Face it, no one in Washington wants to fix the small business loan program - Business Insider

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Opinion | Face it, no one in Washington wants to fix the small business loan program by lopezlinette

that it could not keep the money in good conscious after it had been able to tap $150 million worth of capital in the stock market the week before.

You see, that's the advantage of being a big, public company. You can tap all sorts of funding, and not just from the myriad programs the Federal Reserve has for corporates in this pandemic. You can go to your investment banker and look at all kinds of options, including issuing shares in the stock market. That's why the fact that big companies are getting PPP money is so frustrating. They have other places to go to get money and small businesses don't.

warned Washington that, because the program was operating on a first-come first-served basis, big companies with accountants and lawyers and access to their bankers would box out smaller business. That is what happened. The bill that replenishes the PPP funds is likely to pass this week. It attempts to address the problem with the program by setting aside $60 billion for credit unions, minority depository institutions, and other financial institutions that serve the underserved. Democrats got $100 billion for pubic healthBut the addendum does not change that language that allowed big companies to get money allocated for small companies.

 

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