Rubio Admits Loan Program Not Perfect

From the Florida Phoenix: By Issac Morgan - April 17, 2020

U.S. Senator Marco Rubio and two South Florida state lawmakers held a virtual town hall meeting on Facebook Wednesday to underscore the struggles of small businesses, including layoffs, firings and keeping workers on the payroll amid the coronavirus pandemic.

Rubio, a Republican U.S. senator, said many small business owners are struggling with limited access to banks in order to receive federal funds from the Paycheck Protection Program (PPP), a loan program established by the U.S. Department of Treasury.

“It is not a perfect program, the day we passed it, we said that…we got more work to do,” Rubio said. “It’s going to help millions of businesses but it’s not going to be perfect.”

Democratic State Sen. Oscar Braynon, representing parts of Miami-Dade and Broward counties, said, “We have received so many calls and emails from small businesses, and from our gig workers, who are struggling.”

“This is a marathon, not a sprint…we don’t know the long-term ramifications of this,” Braynon said.

State Rep. Shevrin Jones, a Democrat representing part of Broward, added that “families and small businesses are searching for ways to make ends meet.” Jones hosted the video conference.

The Paycheck Protection Program was established through the CARES Act and provides funds for small business owners to “help maintain their payroll.”

The program also applies to gig economy workers, Rubio said. “That’s a huge number of people who work for themselves.”

Rubio also said it’s important to offer small businesses federal funds in the form of grants, not just loans.

“If you can help the economy at its grassroots, you help the rest of the economy…there’s a lot of ripple effect,” Rubio said. “The last thing you need on top of everything else is debt.”

According to the U.S. Department of Treasury, the Paycheck Protection Program (PPP) offers small businesses resources to maintain payroll, hire back employees who may have been laid off, and cover applicable overhead.

“This program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities,” the website says.

This story was originally published by the Florida Phoenix. For more stories from the Florida Phoenix, visit FloridaPhoenix.com.