Treasury Secretary Steve Mnuchin told reporters Sunday he believes the economy will begin to bounce back sometime this summer because of the economic activity that he hopes will occur in May and June, as some states begin to reopen.
“This is an unprecedented situation. This is not a financial crisis, this is — we shut down,” Mnuchin told reporters at the White House. “The traditional economic models may work. They may not work.”
“What I do think is, as we open up the economy in May and June, you will begin to see the economy bounce back in July, August, September,” Mnuchin added. “And my expectation is that you’ll see an increasing rate of growth in those three months.”
The Small Business Administration ran out of money for the Payment Protection Program, which loans money to small businesses, soon after it began.
A second round of money will be available Monday after Congress passed an extension last week. When asked in an interview on “Fox News Sunday” how long the additional funds will last, Mnuchin said he hopes “we run out of money quickly so we can get the money into worker’ pockets.”
He added that in this second round of funding for the PPP, the average loan size for companies will go down “significantly.” Mnuchin also said that officials are working with new guidelines to try and ensure that funds are distributed fairly to small businesses.
When asked by Fox’s Chris Wallace about additional funding to state and local governments that Democrats have been pushing for, Mnuchin said “we will consider” that in the next coronavirus stimulus bill, but noted that “this is a war, we will win this war, if we need to spend more money we will and we will only do it with bipartisan support.”