President Trump: "Will Request Additional Funding from Congress When Small Business Support Funds Are Depleted"

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] On the 4th (local time), U.S. President Donald Trump announced additional funding support for small and medium-sized enterprises (SMEs) and small business owners, in addition to the $2.2 trillion (approximately 2700 trillion KRW) economic stimulus package that took effect at the end of last month to respond to the novel coronavirus infection (COVID-19).

On that day, President Trump stated on Twitter, "I will immediately ask Congress for additional funds to support small businesses under the Paycheck Protection Program loans once the allocated amount is fully exhausted."

He added, "Bank of America (BoA) and community banks are amazing!"

President Trump also tweeted, "The Paycheck Protection Program is currently underway," and said, "This program is also open to nonprofit organizations."

According to the recently announced stimulus plan, $349 billion will be allocated to new loan support for SMEs and small business owners.

Regarding this, Treasury Secretary Steven Mnuchin announced at the White House briefing of the COVID-19 task force on the 2nd that the $349 billion loan program to support SMEs and small business owners would begin on the 3rd.

Under this loan support program, businesses with fewer than 500 employees can borrow up to $10 million for two years.

However, lending institutions such as banks and credit unions have complained that unclear guidelines and the surge in loan applications may cause difficulties in processing, according to the political news outlet The Hill.

Concerns have also been raised that, as the economic impact of COVID-19 is expected to prolong, some places may not properly receive benefits due to overheated loan competition.

Currently, the U.S. Congress is discussing the fourth stimulus package following the $2.2 trillion economic stimulus bill.

Meanwhile, President Trump nominated Brian Miller, a White House counsel and advisor, as the inspector to manage and supervise the execution of the Treasury Department’s $2.2 trillion economic stimulus plan, according to reports by The Washington Post (WP) and others. Miller is a special advisor to President Trump and a member of the White House legal team, and the inspector position requires Senate confirmation.