sen. Susan Collins, a Maine Republican, has stated that they want to limit the focus of the loans to ensure that they reach only the smallest businesses they actually need, unlike earlier in the pandemic, when many large companies were successful in PPP loans received.
Rubio noted that the idea was different from European programs that acted as grant programs because they wanted the "fear of becoming a loan" to motivate people to keep working and keep the economy going.
But the core of his plan was to hopefully help underserved communities. He said the goal is not to make the recovery uneven by ensuring that the benefits get where they are needed. Part of the struggle, he said, was to make sure everyone knew how to access the money.
"One of the biggest obstacles we've learned from is financial know-how: knowing that these loans are available; knowing where to go; knowing what it takes to meet forgiveness standards; part support for the financial literacy that small businesses would need, ”said Rubio, according to the WSJ.