Treasury Secretary Defends Administration’s Handling of Federal Bailout

WASHINGTON, DC – As the Federal Reserve Bank (Fed) continues to hold interest rates near zero and the Treasury works to dole out small business loans, Senate Democrats Tuesday charged the Trump Administration with choosing Wall Street over Main Street. Treasury Secretary Steve Mnuchin defended the fiscal response during a virtual Senate Banking Committee hearing, saying he was willing to extend or modify the extremely popular Payroll Protection Program (PPP). The program provides funds for small businesses to continue making payroll, lease and utility payments and may be forgiven by the Small Business Administration if certain goals are met. The businesses that accepted PPP loans during the initial $660 billion offerings are nearing the end of an eight-week window where the loans may be converted to grants if the funds were used. Mnuchin admitted, however, that companies are having a difficult time using the funds prior to the end of the window and suggested that he might allow flexibility.