WASHINGTON, D.C. (NEXSTAR) — Starting Monday, businesses can again apply for emergency loans through the government’s Paycheck Protection Program.
And that while the money is now available, it might not be there long.
As small businesses race to apply for Paycheck Protection Program loans, some lawmakers worry the new $310 billion infusion won’t last.
“This money is not going to be enough,” said Rep. Tim Ryan (D-OH). “we’ve only dealt with about 5 percent of small businesses.”
Ryan thinks the country needs at least $1 trillion just to keep small businesses afloat.
“I think we are underestimating the gravity of the economic challenges we’re gonna have here,” he said.
The first $350 billion, approved in the CARES Act a month ago, ran out in less than two weeks.
Indiana Senator Mike Braun said it shows how badly help is needed.
“The fact that we went through it so quickly tells you how broad and how deep the issue has been with smaller businesses,” said Braun (R-IN).
Some experts, like George Washngton University economics professor Steven Hamitlon, said it’s likely Congress will again find itself be staring at a paycheck protection program run dry.
“There may still be a need for Congress to open up additional funds,” Hamilton said.
But, he says small businesses should have easier access to loans this time.
The program’s initial rollout was plagued by problems, including a lack of guidance for banks issuing the loans.
“But I think a lot of those kinks have been ironed out,” Hamilton said. “I expect the second round to go a lot more smoothly.”
Congress did close several loopholes in the new funding, so Wall Street corporations won’t be able to get money that is supposed to help the small businesses on main street.