Sen. Tim Scott calls on Pelosi to stop holding small businesses 'hostage' as economy faces 'period of devastation'

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Sen. Scott on why Congress must replenish funds for Paycheck Protection Program

South Carolina Senator Tim Scott joins ‘Sunday Morning Futures.’

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Sen. Tim Scott, R-S.C., member of the White House Task Force on Reopening the Economy, called on Democratic leadership to move forward and reach an agreement with Republicans to add funding to the Small Business Administration’s Paycheck Protection Plan (PPP) while noting that certain limitations on the coronavirus stimulus plan may need to be adjusted.

Scott said that the economy, especially in his home state of South Carolina, is in a “position of devastation” due to the pandemic, and that action is needed to lift the country up as Americans hope for a recovery.

SCHUMER DEFENDS ADDING DEMANDS TO SMALL BUSINESS RELIEF BECAUSE THEY 'ARE NOW GOING INTO THE BILL'

“We are in a position of devastation,” Scott said, pointing to his home state of South Carolina, where he said there has been a 4,000 percent increase in unemployment benefits since the outbreak began. He explained that the lasting impact of poverty is part of President Trump’s concern in balancing public health with economic needs as the administration addresses how life can eventually return to normal.

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Scott said that he supports the PPP, which allows small businesses to stay afloat and pay their workers during the shutdown, but said Democrats need to allow additional funding for the program to go through without holding it up by requiring that additional demands be met.

“I always like to say that the Democrats who are holding this up, realize you’re not negatively impacting businesses as much as you’re negatively impacting people’s ability to pay their rent, to pay their utilities, to feed their kids. And this is a serious situation that we should not have a lapse in funding for the Triple P program. We should tell Ms. Nancy Pelosi, ‘Please give us our paychecks.’ People need their paychecks, and stop holding it hostage in order to do something else.”

Senate Minority Leader Chuck Schumer, D-N.Y., justified Democrats' insistence on including additional provisions in the legislation Sunday, stating that "the very things we Democrats have been fighting for are now going into the bill."

Scott also noted that businesses such as restaurants will face a new burden by not being able to use their space as effectively due to social distancing concerns, while their labor costs may remain the same or decrease. He said the current requirement that 75 percent of money for business received from the PPP going towards payroll to be forgiven may be too much.

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“So if you have a program that requires 75 percent of the money to go to payroll and 25 percent for overhead, that will not work. The new normal may require businesses to have higher overhead expenses and lower labor costs. We need to adapt to that reality, and we need to adapt very quickly.”