2020: Schweikert 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, Schweikert 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]