Trump's Small Business Bailout Already Out Of Money? Top Advisor Says Paycheck Protection Program To Go Dry By Week's End

White House economic adviser Larry Kudlow said Tuesday the $349 billion small business paycheck protection program fund could be depleted by Thursday. The comments came has the Senate extended its recess into May without acting on a supplemental relief package.

Kudlow told Fox Business Network the paycheck protection program could run out of funds by the end of the week.

“At the present run rate, we will be out of money,” Kudlow said, noting 1 million loans totaling $250 billion already had been approved. “Checks are going out. … The money is flowing.”

He added: “In two weeks, we’ve executed the largest rescue plan in American history. … The burn rate will get us out before the week is over.”

The $2.2 trillion coronavirus relief package set aside $349 billion for small businesses to encourage them to keep employees on the payroll. The loans are to be forgiven after the crisis as long as the money is used for payroll and other expenses like utilities.

There have been reports, however, that banks are making it difficult for businesses to obtain the loans.

“Banks are playing themselves. They’re being banks and they’re trying to determine if the credits are good and that’s leading to a lot of small businesses that are left out in the cold,” billionaire Mark Cuban told CNBC.

“I’ve tried to call the banks and say, ‘No, that’s not the point behind the [Paycheck Protection Program] loan.’ This is not about that. This is a guarantee by the government and this is supposed to turn into a grant if you retain all your employees,” he said, adding, ““This is a hurry-up environment where we need to get money in small business’ hands so that they can retain their employees.”

The administration has asked Congress to add $250 billion to the program, but Senate Democrats blocked a bill focused on that request because it did not contain additional funds for the unemployed, medical facilities and local governments. Democrats also want funds set aside for businesses that do not have banking relationships. Republicans said they have no plans to negotiate.

“President Trump, [Treasury] Secretary [Steven] Mnuchin, and Senate and House Republicans simply want to add more funding for this job-saving program that both parties designed together. There is no time to insist on sweeping renegotiations or ultimatums about other policies that passed both houses unanimously," McConnell said.

Neither the House nor the Senate now is scheduled to return to Washington before May 4. Both houses are operating in pro forma sessions, which means any legislation would need to pass by unanimous consent, meaning a single lawmaker can block legislation.

In the meantime, Kudlow said the White House is looking beyond the pandemic toward reopening the economy.

“We want to get folks back to work … as quickly as possible,” Kudlow said, adding, “It has to be safe, driven by the data. … It’s a question of health. It’s a question of safety.”

About 17 million Americans have filed initial claims for unemployment insurance in the past three weeks and more are expected to be added to the rolls when the next report comes out Thursday.

Kudlow said he believes Trump will announce a plan for restarting the economy in coming days and that it will involve a “rolling reentry.”

“We believe the country is ready to get back to work,” Kudlow said.