It has been reported on multiple occasions that Michigan is among the hardest-hit states so far in the coronavirus pandemic, with the governor pointing out repeatedly that while we are the 10th most populous state, we rank third in the nation in deaths attributed to COVID-19. Yet, when the SBA delivered Paycheck Protection Program payments to small businesses, Michigan ranked in the bottom third of all states in the country.
With that backdrop, a number of lawmakers from the Great Lakes State have dispatched a letter to the U.S. Small Business Administration expressing alarm over the rate at which Michigan’s small business community is being covered.
A letter penned back on Sunday to the SBA’s Administrator was signed by a number of Democrats in the Michigan Congressional delegation including Dan Kildee, Debbie Dingell, Brenda Lawrence, Andy Levin, Haley Stevens, Elissa Slotkin and Rashida Talib along with the two U.S. Senators from Michigan, Debbie Stabenow and Gary Peters.
Collectively, they write, “As members of Michigan’s congressional delegation, we write to express concern that our state, despite being one of the hardest-hit states in this pandemic, currently ranks in the bottom third of states receiving small business loans under the PPP compared to the number of businesses that are eligible.”
The CARES Act had set aside $349-billion for the Paycheck Protection Program, and more than a million loans have been processed. Nevertheless, out of all 50 states in the union, Michigan ranks 35th on the list of approvals, despite the huge impact of the coronavirus in the state.
The delegation expressly asks what the SBA will do to ensure that hard-hit states like Michigan will garner a proportional share of relief in any subsequent rounds of additional help forthcoming from the federal government.
The letter notes, “Since the PPP began, we have heard from small businesses in Michigan about problems accessing the program, including from under-served communities in rural and urban areas,” and adds, “The SBA data on loans processed to date seems to confirm some of these challenges.”
The delegation asks for a prompt response, and pledges to continue to work with the SBA to “support America’s small businesses and their workers.”
You can read the entire letter which is linked below:
