New Analysis Shows How the Program Pushed by Senator Susan Collins Benefits Big Banks and Corporations At the Expense of the Small Businesses it Promised to Help
83% of Maine Small Businesses Have Not Received PPP Funding
oday, 16 Counties Coalition released a new report detailing how big banks and corporations are the real winners in the Paycheck Protection Program (PPP) sponsored by Senator Collins and her Republican colleagues, at the expense of Maine’s small businesses. Thanks to loopholes and a lack of oversight in the PPP pushed by Senator Collins, big businesses have received preferential treatment and big banks have reaped huge windfalls — while the vast majority of the Maine small business owners Collins’ promised the PPP was designed to help haven’t benefitted.
According to the report:
Big banks and corporations win:
- The loophole in PPP that treats franchises the same as truly independent small businesses and has enabled corporate chains to syphon millions from the program was written by lobbyists from the hotel and restaurant industries. It was included in the bill with the blessing of Senator Collins, Majority Leader Mitch McConnell, and their allies to benefit corporate owners.
- Big banks have collected over $10 billion in fees from PPP loans, and are also able to further profit from the program by selling the loans to third-party servicers.
Maine small businesses lose:
- Maine small businesses owners, and especially those in the hospitality industry, have found that even if they are able to obtain a PPP loan, there are significant structural hurdles written into the program that may prevent forgiveness of their PPP loans. This makes the PPP a burdensome additional debt, instead of the lifeline businesses were promised.
- The fact that this program does not work as intended for the Maine hospitality industry, which employs 70,000 Mainers, is a significant oversight by Senator Collins, who is supposed to represent them.
Read the full report here
“The more we dig into the details of the PPP, it’s clear that this program is designed to benefit corporate interests and not the vast majority of Maine’s small businesses. Susan Collins is giving away our tax dollars to big banks and corporations with accountability, and Maine small businesses are getting saddled with debt when extra expenses are the last thing they need,” said Willy Ritch, executive director of 16 Counties Coalition. “We need Susan Collins to fight for the small businesses that line our small-town Main Streets, not pad the pockets of her Wall Street donors.”
The PPP burned through its initial $349 billion and was recently reauthorized for $310 billion more. And while many large corporations, including Ruth’s Chris Steak House, Shake Shack, and the LA Lakers, have been able to extract millions of dollars from the program meant to aid small businesses, the majority of Maine’s small business owners have been unable to get assistance from the PPP.
IN CASE YOU MISSED IT: “Senate GOP blocks Democratic oversight bill for small-business aid”
In PPP, Senator Collins Pushed a Failed Program That Lacks Accountability and Doesn’t Deliver on Promise to Aid Maine’s Small Businesses
83% of Maine Small Businesses Have Not Received Assistance, But Large Corporations are Getting Millions
The Hill reported that Senate Republicans yesterday blocked a bill to increase oversight over the Paycheck Protection Program (PPP), which has left 83 percent of Maine small businesses without access to funds while large corporations receive millions. The blocked motion to prevent much-needed oversight of the PPP comes on the heels of the US Department of Justice’s announcement that the agency has launched an inquiry into the PPP.
“The devil is truly in the details of the PPP. The loopholes, the fine print, and the lack of accountability that Susan Collins pushed in the PPP have failed Maine’s small businesses. And if the goal of the PPP is truly to help small businesses and ensure this money is going to those who really need it, why would Senator Collins and her Republican colleagues be afraid of oversight?” said Willy Ritch, executive director of 16 Counties Coalition.
“This is a life or death situation for Maine’s small businesses, and instead of standing up for small business owners and the working Mainers they employ, like she promised she would, Susan Collins used the PPP as yet another opportunity to deliver for her billionaire donors.”
The PPP has failed to provide aid to Maine small business owners as Senator Collins promised, instead proving to be a taxpayer-funded giveaway for corporate interests. And the lack of oversight written into the bill pushed by Senator Collins is leaving the program vulnerable to fraud — and provides little recourse for fraudsters to be held accountable.
Approximately 83% of Maine small businesses have not received assistance from the PPP. And Maine small business owners who have been able to secure loans are now concerned that poor guidance and restrictions on loan forgiveness included in the fine print of the PPP will saddle their already struggling businesses with additional debt and expenses.
About the 16 Counties Coalition
The 16 Counties Coalition is a year-long grassroots advocacy campaign aimed at amplifying the voices of families and working Mainers and encouraging Senator Susan Collins to vote in favor of the people she was elected to represent and defend. The campaign will mobilize members through small- and large-scale events, through digital action, and paid television, radio, and digital ads.
