Press Releases

Miami, FL U.S. Senator Marco Rubio (R-FL) released a statement following reports the Biden Administration will make numerous changes to the Paycheck Protection Program.
 
“The Paycheck Protection Program provided a critical lifeline to small businesses and their employees over the last 11 months,” Rubio said. “No other federal relief program has done more to help our smallest businesses, especially those in underserved and under-banked communities. I urge the Biden Administration to work with Republicans and Democrats in Congress as it considers changes to this incredibly successful and overwhelmingly bipartisan program.”
 
Last year, as Chairman of the U.S. Senate Committee on Small Business and Entrepreneurship, Rubio co-authored the historic Paycheck Protection Program and led the authorization of nearly $1 trillion in small business relief, including over $800 billion for PPP during the coronavirus pandemic. The first round of assistance aided 5.2 million small businesses and saved up to 51 million jobs. Former CBO Director Doug Holtz-Eakin called PPP “the single most effective fiscal policy ever undertaken by the United States Government.”
 
In a 2,900-word Medium piece, Rubio explains how the “Paycheck Protection Program was one of the most significant financial supports for minority-owned businesses ever created.” 
 
Recognizing the challenges that remain due to past discrimination against racial and ethnic minorities, the U.S. government has for years funded programs, often at insufficient levels, like the Community Development Financial Institutions (CDFIs) Fund, SBA Microloan, and SBA 7(a) Community Advantage programs, that are designed to promote access to capital for under-served communities. PPP leveraged these existing tools to expand their reach to an historic level. The capital lent by CDFIs and Minority Depository Institutions (MDIs) through PPP was more than the total amount of capital guaranteed by the government during the last decade through these programs combined.
 
The heroic work by CDFIs and other community and mission-based lenders appears to have paid off. To help measure these equity considerations, the SBA collected voluntary demographic information about recipients of PPP from loan applications. Though the response rate was lower than we would like, this survey provides the most solid information provided to date about the distribution of PPP loans. The fact is that the best data available indicate that minority-owned businesses received PPP loans at a higher rate than their share of business ownership in the economy would have otherwise indicated.