Bank executives who were concerned about the $349 billion emergency small business program created in the $2.2 trillion coronavirus stimulus bill passed last week reached out to President Trump’s daughter and senior adviser Ivanka Trump as they tried to negotiate higher interest rates, according to Bloomberg.
The calls came from multiple major bank executives, including from Bank of America Corp., who questioned the Paycheck Protection Program (PPP), which provides generous loans to small businesses with the caveat that they use at least 75 percent to pay their employees.
As a result of those negotiations, Treasury Secretary Steven Mnuchin and other administration officials requested to increase the interest rates on the forgivable, government-backed loans, and worked to encourage smaller banks to participate, as well.
Mnuchin announced Thursday that the Treasury Department would cut interest rates in half in an effort to convince those smaller banks to participate and alleviate the load from major lenders.
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JUST IN: Bank executives sought guidance on small business loan program from Ivanka Trump: report https://t.co/fzukId8dMe pic.twitter.com/i9GGalL9y6
— The Hill (@thehill) April 3, 2020
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