Small businesses will likely hit some administrative delays when applying for emergency loans under the most recent federal coronavirus relief bill, according to Sen. Ted Cruz.
The Texas Republican appeared on Fox News on Monday and said that “bureaucratic hurdles” will slow down the loans approved in a $2 trillion relief bill from getting into the accounts of small businesses.
“Are there going to be bureaucratic hurdles? Of course. Any gigantic government program is going to have bureaucratic hurdles,” Cruz said. “Any $2 trillion bill is going to have significant problems.”
The federal government has approved $377 billion to go toward small business loans that, if used to cover certain expenses such as utilities and payroll, are forgivable — meaning the recipient will not have to pay the money back.
“If you use that loan to pay for payroll and salary, to pay for rent or mortgage on your business, or to pay for utilities, that loan is entirely forgivable,” Cruz said.
President Trump signed a $2.2 trillion relief bill into law last month.
Cruz estimates results from the aid will not be measurable for several weeks or months. In the meantime, Congress and the White House are debating whether another relief package will be necessary as government restrictions and guidelines put in place to slow the spread of the coronavirus put millions out of work.
