2020: Fitzpatrick Voted For The Paycheck Protection Program (PPP) And
Health Care Enhancement Act, Congress's Fourth Coronavirus Response
Bill, That Provided An Additional $310 Billion To The PPP. In April
2020, Fitzpatrick voted for the Paycheck Protection Program and Health
Care Enhancement Act as part of Congress's response to the Coronavirus
pandemic that would, according to Congressional Quarterly, "provide an
additional $310 billion for Paycheck Protection Program loans under the
Small Business Administration, including $60 billion for lending by
smaller financial institutions and those serving underbanked
communities. The program provides forgivable loans of up to $10 million
for businesses with 500 or fewer employees, including for payroll costs,
mortgage payments, and rent or utility payments." The vote was on a
motion to concur. The House passed the bill by a vote of 388-5 and the
bill was then signed into law by the President. [House Vote 104,
4/23/20; Congressional
Quarterly, 4/23/20;
Congressional Actions,
H.R.266]
The Bill Provided An Additional $310 Billion To The Paycheck
Protection Program, Which Provides Loans To Small Businesses To Keep
Employees On Payroll. According to Congressional Quarterly, "The
agreement increases by $310 billion the level of forgivable loans
to small businesses under the Paycheck Protection Program (PPP),
increasing the program's total loan authorization level from $349
billion to $659 billion [...] Under the program, which was
established in March by the CARES Act, the SBA guarantees 100% of
all PPP loans issued by private banks, with a maximum loan limit of
$10 million per borrower. Small businesses [...] that use loan
proceeds to cover payroll, rent, mortgage payments, and utilities
through June 30 would be eligible for loan forgiveness. The SBA
would then use appropriated funds to reimburse banks for forgiven
loans. Forgiveness is based on the employer maintaining or quickly
rehiring laid-off employees and maintaining salary levels at
comparable 2019 levels, and the SBA requires a borrower to use at
least 75% of the loan amount for payroll to be eligible for
forgiveness." [Congressional Quarterly,
4/22/20]
Because The PPP Was Criticized For Favoring Larger Small
Businesses That Have Relationships With Larger Banks, This Bill Set
Aside $60 Billion For Smaller Financial Institutions. According
to Congressional Quarterly, "One criticism of the initial roll-out
of the Paycheck Protection Program was that its 'first-come,
first-served' nature favored larger small businesses, including
subsidiaries and affiliates of large national companies, as they
typically have established relations with larger banks that already
participate in SBA lending programs and were able to process PPP
applications more quickly. While small lenders, including credit
unions, were authorized by the CARES Act to issue forgivable PPP
loans, many found that much of the program's initial funding had
been committed before they were able to begin processing
applications. To ensure that a larger pool of small businesses can
access loans under the Paycheck Protection Program, particularly
small businesses in financially underserved areas, the measure
establishes a set-aside for smaller lenders. Specifically [...]
$60 billion would be reserved for small and moderate sized
financial institutions --- with $30 billion set aside for banks and
credit unions that have between $50 billion and $10 billion in
total assets, and another $30 billion set aside for banks, credit
unions, and community financial institutions with assets below $10
billion." [Congressional Quarterly,
4/22/20]