Today, the Texas Public Policy Foundation published a new paper that provides an economic analysis of the RESTART Act, a bipartisan bill working its way through Congress.
“The goal of the RESTART Act is for businesses to use the 6 months of additional funding to restart or accelerate their operations,” says the paper’s author Charles F. Beauchamp, Ph.D., CTP. “If implemented, the RESTART Act represents an assistance package that is timely and targeted at those businesses most in need and at creating jobs, and temporary in that it has a 6-month cost cap on its loan program. The act is rooted in private property rights in that the goal is to provide compensation for the cash inflow that the government indirectly took from businesses during the economic lockdowns.”
The RESTART Act seeks to provide increased flexibility to the Paycheck Protection Program (PPP) recipients. In addition, its most important and forward looking provision is a longer-term loan funding program than the original PPP designed to cover up to 6 months of payroll, benefits, and fixed operating expenses for the businesses hardest hit by the economic fallout due to COVID-19 and associated lockdowns by state and local governments.