Paycheck Protection Program

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Several lawmakers have reportedly benefited from the Paycheck Protection Program—the nearly $500 billion package that provided relief for small businesses amid the coronavirus pandemic.

Politico reported that a group of four lawmakers—both Democrats and Republicans—have acknowledged being associated with companies that have received PPP loans. The businesses, according to Politico, are either run by the lawmakers’ families, or have their spouses in senior positions.

Don’t think of that number as ā€œbigā€ or ā€œbold.ā€ Just think of it as the appropriate dosage for a once-in-a-century economic affliction.

Last week, House Democrats unveiled their latest pandemic-relief package. The bill combines aid for families, a bailout for struggling cities and states, and additional funds for testing, tracing, and hospitals. The price tag is about $3 trillion—and it comes just weeks after the president signed an economic-relief package worth about $2 trillion.

WASHINGTON (AP) — Some small businesses that obtained a highly-coveted government loan say they won’t be able to use it to bring all their laid-off workers back, even though that is what the program was designed to do.

The Paycheck Protection Program promises a business owner loan forgiveness if they retain or rehire all the workers they had in late February. But owners say the equation isn’t so simple, in part because of current economic conditions and partly due to the terms of the loans.

With program out of money, backlash prompts executives at Shake Shack to return $10 million loan.

The federal government gave national hotel and restaurant chains millions of dollars in grants before the $349 billion program ran out of money Thursday, leading to a backlash that prompted one company to give the money back and a Republican senator to say that ā€œmillions of dollars are being wasted.ā€

The Washington Post published a blisteringly biased assessment of the partisan battle over funding for the Small Business Administration’s Paycheck Protection Program (PPP) that is currently underway on Capitol Hill. Right on cue, WaPo did damage control for Democrats in both chambers, who have spent the last two weeks blocking additional funding for PPP, even as the program completely exhausted the original funds.

Shake Shack plans to return a $10 million loan it received under an emergency small business rescue program, amid a growing backlash against big businesses that got the money before $350 billion in funding lapsed last week.

The burger chain was just one of several large restaurant operators and publicly traded companies that secured tens of millions of dollars in "Paycheck Protection Program" loans before the Trump administration announced Thursday that the funding was exhausted because of the high demand.

The $10 million Paycheck Protection Program loan that Shake Shack is giving back cannot be used by the government to fund new loans to small businesses because of the way the program was structured.

The $349 billion Paycheck Protection Program ran out of funds last week, locking out small businesses that were unable to secure access to the emergency lending program that is being run by the federal government’s Small Business Administration.

Shake Shack Inc.’s top executives are calling for improvements to the tangled process of applying for a loan from the Paycheck Protection Program that is meant to provide a lifeline to restaurants hit hard by the COVID-19 outbreak.

The PPP is part of the $2.2 trillion CARES Act.

The burger chain SHAK, +5.26% announced early Monday that it is returning the $10 million loan it was granted after it secured funding on Friday. The company decided to apply for the loan in the first place after trying to make sense of the rules.

Bill would add funding for hospitals and testing and about $300 billion to restart small-business loan program.

The Trump administration and congressional leaders closed in Sunday on an approximately $470 billion deal to renew funding for a small-business loan program that ran out of money under crushing demand during the coronavirus pandemic, aiming to pass the agreement into law within days.