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Replenishing to Paycheck Protection Program

Washington, DC, April 22, 2020

Tonight, I’ll be traveling up to D.C. for an important vote taking place tomorrow. This is for a bill that’ll add additional funds to the new Paycheck Protection Program.

I’ll be voting “Yes.” During the COVID-19 pandemic, this program has been a critical lifeline not just to small businesses, but countless families who rely on them for jobs. The initial round of funding, which I voted for last month in the CARES Act, was quickly depleted, which has left many small businesses on the edge of collapse. To refill that fund is the right thing to do, especially since many small businesses didn’t have time to apply before the initial round of funding ran out.

*** There are several cold realities we must face here:

🔹 $321 billion is being added to the Paycheck Protection Program in tomorrow's bill, but it will NOT be enough.

Once funding is replenished, banks will quickly start processing applications again. If you (A) operate a small business, and (B) you and your financial & tax advisers have determined that the Paycheck Protection Program is right for your situation, then you need to get in gear immediately.

These additional funds WILL run out – likely within weeks. When it does, we’re going to hear story after story about businesses who didn’t apply in time, and cries for Congress to continue funneling hundreds of billions more into this program.

But friends, there’s very little appetite for additional funding beyond this bill we’re voting on tomorrow, particularly among those of us in Congress who understand the financial implications of this. We’re $24 trillion in the hole! We already can’t afford any of this, which leads me to my second point:

🔹 Even though most of it has been necessary, the money our federal government is spending in response to the COVID-19 pandemic is massive, and is being piled right on top of our existing debt.

Now more than ever, it is CRITICAL for Congress to find ways to reduce federal spending and pay down our debt. This has been, and will continue to be, one of my top priorities in Congress. The livelihoods of our children and grandchildren are heading for RUIN if we cannot get our federal spending and national debt under control.

🔹 The bills we’ve passed to address COVID-19 are only temporary lifelines. Getting South Carolina (and other states) to the point where we can safely re-open, and getting Americans back to work is the real answer. The sooner this happens, the better for us all.

Remember though: even if somehow COVID-19 disappeared tomorrow, it’d still take several months for our economy to rebound. We have sunny days on the horizon, but it’s going to take a little time to get there.