Washington (CNN)Treasury Secretary Steven Mnuchin and US Small Business Administration head Jovita Carranza urged Congress on Wednesday night to provide more money for the SBA’s Paycheck Protection Program.
The new loan program was designed to help put millions of dollars directly into the hands of small business owners affected by coronavirus. But as CNN has reported, the program is expected to officially run out of funding by Wednesday evening or Thursday morning amid an impasse between Democrats and Republicans on funding it.
“We urge Congress to appropriate additional funds for the Paycheck Protection Program — a critical and overwhelmingly bipartisan program — at which point we will once again be able to process loan applications, issue loan numbers, and protect millions more paychecks,” Mnuchin and Carranza said in a statement.
“The high demand we have seen underscores the need for hardworking Americans to have access to relief as soon as possible,” they said. “We want every eligible small business to participate and get the resources they need.”
A senior Democratic aide, in reference to House Speaker Nancy Pelosi of California and Senate Minority Leader Chuck Schumer of New York, said: “Schumer and Pelosi staff spoke with Secretary Mnuchin and Treasury staff today. They agreed to continue talks tomorrow.”
Democrats have asked that any funding for the program include more money for local and state governments and hospitals. They have also requested that any additional money include a set-aside provision that would ensure vulnerable communities receive loans.
The negotiations come as the program has been beset with technical glitches and lender frustrations since its launch April 3.
The tensions stem from the need to get the funding quickly to businesses that are no longer collecting revenue due to coronavirus shutdowns while ensuring the money goes where it’s intended.
Many lenders have been slow to accept loan applications because they felt they needed more technical guidance from the Treasury Department and the Small Business Administration.
“There are bound to be problems,” Senate Majority Leader Mitch McConnell told McClatchy earlier this month. “You can’t pass a bill of this magnitude in a week and have a perfect implementation of $2.2 trillion, so sure there are going to be glitches.”
This story has been updated with details about the program’s rollout.
Mnuchin and Small Business Administration urge Congress to boost loan program funding
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