MONTGOMERY, Ala. (WBRC) - Governor Kay Ivey released a statement Monday urging Congress to put more money into the Paycheck Protection Program.
The program, which ran out of money Thursday, provided loans at ultra-low interest rates to businesses with fewer than 500 employees to incentivize them to keep staff on payroll or rehire workers who have already been laid off as a result of the virus outbreak.
If at least 75 percent of the money goes to keep employees on the payroll, the federal government will forgive the loans.
Governor Kay Ivey on the program: “In Alabama, small businesses are the backbone of our economy. COVID-19 has had unavoidable, devastating consequences on our small businesses, but what is also unavoidable is Congress’ duty to protect this important sector of our American economy. My Office and I are staying in conversation with our Alabama delegation members and are discussing with them that as we work to combat COVID-19, this critical program is helping our small businesses across Alabama. Financial institutions have made close to 28,000 Paycheck Protection Program loans, totaling around $4.9 billion here in Alabama. I join President Trump, Leader McConnell, Leader McCarthy and small businesses across Alabama and around the country desperately in need of this assistance in urging Democrats to immediately replenish the Paycheck Protection Program. I look forward to Congress taking action this week. Alabama small businesses, I stand with you. We will get through this together.”
Governor Ivey and state leaders are in the process of working to reopen the state. Lt. Gov. Will Ainsworth released guidelines last Friday.