those the right write the sba-- loans. that is where most of the hangup was, it's not the sba itself so i don't think there was the initial problem but clearly on the idle program the sba has not performed at a level that they need for the format so they are not satisfied at all. as far as using a distant institution we could have but quite frankly, the money got out quickly. the loans are processed rather quickly. and i think most small businesses got a ppp loan before individual taxpayers got their check from the irs. so i'm not sure if there is a better way to start a new program and i think we were successful in getting money out quickly. >> one of the things that came up in a discussion with secretary mnuchin is the period of time and i may get these numbers wrong, but there was an eight week window and now many of these committees are coming back online and that loan time is too short and saying we need to move it to 12 weeks or much longer time. where are you in that? what is the right equilibrium for small business

sba, for folks who are running businesses who want to take part in this program, how is the sba performing right now? are they big enough to handle all of these requests coming on? guest: i think now it is working fairly well. in the first month where there was that rush of companies, the sba was asked to approve in two weeks something like 20 times the number of loans they normally do in a year. you can imagine how that worked. provideuses a system to origination numbers. it was routinely overwhelmed. the short answer is they are nowhere near big enough. the long answer is somehow they did it. they got through the first two weeks. it seems to be working relatively well. host: looking you tell us about lending banks and their involvement? are they getting what you might consider the regular fees by being part of this process? guest: the banks also have been overwhelmed. they only at the beginning wanted to work with their existing customers. on loans up to $350,000, they make a 5% fee, which sounds generous, but the average loan about $200,000. now it has come down to 37 thousand dollars.

the sba and treasury brought this program up as a new program rather quickly and there certainly have been pains in its growth and things that need to be corrected and fixed but the most important thing right now is to get the data to understand how the program is working and then we have to have transparency to make sure that all small businesses have opportunities, including those that are traditionally underserved and under banks. that has been our priority and we are working on dealing with one notable problem with ppp programs and that is the eight weeks set in the time period and at present challenges because we thought the economy would be performing better than it is and we are all in agreement that we have to give some flexibility on that eight week time period. >> what have we not gotten right either in the first round of supporting this beyond the transparent the issue and where they're parts of the way this was designed because later in this session i will have, for instance, the ceo of go daddy, they do demand registration and have lots of insight into micro businesses an

i did call -- c-span had the sba person a wild back. i wrote to him, called him -- i did not hear a word from him either. i tried calling my senator. there is a whole process to standing in email, which i will try to do, to see if they can help me. i just would like to know where i can call in. guest: this is another problem with the program. i am glad you brought it up. a lot of banks are no longer accepting applications, because they are the ones who are going to have to determine the forgiveness, and they are starting to realize how much work that is. you do not have to be a customer of a bank, or currently, to submit an application. i would go to a community bank near you and find out if they are accepting applications. if they are not, there are a number of online lenders that are. we have a list of them on our website, inc.com, but i can tell you we have heard, still, people getting loans from intuit, they arepaypal -- doing a lot of loans, especially for smaller companies. and they are set up with the technology to get them throu

sba performing right now? are they big enough to handle all of these requests and inquiries that are coming along? guest: i think, now, it is working fairly well. the first trench of money when there was really that rush for companies to get the money, the sba was asked to approve, in two weeks, something like 20 times the number of loans that they normally do in a year. so, you can imagine how that worked. the sba uses a system called e-tran to provide origination numbers, and it was routinely overwhelmed. so, the short answer is no, they are nowhere near big enough. the long answer is somehow they did it, got to the first two weeks, and now it seems to be working relatively well. host: what can you tell us about lending banks and their involvement in all of this? are they getting what you might consider to be regular fees as part of this process? guest: so the banks have also have been overwhelmed. they only come at the beginning, wanted to work with their existing customers. theyans up to $350,000, make a 5

as it relates to the program, that's within the sba but let me comment that the sba had significant systems issues getting the program up and running. i thought the grants were doing much better than the loans i'll follow up and look at that. on the loans, the rebuilding the entire system because i think we have over five million loans to process. we will follow up with you >> you know the sba chainged to issue $1,000 per person and the original was 10,000 per company. who authorized the change? >> i believe the sba administrator made the change. i believe her thought wads there was limited money and try to spread it out amongst as many companies as possibly. >> she did not think to go back to ask congress to authorize money to pay for that which they appropriated and call for in the legislation? >> there was additional money in the second phase we appreciate the congress reacted to that. >> secretary, my question is, made this internal change without getting authorization from congress and if they are saying they did it because they didn't have enough money we gave more money and they stil

programates to the idle , that is within the sba. the sba has a significant systems issue getting the idle program up and running. i thought the grants were doing much better than the loans, so i will look at that. on the loans, rebuilding the entire system, because you know we have only -- over 5 billion loans to process. we will follow up with you. sen. sinema: as you know the sba change the policy to only issue $1000 loans per employee. the original plant was $10,000 per company. who authorized the change and why was it made? sec. mnuchin: the sba administrator made that change and i believe her thought on that was there was limited money and to try to spread it out amongst as many companies as possible. sen. sinema: and she did not think to herself let's go back and ask congress to authorize more funding to pay for that which they appropriated and called for in the legislation? sec. mnuchin: there was additional money in the second phase and we appreciate that congress reacted to that. is thenema: my question sba made this intern

. >> reporter: he applied for a $30,000 loan through the sba to cover his mortgage payments plus his business expenses. after two months his loan was finally approved, sort of. >> they were telling me that i was approved for $1,000. i thought it was a mistake. i thought the loan officer missed a zero or two or three. i feel it's a broken system. it's not meant to be -- even though it's called small business administration it's not meant to be for small businesses. >> reporter: since march through four separate actions the u.s. congress has approved $1.8 trillion in funding to help businesses large and small survive the coronavirus pandemic. that includes $810 billion meant just for small businesses. we combed through s.e.c. filings and found more than 50 small business loans worth more than $150 million which went to publicly traded companies in california. recipients include software companies, chain seafood restaurants, an investment group that owns boutique wineries, and a sports memorabilia authenticator. >> the bigger fish you are the closer to the government you are. >> reporte

what data points does the sba have? and to see if we can get them and what i don't want to see is an agency that small to begin with and struggling to get thesera programs i want people to get this information and in the end the administrator treasury secretary will have to write s these things up and people that are working from home , living in this region, and this is already struggling to manage to add an additional requirement of the unintended consequences. it is my view we will find out all of this information. and then to do something about it i don't think that's the right approach. request. mr. schumer: madam president? the presiding officer: the objection is heard. the democratic leader. mr. schumer: i just want to thank my colleague from florida. i do believe he's sincere and has the best of intentions to want to make this program warning. i just make two quick points. first point, the more data we s.r. the sooner we have -- data we have, the sooner we have, the better we can make the program. it won't slow

they had 800 sba banks were approved under the sba system prior to this, some 5,000 banks made 4.3 million loans and so far put out $520 billion to companies under 500 employees. by the way, 99.8% of that $520 billion went to companies with fewer than 500 employees it did what we wanted to do. 93% of those loans are $350,000 or less. my problem is this, secretary, is that i think we have two levels, one in the bill itself and one that is happening now and what we've done here, is that we've disincentived people to go back to work we have two constituent groups throughout, the military and essential workers, but look at how they've managed their protocols and so forth while they managed through this crisis and it gives me confidence that we can open the economy up the unemployment premium is keeping people from coming back to work. there are employers in my state that want people to come back to work and they're saying no, i'm going to enjoy this premium and call me back in a couple months. the second thing, a lot of small employers encouraged a few weeks ago their employees to go on unempl

if you apply for the sba loan, the paycheck protection program loan, and you apply for unemployment,pply for both but you can only take one or the other. in other words, no double dipping and the reason, arthel, say you're getting money forgiven for your payroll through the paycheck protection program, you can't also be receiving unemployment income as well for that 8-week period of forgiveness. again, just to recap, you can get a stimulus check if you're also supplying for sba loan but you cannot get both unemployment and the paycheck protection loan money at the same time. it's an overlap, it's like double dipping, hope that makes sense. arthel: thank you, that makes sense, thank you. finally you have female-owned, african-american owned businesses they are at the end to have line of ppe payout, how can they move closer to the front of the line to get assistance that they desperately need? >> gene: that's such a great question. unfortunately a lot of minority-own businesses have not been receiving loans to the same extent as others. some in a lot of cases is just education, they ar

plaudits to the administration and the congress for getting this money to the sba, getting it out the door. the average loan is smaller, suggesting that it's going to smaller businesses. and that's all great. but doesn't that also suggest there's a real need for more money in that program? >> it may be, jake. it may be. we haven't made a decision yet. i agree with your points. this has been an extremely popular and effective program, no question about it. you know, keeping folks on the payroll is so important. and even if they're furloughed for a while, they'll be picked up by the unemployment compensation. so yes, that suggests, i might add, potential strong springback once the states gradually phase in their reopenings in the transition months of may and june. i don't want to rule it out. i think your point is well-taken. we waited a little bit too long, i thought, when the last tranche ran out, let's not make the same mistake again. we'll be looking at that. but we also want to look at some medium termite items. the president is very keen on a payroll tax holiday for workers, we ha

when i did hear back, i did save like an sba number, and that sba number asked me for additional information. the email was strange. it came at 7:45 at night. if i was not paying attention, i would have thought it was spam. but i responded with the proper documents. and then we didn't hear anything back until i turned on the news and i saw that the program ran out of money, and that was, you know, tough for us because we were told so many things that if you received an sba number, then chances are that you would actually receive your funding and that we needed to, you know, wait patiently until our lender went through the process. but to date, nothing. >> and do you believe that that number, that application is in place for the second round of ppp? you don't have to reapply under the new plan, do you? >> well, the problem is is that there is no transparency. so we don't know what to do. we've heard from sba officials that if we apply during the first round, then we shouldn't apply again. we've also heard from other, you know, governmental, you know, talking heads that we should apply to as m

requirement of looking for funds elsewhere before applying for the loan is waived the treasury and sba did issue the guidance last week that hedge funds did not qualify and the treasury secretary said loans above $2 million were going to be audited. a lot of last minute changes after the program that we'll continue the monitor back over the you. >> kate, fraud is one thing and if there is fraud, i'm sure one way or the other the treasure department, the department of justice will get to the bottom of it. a lot of businesses have been saying the rules and stipulations were so fuzzy, this was rushed so quickly to market that they thought this good faith they were eligible to do what they were doing >> that's such a good point. there's enough blame to go around you can't fault the government for wanting to get the money into hands of small bid owners as quickly as possible you can't fault the businesses for applying and thinking they were eligible. it does clear up some of that. it was made after the fact another thing we mentioned yesterday, businesses want some potential changes to the

according to the sba the loan hundred the ppp is $18,000. during the second round of funding the average loan size has been around $70,000. on april 28 the treasurer announced that it would review all loans in excess of $2 million to make sure that the certification for the loans was appropriate. last week sba eight treasury provided a safe harbor for loans under $2 million. on may 8, 2020 congress committee chair sent a letter to secretary mnuchin requesting a detail report on the status of the program on on may 12 treasury announced a new transparency measure with regard to the psp. i encourage you to continue your work and update information as additional funds are disbursed. i commend each of you and your staff for hard work and if ordinary actions you have taken to stabilize the economy and provide support to americans during this time. thank you for joining us today to share your agency's activities in response to covid-19. senator brown. >> thank you, chairman. i want to thank these four following the best advice. i will welcome secre

is that something the sba could have done?e reality, arthel, is that -- and you referenced it in the lead-into the segment that there's two programs. there's the idled program which is the one that they've shut off right now and then there's the paycheck protection program. i think they were overwhelmed with the volume from the paycheck protection program and this is a much smaller by scale program, there's $50 billion of funding for this program, close to $700 billion in funding for the other one and then the other one, the paycheck protection program, they used banks to help with the underwriting process. here, they're all on their own. so i think it's just the sheer volume and the other thing that's happened recently is that more borrowers are looking at this program because it has more flexibility. it's not forgiveable like the paycheck protection program but doesn't impose the restriction that you spend 75% of the proceeds on payroll. arthel: you make a good point. listen, in fairness, this is new for everybody. and the g

more than $1 million set aside to help businesses fallen through the federal cracks and can't get an sba loan. >> i am expecting large numbers. >> not only has the state of california started to step in where the federal government has left off, but several cities like san francisco and alameda have also launched their own small business loan program for those businesses that don't qualify for a federal sba loan. you can find out more information about thoseo nbcbayarea.com/investigations. >> if you have a story for our investigative unit, give them a call, 888-996-tips. or you can visit our website, n nbcbayarea.com/investigations. >>> kari, how is the weather looking today? >> we will have warmer weather coming in for the weekend, but right now starting out with most of us in the mid-50s. we will take a look at a warmer forecast coming up after the break. we're here for you and we're open. wow. i'm an original. one of a kind. you feel me? love ya'. oop! you look cute! better than you? pop my 100% all-white-meat classic or spicy popcorn chicken combo for just $5.99. my new bite-sized, c

liability so we toned that down and said okay, if you go through review and pay back the money the sba will not refer you to any other further enforcement actions but yes, the bigger loans will be reviewed and they will be reviewed on a case-by-case basis and companies can make their arguments with no different then you go through any review. >> there's all lawsuit pending about the nonpublic companies. media organizations have said they deserve the right to see who is getting this taxpayer money. do you agree with that that the public deserves to know who is getting the money whether public or not public? >> let me just comment. i very much support oversight and transparency. when we negotiate this bipartisan bill we added in unprecedented oversight and transparency. we created a new inspector general for various parts of that. we created an oversight committee and there is bipartisan and in the fed of programs we've specifically agreed within 14 days to release the names of companies and that was something that was interest in it. i think in the ppp it does not require disclosure. i

we realize people do have more overhead and they can go out and take out a loan which is a 30-year sba loan to pay back but we want most of this money to go to workers and that we believe the 75% was exactly consistent with the way the program was designed. >> there are roughly around 30 companies, public companies that say they won't return the money that they received in this loan grant program. they say that the goalposts have been changed. will you go after these companies and why, if it is safe saving jobs after all? >> let me comment that there was a certification that was in the application that the funds were necessary. and as i said before there were a few companies that became the poster child for the public being upset. i said this before, i'm a big fan of the los angeles lakers and they are one of my favorite teams, but we did not envision this was a program for the los angeles lakers. they obviously have the financial means to pay their players and support staff. also, as you look at shake shack which was a large public company again, they have the financial means, whether

that would be helpful if we could get progress from sba. we want to make sure the borrower has clear rules of the road and make sure they can get full forgiveness. i am hoping 100% of all loans become forgivable at the end of the day. host: a quick look at economic news. the labor department has 3.2 unemployment claims pushing past the total estimated number of jobs lost. florida with val. caller: good morning. we went to our bank and try to apply for a ppp loan and they rejected us. they say they do not handle that. we do not know what bank would offer that? the larger bank says no. where do we go to find banks that do not give us the loan? where do we go? guest: thank you for the question. sba.gov, sba website, and you will see a list of vendors who are participating in the program. i am pretty sure there are several institutions, many with in a two mile radius of your residence or small business, that would be glad to help you with the application. host: richard hunt is president and ceo of the consumer bankers association. we really app

i have a question. 800 loans were approved under the sba system prior to this. almost 5000 banks made 4.3 million loans and put out $520 billion to companies under 540. 99.8% went of that to companies with fewer than 500 employees. problem is i think we have on two levels, one in the bill itself and one that is happening now, is we have disincentivize people to come back to work. my state is beginning to open up, and safely. we have two constituent groups, the military and essential workers. look at how they managed their protocols while they manage through this crisis. it gives me great confidence we can open the economy up. the other premium is keeping people from coming back to work. there are people in my state want people to come back to work, they are saying why would i do that. i will enjoy this premium and be back in a couple of months. employers thing is encourage their employees to go on unemployment, even though they were getting money and they were hoping when the revenue started they would begin to bring the people back and then use the loan to pay

folks have not been aware -- i'm sure everybody is in the small business community -- thae federal sba program -- those applications opened up this morning at 7:30 a.m again, go to our website for more information there. where you can learn about additional partners, financial institutions, who can also help you in getting those applications filled out. why is that important? because many banks are only working with their clients, and prioritizing them on a first come, first serve basis. there are billions of dollars being held for other smaller lenders, other smaller banks and cdcdfis, and making sure thethat the public knows they are there. please do take the initiative right now, reach out to our hotline, as you mentioned, cynthia, and get realtime information from us, with any questions you may have, you will get a response and talk to a person when you reach out to us. so i think i'll leave it with that. as a final piece, the mayor also introduced a neighborhood mini grant program on friday afternoon. it is also meant as another fill the gap in some of the most underserved neighbo

but that is supposed to provide the sba program to supposed to provide cash to smallest businesses onvorable terms and in fact, those loans are at least partially forgivable if the company small companies maintain their payroll. the fed is helping there as well, it announced i think today or yesterday that it will buy sba loans from banks or provide secondary market for those loans making them more liquid and making banks more willing to make those loans. i think the thing to emphasize here is that the fed, with the fed can do is reinforce the private credit markets, the private credit markets are dysfunctional because the leveraging because of uncertainty, the fed can come in and replace those markets to some extent or strengthen those markets and try to bring private lenders back into those markets. the fed does not give away money, the 13 Ãrequirements to require that the fed pay collateral and intend to be repaid but in order to give the fed some protection a big chunk of the money in the fiscal program Ãbprovides equity for the lending programs so that if they do lose money, it w

make loans on good terms to the mid-size terms the smallest businesses are eligible for loans from the sba, the small business administration, that began this week, again, he issticks for important. they've been some snafus in terms of getting the money out. i hope that will get straightened out. that's supposed to provide the sba's program is supposed to provide cash to smallest businesses on favorable terms and in fact those loans are at least partially forgivable if the companies, the small companies, maintain their payroll. the fed is helping there as well. it announced i think just today or yesterday, that it will buy sba loans from banks or provide a secondary market for the loans, making them more liquid and banks more willing to make the loans. the thing to emphasize here is that the fed -- what the fed can do is re-enforce the private credit markets. the private credit markets are dysfunctional because the the leverage because of unser it. the fed can come in and replace the markets to some extent or strengthen the markets and try to bring private lenders back into the markets. th

some of them received emergency loans from the sba. others became one of the more than 80,000 small businesses and self-employed workers who were able to take advantage of the paycheck protection program, but no matter how hard they work or how smart their pans are, we know that in the end, we're going to lose a lot of our favorite neighborhood stops. it's tough. it is really tough out there. some of those businesses are already gone. and that is going to happen in spite of the unprecedented investment that the federal government working with our state and local governments, has made into our business and our health care sectors. making certain people are able to stay afloat and bridging, from that rescue to a business restart. and bridging on to recovery. well, as we saw this week, the more washington spends, the more washington's focus drifts away from emergency measure and that rescue and it doesn't go to a restart or a recovery. what does it do? it goes to how can we use this crisis to grow government. how can we use this crisis to

i did call -- c-span had the sba person a wild back.rote to him, called him -- i did not hear a word from him either. i tried calling my senator. there is a whole process to standing in email, which i will try to do, to see if they can help me. i just would like to know where i can call in. guest: this is another problem with the program. i am glad you brought it up. a lot of banks are no longer accepting applications, because they are the ones who are going to have to determine the forgiveness, and they are starting to realize how much work that is. you do not have to be a customer of a bank, or currently, to submit an application. i would go to a community bank near you and find out if they are accepting applications. if they are not, there are a number of online lenders that are. we have a list of them on our website, inc.com, but i can tell you we have heard, still, people getting loans from intuit, they arepaypal -- doing a lot of loans, especially for smaller companies. and they are set up with the technology to get them through q

mayor breed, many small business owners have not even heard back from the sba jet o yet on their loans. do have you an update on the federal assistance program? i know this morning there was new funding added to that, but do you know anything beyond, or how the city can help advocate some of the small business owners who haven't even had a chance to -- >> mayor: yeah. and joaquin can provide some insight into that. his office is working on trying to get access to that. >> absolutely. that is one of the biggest questions for us, in terms of where is accessibility happening. almost immediately we were on the phone with financial institutions when we were getting questions across the city about what does this program look like? everything was rolling out so quickly, everyone was scrambling to understand -- even their own lenders, who they had a relationship with, would provide them guidance or even a response. what we're monitoring very closely now, both treasury sisnaros and the recorder, cameron chu, reached out to the financial institutions to ask, how are you communicating with your c

the sba is doing a webinar on this. so if you are a rural hospital in nebraska, the sba will be doing a webinar. go to their website and check it out. you will be able to get more information about how you, as a rural hospital, and apply for the paycheck protection program -- can apply for the paycheck protection program. i think we hit upon all the things i wanted to hit upon and now we go to questions and answers. ok, aaron. will the state consider setting up test sites in north and south omaha? first of all, tested nebraska.com -- test nebraska.com is that the cih health center arena. we are working on expanding testing as well. we are working on expanding that testing with other sites, as well as working with those two organizations directly about how we can do more testing for communities in north and south omaha, so yes. second question, why not mandate reporting for meatpacking plants to public health officials? i want to take a step back with regard to the meat processing facilities. we have had three fatalities

and oversight in this bill will help alert the sba, and the congress to those needs. finally, the oversight needed here is simply one example of the accountability that should be imposed on the entire cares act. real accountability demands a watch dog, not a lap dog to top the waste and fraud that seems common in this administration. that's why i've been working with my colleagues, most prominently senator warren, in strengthening oversight of programs created by the cares act created during this pandemic. we need to make sure there is effective enforcement and a hammer that is essential to detour wrongdoing, preserve resources and conserve credibility, strong scrutiny is required to make sure that aid reaches the right hands and i know that all of us believe, for example, conflicts of interest should be barred, retaliation against whistleblowers should be prevented. firing of the inspector general without just cause should be stopped and that means keeping an eye on these programs, not just a wandering eye, but a focused, strict, scrutiny that will assure transparenc

where is the sba administrator and the problems with ppe? what about secretary scalia of unemployment insurance? how do you protect workers from this pandemic when they are required to go to work? and even the hearings we are having our slow like toothpaste from the two. we are hearing that we are getting an update on the 19th. that is two months after we passed covid three. that is not oversight. that is not congresses job at any time or worse because we are in a crisis. them last night, amazingly, the republican leader explained the republicans have put back not yet felt the urgency of acting immediately". let me repeat that with millions of americans second tens of thousands dying with the prescient levels of unemployment the republican leader mcconnell said republicans have pulled mac not yet felt the urgency ofat acting immediately". we live in a divided nation but one thing everybody agrees on his there is a great deal of urgency right now. leader mcconnell, there is nothing more urgent a family that is struggling to feed their childre

gaze into use it -- sba guarantees it. there are only 1800 banks who already qualified for the program. let's say that we said, let's expand it. we said, let's expand it. they already have the relationship there. we did more than 1.6 million in the first segment before the money ran out and the democrats held it up. i think he had over one million loans sitting there. i don't have the exact number today, but they are moving them rapidly in the process. we expanded beyond just business because we know how important nonprofits and churches are too dealing with the community. we wanted to open up for them as long as they have less than 500. we expand from credit unions. we focused on the smaller banks, community banks, they have done the majority of the loan. we even came into finn tack. this was a whole new operation. a lot of this hinges on who you bank with. some are more productive than others. i had a lot of local businesses who came to me that you would know who have a long history, from cleaners to drycleaners two o ma

they threw out the sba size guidelines. the sba has size guidelines on what a small business is. congress and the administration, this was the administration's idea say if you have 500 employees or less, quote, you're eligible for this program. so there was a failure of public policy on the executive and at the legislative level. round two, because of your advocacy, my advocacy, the advocacy of many is much better, but we have to get the data to see. >> and i put up business owner, blacks 95%, latino, 91%. native hawaiian or pacific islander 91%. asian, 75%. all of them likelihood of being denied by mainstream banks. that's why we're doing this. i need to ask you this. you have written a book. we were teasing each other because both of us are working on a book. yours comes out this week and mine is weeks away. you call it the gumbo coalition. why? what is gumbo coalition mean? >> gumbo is a great new orleans dish, my beloved hometown, the city that i left, the city of my birth and heritage reflects a food, an incredible dish that is made up of a variety of ingredients. and you ca

it took the sba two weeks to process 1.6 million loans in the first round. but now just over a week, more than 2 million have been processed. >> that's progress. stephanie, based on the data you're looking at, what would you tell small business owners who have yet to see any of that money? >> dan, the best thing to do is check with your lender. they'll be able to confirm where you are and the internal process or verify if your application has been submitted to the sba. >>> stephanie, thanks. stephanie sierra reporting. abc 7 is partnering with iheart radio. thousands of bay area stores and services are still open the offering to help with essential needs and many are hiring as well. go to abc7news.com to find sources. click on support the bay. >>> college students count on summer internships to get real world work experience. for many, it could be a lost summer as companies weigh whether to create virtual program. david louie is live with what's at stake for students and how various companies are adapting. >> david? >> well, ama this is a problem for college

announced they would review all pp loans to make sure the borrowers self certification is appropriate sba in treasury have a safe harbor for under $2 million commerce committee chairman sent a letter to secretary mnuchin for the payroll support program with a detailed report on the status of the program to announce those new transparency measures i encourage you to continue your work with the applicants as those funds are disbursed. i commend each of you and staff for extraordinary actions to stabilize the economy and provide support during this trying time. thank you for joining us today in response to covid-19. >> thank you for following the best advice to hold a virtual hearing to prevent the spread of coronavirus. thank you for joining us. i'm so outraged by mcconnell's reckless decision to keep senate in session including capital police officers, custodial's staff cafeteria workers and everybody at risk. with those public health authorities advice and has no plan to get additional help for families and communities the house passed a bill that incorporates our plans the american peopl

it's receded quite a bit i give a lot of credit to the sba. they have worked like crazy to come up with exactly what the rules should be. we just needed firm guidance and now we have it so the processing times on these loans has literally gone from a number of days to where we're able to process loans in less than one day at this point, if the borrower has the package ready for us >> let's talk about those borrowers. what are you doing to ensure that the borrowers actually qualify under the program? because one of the criticisms, of course, of some of the loans was that larger companies were manipulating the regulations one way or another to get loans when really they shouldn't have, or that they didn't qualify and were doing fraudulent things to get the loans. how are you make sugar that the right people are getting the right amounts? >> that's a good question. and let me first say that bank fraud is a very serious issue and i applaud the prosecutors that are going after the bank fraud. let me also say that this program, as you pointed out, w

we are working diligently with the sba to provide credit unions guidance and resources so banking --o they can continue to participate fully in this vital program. each day i have the pleasure of reaching out to credit union ceos nationwide, for on the ground updates on how they are coping with the pandemic, and how ppp loans are being used to help main street small businesses survive. on one call, i learned of a small credit union that made 150 loans totaling $8 million, helping companies that on average have seven or fewer employees. on another i learned of eight cdf i credit union in mississippi which made 1000 ppp loans to local businesses that serve low to moderate income and minority communities, including one loan to a historically black university that was unable to obtain financing from any other institution. these efforts epitomize the credit unions eat those of people helping people. -- ethos. matchings and regulatory relief as part of our covid-19 response. these actions approved in april assure that federally insured credit unions remain operational and liquid and provid

we need a specific allocation, probably under sba for the territories. many of our small business owners don't have professional business plan writers to submit these applications. when one of our local banks was finally able to process payment protection applications the very next day the program was closed. although there's new funding now for the coronavirus, the sba portal is not up. and many have been shared by my colleagues from the other territories so i don't want to repeat those, i would like to yield my time back to the committee so that we can give more time for questions and thank you again for the opportunity and we're ready to take questions from the committ committee. >> thank you so much and thank you for yielding your time. before i turn to my two colleagues, a couple of brief questions. miss young, you talked about the obstacles. one of the things, and i think, you know, in the process of saving lives costs money, we all know that and you see some of the economic consequences of doing those very necessary and life saving strategies and

that's been an arbitrary decision made by treasury and sba.ot to look at what's going to be important to business. and to their employees. >> well, i appreciate that. i appreciate that you're going to push to make all of this information public. can you tell us where we stand on the heroes act? obviously, didn't make its way through the senate. will you be looking at it? >> well, i sure hope so. you know, i think all of us were disappointed that, as i said, we came back in on may the 4th. we thought we were going to be back in washington to address further action to help people who are affected by this pandemic. and the fact that the heroes act passed the house and we did nothing with it in this last week is just a reflection of the lack of focus by the majority in the senate on what we really need to do there to help the people who are hurting, the businesses who are hurting. we're not going to be able to stand back up our economy unless we help businesses and their employees, unless we can get the testing and contact tracing to allow busines

and logistics is so important and then i guess they will get straightened out and then provide the sba program and then these are at least partially forgivable. and those to maintain the payroll. >> i associate director of nyu institute for public knowledge and for this virtual event celebrating warren sandler's book. thank you all for taking the time to tune in with us tonight i would also like to thank a few key people have made

you're going to use it just like any other sba loan? >> not even like any other sba loan.y other loan from our bank. so what ends up happening is, right now, we're on track to spend 90% of it on salaries and benefits for employees and 10% on rent. the idea is, if you can get through this crisis without having had to lay anyone off and you don't -- you had the economic uncertainty, but you don't have a wiped out business, then it's just a loan with a low interest rate. you owe it to the bank. it's not taxpayer money. it becomes taxpayer money if and when companies go out and apply for forgiveness. then at that point, they're not paying it back. but we're not there yet for any of the companies. 4.5 million small businesses have received these loans. there's another $138 billion left in the program. we don't know how much of that will have companies applying for forgiveness after the eight-week period. my goal is to not apply for forgiveness and just be thankful that i was able to get a bank loan and reassure my employees and my clients that nothing would change. we weren't f

birx, mnuchin,i, the sba administrator and powell before the senate being asked very hard and tough questions. that is not happening. and wewe moved our u.c., hope maybe this week our republican friends will consider. -- reconsider. i am ready for questions. >> one of the groups of small business is asking for way more help and way more flex ability is the restaurant industry. they want flexibility in the terms and a stabilization fund. $120 billioncan you comment on that? sen. mcconnell: sen. schumer: i have spoken to lots of the restaurant owners in new york, and many of them are worried the program may not fit their needs. they need the money. don't get me wrong. they want the program, but the problem that they see, many of them, is that they are closed now, and when they are allowed to open up, they will have very few customers, yet they will have to have their employees come back. if that is after june 30, will they be allowed to have money? so these are the kinds of reasons we need money, to see who is getting it, why they are getting it, and of course we should improve and change these

. >> the report says the doj has reached out to the 15 to 20 largest processors and as well as the sba we have not yet got a comment back so far, there haven't been any public reports of fraud. this is after one of the programs was met with criticis when businesses like shake shack and sports programs such as the lakers were able to access the ppp. now both of those companies have returned their loans the new process is shorter and more stream lined. a two-page application the borrower has to make a certification in good faith that the current economic conditions right now make this necessary. and the 7 a funding requirements exhausting other sources and saying hedge funds and others may not apply. this comes after the banking community was divided with regard to the banking window for those with under $1 billion in assets to ensure e tran was running more smoothly and to make sure smaller businesses could access aid the idea that this tips the hand to certain businesses when in reality all businesses of all sizes borrow are banks of all sizes. it is unclear why that concern >> are we

the sba administrator needs real backing and bolstering.also need guidelines to make sure the sba money goes to the unbanked. the people who are not getting the help rather than the big boys. some of that was exposed. i, in fact, went on the floor yesterday with ben carden and said let's have a complete list of who is getting the loans and who is not getting the loans. our republican friends, who as you said, don't want to do anything, blocked it. >> but senator, it's the media who is exposing it. and it's congress who set the rules. and congress has been complaining for the last two weeks about the big boys taking the money they shouldn't, but they didn't take the money illegally. they took the money that they were allowed to take. does congress need to, a, change the rules and then, b, force the sba and the treasury to make this information public? there is no rational reason why every tax i.d. for every business and company that took that money to not be known by the american people. that's our money. >> you're 100% right, and that's wha

a small amount of business at a specific restaurant, you are eligible to get this money through the sba mechanism, the smaller business portion of the ppe cares act. a lot of of people are saying that's unfair. you saw a company like shake shack return the money back because it's such a large national chain, a public company that should be able to get money from other sources. now, let's let our viewers take part in this conversation. upare going -- going to open regional lines again. eastern and central time zones, if you want to talk about the future of the restaurant industry, (202) 748-8000. if you are in the mountain and pacific time zones, and you want to talk about the restaurant industry, we want to hear from you at (202) 748-8001. and we are going to open up a special line, i really want to hear from the restaurant owners and workers, we want to know what going on at your place, we want to know how you are surviving this, have you had to close down? are you reopening? the special line for restaurant owners and workers, that's going to be (202) 748-8002. keep in mind you can alw

where so many clients and customers were hit so hard >> the bottleneck is everywhere along with the sba or other places, it is hard to handout that amount of money there was also the administration irs is hiring 3,500 more telephone operators to try to deal with more calls americans saying, where is my money, it hasn't landed here yet. programs this big, there are going to be hiccups along the way. >> when we come back, dr. scott gottlieb weighing in and the statement that president trump is taking an unapproved drug as a preventative measure >> announcer: today's big number, 30%. that's how many stores jcpenney will close as part of the nkptbarucy plan. 200 stores this year and an additional 50 in 2021. at mercedes-benz, nothing less than world-class service will do. that's why we're expanding your range of choices. many dealers now offer optional pick-up & delivery and at-home maintenance, as well as online shopping with home delivery and special finance arrangements. so, whether you visit your local dealer or prefer the comfort of home you can count on the very highest level of servi