Biden slams PPP, claims funds were not distributed to small businesses
The White House has credited PPP with helping the U.S. economy weather the recession
Democratic presidential candidate Joe Biden criticized a federal coronavirus relief program that targeted small businesses – known as the Paycheck Protection Program – claiming the funds never made it to the intended recipients.
Biden said during an event in Delaware on Wednesday that “tens of thousands” of small businesses are going under as a result of the pandemic, which he attributed to the fact that money, provided for under the CARES Act, didn’t make it to them.
“You have tens of thousands of them going out of business,” Biden said. “Why? Because the money didn't get to small businesses."
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Additionally, the former vice president noted there is a need to provide federal aid to businesses that have been damaged as a result of protests that have turned violent in some cases.
The paycheck program is one of the aid packages the Trump administration has credited with helping the U.S. economy weather the coronavirus-induced recession.
White House Economic Adviser Larry Kudlow told FOX Business during an interview on Wednesday that there are some targeted programs being discussed in a potential stimulus package that could be “very helpful” to the U.S. economy, including an extension of PPP.
“That is something that would be of great help. OK, the recovery may not depend on it but that’s not important,” Kudlow said. “It would help. Why not do it?”
The window for submitting an application for a PPP loan closed last month.
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About 5.2 million loans were approved through the program, according to data from the Small Business Administration, valued at around $525 billion. The average loan size was $100,729.
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FOX Business’ Hillary Vaughn contributed to this report.