Jim Cramer Says Paycheck Protection Program Is 'Now So Flawed'

Katherine Ross

The Paycheck Protection Program is the 7(a) loan, a lending program administered by the Small Business Administration (the SBA) in the CARES Act for small businesses.

The program, which had been initially allocated $350 billion, ran out of funding last week.

So, with many small businesses saying that they were unable to secure a loan through the initial round, Democrats and Republicans on Capitol Hill are discussing how much money to allocate in the next round of funding.

And, tie that with the news that Shake Shack is returning a small business loan of $10 million it received from the U.S. government to help it through the coronavirus pandemic after it received extra funding late last week.

But, do we need to see an outline of where the initial money went before we allocate more?

Jim Cramer joined TheStreet's Katherine Ross to give his thoughts. 

Watch the full video above for more.

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Comments (1)
No. 1-1

There is another breed of businesses that are taking undue advantage of PPP programs.
Software staffing companies where majority of employees are allowed to work from home and continuing to work have been granted loans under PPP.
I own a restaurant and received a letter from bank that my loan application is approved. Next day I get a mail saying funds are exhausted.