Mnuchin commented concerns about the economic stimulus package

Mnuchin comments

During this pandemic, president Trump considering another round of financial relief as the U.S. grapples with the current a virus pandemic Americans now waiting for stimulus checks. The Small Business Administration’s loan platform a crashing yesterday.

The nation’s largest banks saying that they had already allocated more than 10% of the funds made available under the phase through stimulus and are concerned that they will not be enough left. Some of the bankers said that the Treasury limited how the funds can be used and, as a result, that limited the program’s benefit.

U.S. Treasury Secretary Stephen Mnuchin commented on this situation on the Fox channel:

“The way this program works is you get eight weeks of pay plus you get an extra 25% for overhead, and we clarified that the money needs to be used to pay the workers. We did explain that you need to use at least 75% of the money to pay the workers so that small businesses can reopen quickly.

We’re in lockdown, and it’s only eight weeks. Congress created a new program from scratch about a week ago. The SBA created an entirely new program in less than one week.

So there are loans that will be forgiven. You can think of these as grants. The purpose of this is the president wanted to keep people hired. This keeps people off of unemployment. This makes sure that small business companies have their payroll there.

You can see from the program’s success the number of people that are walking into the banks. The banks are doing a great job. They’re just overwhelmed with the request for loans.

The whole point of this program is giving money to pay the employees, and if we need more money, we will go back to Congress.”