What to know about the future of the Paycheck Protection Program
01 July 2020
The Senate last night voted to extend the application period for Paycheck Protection Program loans through August 8, just hours before it was set to expire.
Why it matters: There's still over $130 billion in PPP funds available, which could help small businesses pay overhead and keep employees on payroll. It also could help independent contractors like Uber drivers.
Why it doesn't matter: The application period can't be extended until the House passes the Senate bill and President Trump signs it into law. But, more importantly, it's unclear that there's much demand for this money.
- My understanding is that Treasury and the SBA originally calculated that there could be up to $600 billion in total demand for PPP funds, based on their payroll calculations of U.S. small businesses. So far it's approved around $520 billion in loans, not including around $38 billion that was returned or otherwise canceled, which is a pretty heady percentage.
- Remember, some small businesses — like grocers — experienced a surge in business from the pandemic, so never applied.
- Some applicants got shut out in the PPP's early days due to bank prioritization, and have since gone out of business. Plus, some major lenders like Wells Fargo stopped taking applications months ago, despite the available funds.
What's actually needed: A serious discussion about PPP 3, particularly as major states pause or scale back their economic reopening plans.
- This would be a new program available to small businesses that already received initial PPP loans but still face severe economic hardships.
- It also could be a more efficient, fairer, and more transparent process — given what's been learned over the past three months (including loan recipient data, which is expected to be released by EOD tomorrow).
The bottom line: PPP was designed as a bridge to the summer, but the other side is a much cooler season. Last night's Senate action only added a few feet of new asphalt, with miles still needed.
Transcripts show George Floyd told police "I can't breathe" over 20 times
Section2Newly released transcripts of bodycam footage from the Minneapolis Police Department show that George Floyd told officers he could not breathe more than 20 times in the moments leading up to his death.
Why it matters: Floyd's killing sparked a national wave of Black Lives Matter protests and an ongoing reckoning over systemic racism in the United States. The transcripts "offer one the most thorough and dramatic accounts" before Floyd's death, The New York Times writes.
The state of play: The transcripts were released as former officer Thomas Lane seeks to have the charges that he aided in Floyd's death thrown out in court, per the Times. He is one of four officers who have been charged.
- The filings also include a 60-page transcript of an interview with Lane. He said he "felt maybe that something was going on" when asked if he believed that Floyd was having a medical emergency at the time.
What the transcripts say:
- Floyd told the officers he was claustrophobic as they tried to get him into the squad car.
- The transcripts also show Floyd saying, "Momma, I love you. Tell my kids I love them. I'm dead."
- Former officer Derek Chauvin, who had his knee on Floyd's neck for over eight minutes, told Floyd, "Then stop talking, stop yelling, it takes a heck of a lot of oxygen to talk."
Read the transcripts via DocumentCloud.