Congressman Pappas on big corporations gobbling up stimulus money intended for small businesses, “This is not a time for profiteering, especially during a time of national emergency!”
In an interview with Chris Ryan, the Representative from the First Congressional District, Chris Pappas, discussed the problems with the roll out of the $2.2 trillion CARES Act-Coronavirus Aid, Relief, Economic Security Act and how the $475 billion supplemental bill, which is currently working its way through Congress, will correct some of the shortcomings of the CARES Act. The Congressman also addressed the difficulties of reopening of the economy.
Congressman Pappas explained the reasons why there was not enough money set aside for the PPP-Payroll Protection Program in the CARES Act. In New Hampshire alone, twelve thousand businesses have accessed $2 billion, but there are many businesses that need to access this program which was intended for small businesses to have enough funds to continue paying their employees. Large corporations have managed to get much of the money which was intended for small businesses. This time smaller banks and lending institutions, which are more likely to be servicing small businesses, will be allocating the loans and grants.
Large entities like Shake Shack and Harvard University have received federal money from the stimulus bill, but the biggest recipient is a lesser known chain of hotels in Dallas, Texas. The Ashford Hospitality Trust, which is run by Monty Bennett, has received $59 million in loans from the program. Mr. Bennett and his father have each received $2 million. Congressman Pappas called this profiteering during a national emergency, and he stated that no publicly traded company should be getting money from these programs which were designed to help small businesses.
The supplemental spending which is going through Congress now will set aside more money for PPP and for the Emergency Injury Disaster Loan Advances through the Small Business Administration. $75 billion to assist hospitals and $25 billion for a national testing program.
Congressman Pappas sees four pieces which need to be in place for people to feel safe enough to “return to normal”: 1) Much more testing needs to be available; 2) More support for public health at a state and local level to do contact tracing and to isolate people who have tested positive for COVID-19; 3) More PPE-Personal Protection Equipment for all workers; and 4) a lower infection rate.
When he was asked to project where the New Hampshire economy will be six months from now, the Congressman admitted that he was not sure because there were too many variables. He believes that we are still in the middle of a public health crisis, and there still is the possibility of a resurgence of the virus. Congressman Pappas believes that this epidemic will not be controlled until we have an effective treatment and a vaccine for COVID-19. His bleak prediction is that we will not have an economy until we are out of the woods in controlling this pandemic.
