Tuesday, April 07, 2020
TKC MUST READ!!! CONGRESSMAN CLEAVER DEMANDS ACTION FROM PAYCHECK PROTECTION PROGRAM!!!
Tonight, local news warns us that Kansas City's program for very small businesses currently not accepting applications.
Here's Kansas City's top ranking elected official working to remedy the tragic situation . . .
Reps. Cleaver And Clay Call For National Loan Servicing Hotline, SBA Briefing On COVID-19 Small Business Loan Program
(Kansas City, MO) Today, United States Representatives Emanuel Cleaver, II (D-MO) and Wm. Lacy Clay (D-MO) called for the Small Business Administration (SBA) to establish a national hotline for financial institutions and borrowers seeking to access the Paycheck Protection Program (PPP), a lending program created with passage of the CARES Act last month. Cleaver and Clay also called for an immediate all-member congressional briefing from the SBA and Treasury Department to answer questions congressional offices have received regarding the newfound program.
“Small businesses in Missouri are desperately fighting to stay above water as the coronavirus pandemic has grinded our nation to a halt. Every day they’re forced to wait for these small business loans is another day they have to make the agonizing decision of whether or not to lay off a hardworking employee,” said Congressman Cleaver. “That’s why we’re calling on the SBA to provide an immediate all-member briefing so that we can get the answers our local banks and businesses are not currently receiving, as well as a national hotline that banks and small business owners can call directly for guidance. Time is of the essence, and livelihoods are at stake.”
“I’m extremely disappointed that some financial institutions only helped existing customers and apparently are not taking applications from businesses who were not customers prior to this crisis,” Congressman Clay said. “Unfortunately, the actions taken by these institutions are counter to the very spirit of the CARES Law—which is to support businesses who are in dire need. I want to make this clear to every financial institution who is participating in the SBA Forgivable Loans program, Congress expects you to treat every American small business owner the same, regardless of if they already do business with you, and regardless of their financial status.”
In the letter, the lawmakers wrote:
“The Paycheck Protection Program was established to offer a lifeline to small business by way of a highly concessionary loan program. While your agencies have worked aggressively to address some of the outstanding questions to some financial institutions, many of the smaller financial institutions and businesses within our districts seeking to leverage this program have found themselves unable to receive enough guidance to implement a loan product or access the program. As a result of this, small businesses may be forced to lay off their workforce during the coronavirus (COVID-19) pandemic—precisely the effect this provision of law sought to prevent.”
With the passage of the $2.2 trillion CARES Act last month, the administration has been working diligently to ensure American small businesses can access more than $350 billion in small business loans afforded by the legislation. While some of the larger, more prominent financial institutions have been working directly with the administration to administer the rules of the PPP, smaller financial institutions in Cleaver’s district and across the country have been left without proper guidance to dispense these loans to small businesses, leaving many small business owners anxiously awaiting these critically-needed funds.
Cleaver and Clay are calling for a national hotline to be created so that financial institutions and small businesses can get their questions about the PPP addressed in a reasonable time. As the hotline is being created, the lawmakers has asked for the SBA and Treasury to immediately brief Members of Congress about the lending program so members can relay more information to financial institutions and small businesses in their districts.
You can find Cleaver’s official letter attached.
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