ppp was never perfect. but thanks to the hard work of sba employees and necessary reforms made by congress, the program has helped save millions of businesses. from permanent closure. the conditions improving from the loss of the pandemic, it is vital that this committee turn to what may be the most important part of the program. the federal government's promise these loans can be forgiven and converted into the grants. already received 5.6 million loan forgiveness requests and made over 5.2 million forgiveness payments. this means that approximately 46% of all ppp loans have received payments. this statistics represent progress but they also show that there is a long way to go. unexpected debt can hinder. a path to future growth so we must examine the obstacles preventing recipients from loan forgiveness and work to -- them. working to make ppp forgiveness as simple as possible and examining solutions to maximize total loan forgiveness, especially for small dollar borrowers. i now would like to yield to th

unity provided 1500 ppp loans in the first round of the ppp lending.overall average, ppp average at $56,000 with a small percentage -- a large percentage was $100,000 or less are. our smallest was $700 and the largest loan was $1.7 million. in the complexity of this process whose challenges for small businesses who may not have the staff to perform the application process. we are pleased to see congress enact a simple fight process for this. however, pricing has grappling with the cost of processing loans and forgiveness and following the leads of their members. many credit unions have invested money to create a solution for members, the complete online application and supporting documentation for the first line -- first party members. i understand there is frustration for this have been ongoing. additional documentation for application is under review. even for small borrowers. almost 80% of our ppp loan has been forgiven it has taken on average nine days from application to fda approval. we applications have them placed under review has been taken an

and earlier, we talked about ppp banking. my comment is that our local financial institutions do a tremendous job, upon distribution of the ppp loans. they did it in a quick way, but i just want to publicly thank our lending institutions that helped businesses stay afloat and help them stay open during the covid crisis. i would also like to thank administrator guzman from the state of minnesota. his trip went very well and myself and congressman hagedorn, both members of this committee, were invited by her and her staff. i will stay that for my staff and those in the district and those in washington d.c., they have been very concerned with the lack of effort and the lack of response that administrator guzman has given to us when we requested information. i would describe it as a late, slow or no response. and that is just irresponsible. her actions speak loud and clear. her partisan actions speak loud and clear. my question, is what has the sba been like for the lenders? has it been clear? as it relates to forgiveness? mr. fi

ppp forgiveness?>> initially, it was kind of all hands on deck. probably, i mean, i have 100 employees at the bank, maybe a little less, but we had to many people that were working around the clock. weekends, trying to get those ppp applications into the small business advocate. like forgiveness face, we automated some of that, so we're only using about three, or two, people to handle the forgiveness face. it's been very efficient, and effective for us. >> and miss pain, your organization? >> it's going to sound very similar for us as well. we brought on three temporary employees to help us through the ppp forgiveness, and it's been working quite well for us. and on our platform as well. >> okay. finally, i guess,, ppp was begun getting funding out the door, when i was first going. that was a big question to employers, how are they were going to keep open, and ppp was a big help. for many of the witnesses, miss payne, mr. fischer, anyone, what are we hearing, specifically, now that the ppp program is

the ppp program so as you look ahead to the next major disaster this is not unique just to ppp.o you improve that aid but also f minimize fraud? >> i word suggest not going direct to the borrower then if they have a long history it is the way to go we have relationships of those businesses that is down the street and then to see the application on paper or virtually in the great mutual aid and also curb fraud. >> in 2019 with the record-breaking stride increasing 10 percent with that same type of growth strategy and then to get back to that what do you attribute that success in 2019? >> that successes reflecting the scale going to the next level with the digital personnel. and that we can harness that. >> are those that help back in 2019 we should try to strengthen or to bring back? >>ar i think it is the maturity of the businesses. >> and as that help? with the biden administration number of financial policies talk about increasing inflation and then to help the economy to be very beneficial. >> but at the expense of making $100 million. >> i'm talking about small businesses sp

frances: you spoke about ppp.u believe there is a need to make sure money goes to the right people? judy: there definitely needs to be greater oversight. one very disappointing thing was that the sba did not require that the institutions say whether the business was a business of color, and minority owned business, woman, or veteran. since that was not implement it, we had that requirement in the bill. we are really serving the small businesses. we have to make sure that they are served. and they do that through oversight. this is indeed collected. making sure that these small businesses are served. i believe we had success in the loan of $67,000. the smaller businesses are being given the loans that they need. nonetheless, we want more complete picture. frances: i want to ask you about the success or failure of small businesses, sometimes marginalized communities. what does it mean to an underserved community to see a small business either go ahead or drop out? judy: in my district, there are so many small busine

to his point, ppp helped us out in many ways we did not see coming. i will start by introducing myself. i'm the president of acme electric. as he mentioned, my grandfather started it in 1950. we are a union electrical contractor based out of cedar rapids. we handle residential, large, small, commercial, and industrial applications. last march, it seemed like overnight, we went from having a good amount of work to 100 places that need places to go and need paychecks. it was kind of unnerving and i will say that the benefit of getting a ppp loan and allowing us to get our entire workforce, not only retain it, but keep them gainfully employed. not have them worrying about how they will pay their mortgage, car payments, anything along those lines. it was gratifying and i was appreciative as a business leader to do that. when we went from covid then come august, it was at the flip of a switch. it was a lot of work to be done to all hands on deck. one of the largest benefits of the ppp program was allowing us to retain our workforce. it is tough to qualify.

and it's been, by all accounts, pretty much a disaster compare to with ppp where we rescued millionsdimebecause we brought the private sector into it it's not just a government effort when it comes to ppp. it was what banks and local community, lending institutions did to help get that money in the hands of businesses on main street >> so, i guess my final question would be if we've moved past the need for acute help in the pandemic but we still have a lot of pandemic effects, delta still going around, mask issues, vaccination issues, finding workers, figuring out how to stay open, how to make that transition to virtual, what that means on showing up to work or not. what would be the best way to support a vibrant, small -- new business community, small business community in the u.s. from here? >> first and foremost, it's exactly what you said. we have to beat covid. more vaccinations means a quicker end to this pandemic the more people we get vaccinated the more we can be fully reopened we need the federal government to help in some areas, helping unlock the supply chain disruptions,

it couldn't be set in stone, because if the ppp is excused...just do... lemonis: okay, everybody, slow down. lilia: this is the only check i would do today. i feel the ppp is gonna be forgiven. lemonis: okay, but -- thomas: this is also time sensitive. lemonis: no, no, that's not gonna help. thomas: but this is $75,000. lemonis: that's not gonna help. thomas: this loan is on terms. lemonis: that doesn't help. thomas: but today you're asking me to come up with $75,000... lemonis: nobody's asking you -- thomas: ...to pay off a loan that is in good standing... lemonis: nobody's asking you to do anything. you're not listening. thomas: i wasn't saying no. lemonis: only for today. you guys are both [bleep] this up. ♪♪ already, it's a [bleep] mess. hey, meghan, how long has he been gone? meghan: about two weeks. lemonis: where the [bleep] is this guy? in business, it's never just another day. it's the big sale, or the big presentation. thomas: today you're asking me to come up with $75,000... the day where everything goes right. or the one where nothin

and they received ppp loans to keep -- help keep over 100 jobs. jackson? >> so i'd like to start by saying thank you to senator sanders and his team for inviting me here to speak. the last year has been tough on all of us, i think. but to his point ppp helped us out in many ways that we did not see coming. but i guess i'll start by saying introducing myself and i am jackson barrigar, the president of acme electric. as you mentioned my grandfather started acme in 1950. we are a union electrical contractor here based out of cedar rapids. we handle residential, large, small commercial and industrial applications and last march it seemed like not overnight we went from having a good amount of work to we got 100 guys that need places to go and need to get paychecks. so it was kind of unnerving and i will say the benefit of getting a ppp loan and allowing us to get our entire workforce not only retain our workforce, but keep them gainfully employed, not to have them worry about how they're going to pay their mortgage, their car payments, anything along those lin

getting hit more acutely by this crisis i think you saw that a little bit in the response with the pppoans going to larger businesses. i think that that is still the case, and i think that the trend towards bank mergers has not abated, and that will always hurt communities of color, and this is a longer conversation -- the bank access composition has been a long-standing what. romaine: that's good on that road. you a couple of books on that-- you wrote a couple of books on that. when you look at the consolidation and the banking industry, and more important over the last couple of years, the proliferation of alternative banking methods, the decentralized finance, which a lot of black people and minorities have gravitated to because at least the mantra is that somehow this gives them access to something that they never had before, is that going to be conducive to closing the wealth gap? mehrsa: i understand the desire to opt out of the mainstream thinking come out of frustration, protest. i understand that a lot of -- it is younger people feel like the system doesn't serve them, creatin

how do they communicate reduction in ppp?nd how are they communicating with the current spike in inflation? mark: my colleague this morning wrote a note arguing the next six months bunds will underperform treasuries. treasuries have already priced the taper later this year from the fed, but bunds have not priced that in, but might be coming later this year. what are your thoughts on that? antoine: i do agree with the view that six months in my opinion. that challenge the ecb has around tapering is a risk. the decision shows the disagreement around this. that could send yields higher. the more hawkish the reaction, it will send the ecb back to the table. it is not a long-term concern. what is striking in u.s. treasuries is that we are heading for tapering this year. they will probably not rise a lot further over the next few months. anna: do you think more supply is going to keep a lid on yields to some degree? even if we are hearing tapering language from the u.s., and even if we do not call it a taper from the ecb, but maybe

came together under donald trump when he was president to pass excessive release laws like the act, ppp extension, the 908 covid deal in september. the methods and republicans voted in huge numbers in support of the law. republicans voted to make these expenditures. now we must come together to do the responsible thing and pay those bills. we no doubt raise the debt ceiling on a bipartisan basis. againd that is what mcconnell said when trump was president. we will nong doubt raise the det ceiling on a bipartisan basis. he said when trump was president, failure to do so would be a disaster. failure to do so now, leader mcconnell, is an equal disaster it doesn't matter who is president you still incurred the bills. so, i believe it should be no different this time around. the united states has never, ever defaulted on paying its fdebt. i can't imagine republicans would want to be responsible for the first ever default. we need to work together to reverse causing irreparable harm tode the economy. and i would say to the business community and the financial community, led leader mcconnell n

ppp ran out within two and a half months. we need help.i would like to echo the grants not loans. >> thank you for your comments. next speaker, please. >> this is cash here on market street between sixth and seventh. can you hear me? >> yes. >> yeah, we are still open but one of the few shops on this stretch of market street that is. more closed shops than open. it is what it is. my landlord is a sweetheart doing what he can to keep me going. we lost all of our commuter business when the pandemic came down and it hasn't come back. i don't want to say anything else. yeah, if we can get him some help to continue to help me out that would be wonderful. i support this. thank you. >> next speaker, please. good afternoon, supervisors haney and safai. steven lee. i own two businesses in chinatown. legacy business. it has been struggling over a year. we have been paying 50% rent. they have been generously reminding us how much we owe. we are only takeout. we don't have room to do indoor dining right now with the limiting capacity and also no room

ppp ran out within two and a half months. we need help. >> thank you for your comments. next speaker, please. >> this is cash here on market street between sixth and seventh. can you hear me? >> yes. >> yeah, we are still open but one of the few shops on this stretch of market street that is. more closed shops than open. it is what it is. my landlord is a sweetheart doing what he can to keep me going. we lost all of our commuter business when the pandemic came down and it hasn't come back. i don't want to say anything else. yeah, if we can get him some help to continue to help me out that would be wonderful. i support this. thank you. >> next speaker, please. good afternoon, supervisors haney and safai. steven lee. i own two businesses in chinatown. legacy business. it has been struggling over a year. we have been paying 50% rent. they have been generously reminding us how much we owe. we are only takeout. we don't have room to do indoor dining right now with the limiting capacity and also no room on the street to do park let. we are at th

. >> the ppp program worked but we went from rising wages to less purchasing power, is that accurate? >> inflation has exceeded wage growth? >> not just any inflation, 40-year half. >> first half of this year that is food, energy and shelter went up 10% annual rate. >> energy independence, we had the president of the united states, now we have the president of the united states begging opec to increase production. i don't think that's an economic plan that's working. i think it's dismal failure. he's nodding his head. let the record show. have you ever seen a dumber plan that e than the democrats. lock down your economy, spend like crazy. pay people not to work and the people who are working, we're getting ready to raise your taxes. could there be a dumber plan? >> we took the proposal seriously and ran it through and it's in net negative for u.s. economy. >> net negative. american people are feeling it now. when you pay people not to work, should you be surprised when you can't find workers? >> no one should be surprised by what's going on now that the benefit expired, lit be a diffe

but now it makes no sense we are going. >> the ppp program is the bestre program we have seen. . . .have been working and paying their rent by the way we are going to raise your taxes. i don't see howey that's going o help our economy either. we ranwe this through and i woud talk to my colleagues across the aisle. can we both agree that this wasn't a campaign tactic it was a bad idea but spending is going to be so good you don't have to worry about it. not only is the overall level troubling by the way it's being done is even more troubling. we lost 100 major headquarters and in the years since, zero and we are going to go right back to the third-highest with a high global tax that's exactly the recipe that caused trouble to begin with and so the way the taxes are being raised. >> thank you mr. chair i will yield back. >> thank you. [inaudible] i'm going to refrain from doing that and recognize for five minutes. >> thank you, mr. chairman. i appreciate the time. i have a couple of questions for you. the expanded child tax credit results recently came out in terms of how the money has

businesses and growing but received only $3.7 billion in the ppp loans a year or so ago, less than 1%total relief joining us is the u.s. hispanic chamber of commerce chair elect of the board and a cnbc contributor. welcome. good to have you with us >> tyler, thank you very much and thank you for this opportunity. >> you are very well one of the things that seems to bedevil not just hispanic-owned businesses but minority owned businesses is access to capital. why has it been such "inside info" tractablintractable issue? >> having been part of a minority owned business we learn that is the oxygen for businesses you're seeing that access to loans are 60% less likely to get. a lot of times when businesses are starting, and by the way, despite those challenges that they have in getting access to capital we see that managing that cash flow is a challenge. these things are compounded and it's something we are looking to address by working more closely with our partners to get the assistance >> what lies behind the fact that those businesses are 60% less likely to get the loans they seek than

need that money flows and gets out quickly and gets into the economy that is what happened with the ppp perfect but there was a need and the program was designed for speed and i got out we have a poorly designed program for the lack of demand to get this outcome which in ohio is six.8 percent that has been distributed but it is plainly obvious when you look at the numbers that this program is poorly designed we think about educating people whether 50 percent of renters 50 percent of landlords are unaware of federal assistance. but we are talking about the trouble of renters and landlords and this is all with the backdrop of the moratorium that was in place last week so brief on —- briefly what is the impact on landlords how do they respond as they come available for low income americans? >> the repercussions are significant and to that industry very excited to see these changes because so many of the hardships that are outstanding among the landlords would not be resolved through and administration so we are talking about the right thing at the administration of these funds were not imp

but i think when they finished the ppp programs, they are not going to be in the mood to change anytime soon. so euro-dollar bias may be around these levels. but the dollar and the fed, they are still going to be the dominant drivers. lisa: where the dollar is the dominant driver, that doesn't always mean good things for the rest of the world, and certainly risk assets. what will be the differentiating feature this time around, or will this also have a dampening feature on riskier securities? geoffrey: i think the one thing we can hope for is that if the dollar is dominant, the purchasing power of u.s. consumers will rise, and that will lift global economies. the u.s. consumer can still help lift global demand. that would be positive for emerging markets. at the same time, china is slowing. these things i think do very well for a positive risk ellen's. -- risk balance. tom: you are locked in a room with the wonderful stanley fisher, holding court rock. you just said we need positive real rates for fragile economies, fragile nations. what is the price of that mandate? is it a lessening o

china amended its formal application to join the ct ppp on thursday. u.s. abandoned the original deal in 2017 under president trump. beijing needs the agreement of all 11 member nations including australia. former japanese communications minister will run for the country's first female prime minister. the 61-year-old will contest a vote for the ruling liberal democratic party set for september 29. the renter of that race is assured to be, the next later. she is the second woman to contest the ruling party vote. global news, -- global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. ♪ shery-ahn: a move by the u.s. and the u.k. to help australia big -- build nuclear submarines has stirred up geopolitical tensions. up next, market insight from northern trust chief investment strategist the fed investors may need to lower their price. this is bloomberg. ♪ ♪ paul: u.s. stocks close lower after swaying between gains and losses. at that added to the longest st

all of those bills, particularly things like ppp, which were targeted, have had a salutary effect onolstering the economy. the bipartisan infrastructure deal makes sense. we have been shorting the pot on infrastructure for a while now. some of the blowout spending in this latest bill will likely be dialed back. we don't need to have significant increase in taxes in many directions. hopefully, there is a process they go through to skinny that one down and avoid some of the big tax increases, which could sap strength from the economic recovery. matt: bruce van saun, citizens financial group ceo and chairman. more headlines from president biden. we saw him earlier in front of the united nations general assembly talking about a reduction in the u.s. military presence around the globe, increase in u.s. funding for developing nations, funding to fight climate change, and funding to fight hunger as well. he also talked about the donations that the u.s. has made so far of covid-19 vaccines. we are learning the biden administration plans to donate 500 million shots of the pfizer vaccine. that

most of the fintech firms in the sda, once we gave them about $330 billion in the second phase of the ppp program, fintech engaged. they were able to put out 50% of the funding through fintech lenders to people who needed it. unfortunately about 75% of the fraud we detected was from that 15% that went out through fintech lenders. these were even some of our best. cabbage, which had previously never handled an sba loan, they were one of the companies that had difficulties. i'm wondering if there any lessons learned about that rule. i know we were rushed and pushing to get the first phase, the banks took care of their favorite customers, i understand that. those were known entities. then we have congress encouraged a further reach out for the sba for people who were not addressed in the initial phase. are there any -- we had the rushed aspect of it. i am not sure with the api interface is between the sba and the fintech lenders. did we learn any lessons from that interaction in getting money out to people who need it, the fintech companies and blenders we used? sec. yellen: certainly there