CARES Act (Cong. Rec., June 4, 2020)
Summary
Page S2712 of the Senate section of the Congressional Record for June 4, 2020. A speaker on the CARES Act says the Paycheck Protection Program provided 8 weeks of payroll relief for small businesses, that the original authorization of about $349 billion was quickly used up, and that an additional $310 billion of loan authority was authorized. The speaker says 4.4 million loans have been issued under the PPP program for a total of $510 billion and describes legislation with Senator Booker. Under the heading Nomination of Michael Pack, the speaker says the Senate nears a vote.
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“CARES Act (Cong. Rec., June 4, 2020).”
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S2712 CONGRESSIONAL RECORD — SENATE June 4, 2020
Cody’s short 29 years of life, with his certainly gotten the most attention. It will help us get to women-owned small
last 3 years as a police officer and his provided 8 weeks of payroll relief, plus businesses. It will help us get to vet-
several years as a member of the North other expenses, for small businesses in eran-owned small businesses. It will
Dakota National Guard—his testimony this country. It has been very, very help us get to the smaller of the small
in his life and now in his death—re- popular. In fact, the original amount of businesses. It will also help us get to
minds us to never take for granted our money that we authorized for loans— rural small businesses, but we need to
own safety and security. about $349 billion—was quickly used do more.
Say thank you to a police officer in up, and we authorized an additional That is why I have authored legisla-
honor of Cody, who I know is OK. I $310 billion of loan authority. There tion with Senator BOOKER. We have put
know that he is OK today. I hope he is have been 4.4 million loans issued out a plan on what needs to be done
with his Grandpa Pete and his Grand- under the PPP program for a total of through a discussion document, and it
ma Sue somewhere. I hope that my $510 billion. These loans were issued recognizes that we have to provide
Isaac, my son, bumps into him. We had rather quickly considering the stand- greater help for businesses in under-
a lake cabin right next door to the ing up of a new program and the vol- served communities for startup capital,
Holtes when those kids were growing ume of interest. for technical training, and for
up. So I stand with confidence that he I acknowledge the hard work of the mentorship. All that will help so that,
is OK, but I continue to pray for those Small Business Administration and its when we come out of COVID–19 and
left behind, especially his family—espe- workers, as well as of the Treasury, in when we have the next economic down-
cially his young son and beautiful wife standing up this program and getting turn, we will have the financial institu-
and mom and dad and brother and sis- the money out quickly to save many, tions and knowledge in all of our com-
ter—in that they, too, are confident many small businesses in our commu- munities to be able to take advantage
that they will be OK but that, while we nities. of the tools that we make available in
are in this valley, they are not alone. When we passed the PPP program, we a timely way.
I yield the floor. would have hoped that 8 weeks later Yesterday, we had our first oversight
The PRESIDING OFFICER. The Sen- our economy would have been in a posi- hearing with regard to COVID–19 and
ator from Maryland. tion in which small businesses, in large the tools of the Small Business Admin-
CARES ACT number, would not have needed addi- istration. That hearing was outside of
Mr. CARDIN. Madam President, as tional help or that the program’s pa- private sector witnesses. Next week, we
the ranking Democrat on the Small rameters would have been adequate. will have the Secretary of the Treasury
Business and Entrepreneurship Com- That was not the case. as well as the SBA Administrator be-
mittee of the U.S. Senate, I take this Yesterday, this Chamber acted in a fore us. What we heard from one of our
time to update my colleagues on the responsible way with legislation that witnesses yesterday, Connie Evans, of
implementation of the CARES Act. Senator RUBIO and I and others rec- the Association for Enterprise Oppor-
I think all of us know that the ommended, along with our House col- tunity, was about COVID–19. Its eco-
CARES Act contained major, new pro- leagues who had recommended this to nomic consequences are projected to
visions to help small businesses, and I our colleagues, that would give small erase decades of minority enterprise
was proud to be part of a bipartisan businesses that have existing PPP growth in underserved markets.
working group, with Senator RUBIO, loans the discretion to use those funds She continued:
Senator SHAHEEN, and Senator COL- over a 24-week period rather than an 8- To prevent this, we believe policymakers
LINS, that helped to craft three new week period, recognizing that many of must acknowledge the existing disparities in
programs to help small businesses as a these businesses could not get up to our small business ecosystem and take the
result of COVID–19. full payroll during this 8-week period. necessary steps to create equitable legisla-
We recognize the importance of small We also gave greater flexibility on the tion to ensure that vulnerable businesses
businesses to our economy, to job allocation of the funds. survive and thrive in the years ahead.
growth, to innovation, but we also rec- Even with these changes, there have I couldn’t agree more. That is why
ognize that small businesses are more been major challenges in bringing for- Senator BOOKER and I have issued our
vulnerable to an economic downturn. ward the PPP program. First and fore- discussion document that includes
They don’t have the resiliency. They most, we found—as we had, unfortu- many ways in which we can bring
don’t have the deep pockets. They nately, thought might happen—that about systematic changes to really
don’t have the liquidity that larger the underserved and underbanked com- help in the underserved communities.
companies have. If we are going to get munities would have a much more dif- We saw, tragically, 2 weeks ago or
our economy back on track, we have to ficult time in getting access to 7(a) close to 2 weeks ago, the tragic death
preserve small businesses and their loans under the PPP program. Quite in Minnesota. We have all talked about
workforces. frankly, we put language in the CARES how we are going to help to make sure
We suggested and the Congress Act so that the SBA would give special this country gives equal opportunity to
passed three new programs to help attention to the underserved and all of our citizens, including under our
small businesses—the Paycheck Pro- underbanked communities. criminal justice system. We also need
tection Program, the Economic Injury Quite frankly, the SBA did not follow to recognize that, if we are going to
Disaster Loan Grant Program, and a our direction. The SBA’s IG said that deal with the wealth gap in America,
loan forgiveness program for existing the Small Business Administration did we have to deal with entrepreneurship,
and new loans taken out under 7(a), 504, not fully align with the congressional and this is one way we can do it—by
or microloans. intent to help the underserved and building up these types of opportuni-
We recognize that all three of these rural markets. So we responded. We re- ties.
tools were important. They were not plenished the PPP funds, and we allo- Now, there is some good news in my
exclusive. They worked together. PPP cated a certain amount of those funds State of Maryland that I want to share
provides help to keep payrolls to- directly to smaller lending institu- with my colleagues. Maryland had a
gether. It buys 8 weeks of payroll. The tions, recognizing that they have very active women’s business center.
EIDL Loan Program provides working greater contact with the underserved As you know, our resource partners are
capital for small businesses. The grant communities, and it did help. critically important in helping under-
program provides immediate cash, and Now, at our request, the Treasury served and underbanked communities.
the forgiveness program allows a busi- has allocated an additional $10 billion Women-owned businesses are clearly in
ness to be able to get through these to the CDFIs, the community develop- that category. We have a very effective
dlhill on DSK120RN23PROD with SENATE
next 6 months without the burdens of ment financial institutions, that have women’s business center that is
having to pay their loans. All of that better ties to the underserved commu- headquartered in Rockville that helps
works together to keep small busi- nity. Each one of these steps helped. serve Montgomery and Prince George’s
nesses viable in our community. Allocating funds to smaller lenders and Counties and Frederick. It is doing a
Let me first talk about the Paycheck allocating funds to the CDFI will help great job on behalf of women-owned
Protection Program because that has us get to minority small businesses. It businesses.
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June 4, 2020 CONGRESSIONAL RECORD — SENATE S2713
Maryland, though, is a big State, and program for many small businesses has advantage of the $10,000. We hope that
we needed more help. So I thank the already ended. We need to provide the will be corrected.
Small Business Administration in its help as soon as possible. That is an- There is a third tool. That is loan
announcement of two additional small other reason it is important that we forgiveness for existing 7(a) and 504
business centers in the State of Mary- take up the next stimulus package dur- loans and microloans and for loans
land. One will be in Baltimore. It will ing this work period and not wait until taken out during the 6-month period
be housed at Morgan State University, businesses have to lay off their workers after the adoption of the bill through
a historic HBCU. That will provide, I and may not be able to reopen. the end of the year. This gives 6
think, tremendous help for women- The PPP was only one of three tools. months of debt relief for loans that can
owned businesses and minority women- The second tool we provided was a new really help small businesses. I would
owned businesses. We are also opening initiative under the EIDL Program, the like to report on how that is working,
up a center in Salisbury, on the East- Economic Injury Disaster Loan Pro- but I don’t have a lot of numbers on
ern Shore of Maryland—rural Mary- gram, for grants. It provides for imme- that, which leads me to the need for
land—to help women’s businesses. This diate cash, which is what businesses data. If we are going to carry out our
is critically important in dealing with need during a disaster—cash. The pro- oversight function, if we are going to
the gap in our communities. Resource posal allowed for a $10,000 grant to be be able to enact legislation going for-
partners are of critical need. made. We anticipated that grant would ward, we need to know how the pro-
So, as we applaud the work we have be made within 3 days. We put that in grams are working today, and we
done with the PPP program and as we the statute. haven’t gotten the information we
recognize we need to improve it, let’s As complimentary as I have been need.
also recognize we need to deal with about the SBA starting up the PPP Earlier I authored a letter to Sen-
making sure there is a fair opportunity ators SCHUMER and WYDEN, asking the
program, I am extremely disappointed
for all businesses to qualify. We are SBA to make that information avail-
in the manner in which the EIDL Pro-
also going to need additional help for able. Most recently, I joined Senator
gram has been handled. They did not
small businesses in addition to the RUBIO in a similar request asking the
get the money out quickly. They did
PPP initial grant. There needs to be a Small Business Administration to
not get $10,000 out; instead, the average
second round, and let me tell you why. make this information available. I in-
We thought 8 weeks would be enough grant was between $4,000 and $5,000.
And there is $10 billion still left in the troduced legislation with Senator SHA-
with the PPP program, but we know
coffers that could have gotten out to HEEN on this issue. We need to get that
that for some of the original small
small businesses that desperately need- data if we are going to do our over-
business loans that were taken out
ed the cash, and they didn’t do it in the sight.
under the PPP program that, within
timeframe Congress anticipated. This week we had the private sector
the next 2 weeks, the 8-week period
The existing loan program, which ex- witnesses; next week we have Adminis-
will expire, but we know that busi-
isted before COVID–19, where SBA trator Carranza, Administrator of the
nesses are not yet open at full capac-
issues loans during a disaster, called SBA, and Secretary Mnuchin, Sec-
ity. Restaurants cannot open at full ca-
the Economic Injury Disaster Loans, retary of the Treasury, to ask specifi-
pacity. Catering establishments cannot
provides working capital. It works with cally about these points. It will be a
open at full capacity. Health clubs can-
not open at full capacity. Entertain- PPP. PPP is not enough help for a very, very important hearing.
small business to get the working cap- In closing, let me say that we have to
ment centers cannot open at full capac-
ital and inventory they need. That is continue to work together as we have
ity. We know that museums are still
why we have the EIDL loans. The SBA in the past to help America’s small
very much hurt, so we are going to
has been very slow in getting the loans businesses. They are literally the
need additional help.
Yesterday, we heard from a small out. The numbers are extremely dis- growth engine of our economy. They
business owner whose company was appointing. are the innovators of our economy, and
helped by the PPP loan. He told us Now they have set up new rules. They they are the most vulnerable.
there will be additional need for bridge closed the window for nonagricultural The CARES Act provided incredibly
funding for small businesses experi- small businesses. Why? I have no idea. important help, but we are going to
encing unanticipated costs during the They seem to be limiting loans to have to pay additional attention to
phased-in reopening. I agree with him. $150,000, although the loan provides for help our small businesses. So let’s con-
I think we are going to have to do more a $2 million cap. Why are they doing tinue this bipartisan effort not only to
to help the small businesses in our that? help small businesses but to help our
communities. If the programs are going to work to- economy and to help our country. In
I have been working with Senator gether, they have to implement this doing that we will truly perform as we
SHAHEEN and Senator COONS and others program. Congress specifically in- should during this national emergency.
to say, on the second round, let’s try to tended COVID–19 to be a disaster cov- So I look forward to continuing to
target the relief to those companies ered by EIDL. We did that in our ear- work with my colleagues on both sides
that really need it. The first round— lier stimulus package. Well, we are dis- of the aisle to pay attention to what
get the money out quickly. We were appointed that we haven’t had greater we have already done for small busi-
very successful in doing that. There success in the EIDL Program, because nesses and give them the additional at-
was a minimal amount of underwriting we know it works so much closer with tention that they need.
requirements by the small businesses the PPP program, and it is particularly The PRESIDING OFFICER. The Sen-
or the banks. We got the money out useful for smaller small businesses and ator from Oregon.
quickly. Mr. WYDEN. Madam President, be-
those that are more vulnerable.
On the second round, we need to be fore Senator CARDIN leaves the floor, I
We had a witness yesterday, Nick Ru-
more discerning. We need to focus want to tell my colleague and friend on
dolph of Maryland Capital Enterprises,
those funds on those small businesses the Finance Committee that it has
who testified and said:
that really need it, those in the under- been a pleasure to team up with him to
The EIDL loan is a particularly impactful
served communities—the smaller of product . . . because of its low interest, long
try to deal with these challenges in
the small businesses. We heard that terms, eased credit requirements and the terms of getting the help out to small
yesterday during our oversight hear- fact that collateral is not required. In a per- business people. We know that it has
ings. Those businesses have had a dra- fect world, all approved applicants would re- been needlessly challenging, looking
matic loss of revenue. If we do that, ceive the full grant portion regardless of back at the experience. I am just glad
dlhill on DSK120RN23PROD with SENATE
the resources are there; we can help number of employees. my colleague is going to prosecute the
those small businesses survive, and we What Mr. Rudolph is saying is they case until there is justice for these
can do it in a way that will keep our limited the grant to $1,000 per worker, small businesses.
economy going. and, therefore, if you had 10 or fewer NOMINATION OF MICHAEL PACK
We need to do that immediately. We workers, the most vulnerable of small Madam President, the Senate nears a
shouldn’t wait 2 more weeks after the businesses, you were not able to take vote on the nomination of Michael
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