As of April 13, nearly 8,000 Paycheck Protection Program loan applications had been approved in South Dakota alone. My state has seen $1.15 billion go out to businesses facing devastating losses because of the COVID-19 pandemic.
Although the nation is facing a crisis, we can hold onto hope. The CARES Act was focused on ensuring our businesses are still there when we come out on the other side of this pandemic.
I’ve heard from dozens of local businesses and employees who are using the Paycheck Protection Program as a lifeline for their business. Josh, from Spearfish, let my office know that a local business had been able to retain its five employees because of the forgivable loan program. Erica, from Mitchell, reached out to tell me her small family business kept its 20 employees because of the loan it received. The bill wasn’t perfect, but when I hear stories like these, it drives home the fact that it was needed. The price of action is high, but the price of inaction is higher.
For weeks, I’ve been focused on simplifying the program. I fought for guidance for independent contractors and sole proprietorships who wouldn’t otherwise be eligible. Moving forward, lenders will be able to consider these businesses for Paycheck Protection Program support more confidently.
This program is saving jobs. But as of today, because of such high demand, the funds have run out. We must replenish them. President Trump has asked for an additional $150 billion to be added to this program. I support that effort. If we think about this program from a long-term perspective, it’s far better to keep people on payroll now, with jobs to go back to, than add them to the unemployment rolls.
South Dakota and the nation face unprecedented unemployment numbers. South Dakotans who have never applied for assistance in their lives are being forced to turn in an application. This situation is unlike anything we’ve ever faced, and we don’t want to create a long-term problem.
Unfortunately, approval of the additional funds the president has requested is being held up in Congress.
There are folks who will be forced to close their doors for good if Congress doesn’t extend the Paycheck Protection Program immediately. It’s not something either side should play politics over. Let’s get it done.
Dusty Johnson, a Republican, represents South Dakota’s at-large congressional district.
