April 08, 2020
Congress Eyeing Additional Coronavirus Relief
The emergency aid package would include $250 billion more to shore up the quickly depleting forgivable small business loan program set up in the CARES Act.
Congress may vote on an emergency relief package of at least $500 billion on Thursday, April 9, with funds to help small businesses, hospitals, states and food assistance programs. Half of the money would go toward replenishing the Paycheck Protection Program (PPP), the forgivable small-business loan program that was launched to a rocky start by the Small Business Administration late last week.
The $349 billion PPP is part of the unprecedented $2.2 trillion CARES Act, passed last month, which also expanded unemployment benefits, and set up one-time stimulus payments for individuals, among other provisions. The program allows small businesses with fewer than 500 employees to apply for an SBA-backed loan of up to $10 million with their lenders; owners would not have to pay the loans back if they use the money for payroll and meet certain other requirements. Since the program began on Friday, April 3, it’s already given out about $70 billion, according to The Washington Post. The window for applying for the loans doesn’t close until June 30.
Treasury Secretary Steve Mnuchin spoke to Congressional leaders on Tuesday asking for $250 billion to shore up the PPP program.
At the direction of President @realDonaldTrump, I've spoken with @SenateMajLdr, @SenSchumer, @SpeakerPelosi, and @GOPLeader to secure an additional $250 billion for the #PPPLoan program to make sure small businesses get the money they need!
— Steven Mnuchin (@stevenmnuchin1) April 7, 2020
Meanwhile, Senate Majority Leader Mitch McConnell has indicated that there could be a vote on Thursday for the $250 billion. House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer released a joint statement that expressed support for that additional funding, but with some conditions and additions.
Half of the $250 billion in business loans should go to community lenders, rather than big banks, they said. The Democrats also want $100 billion for coronavirus tests and protective medical gear to help hospitals and health centers, as well as $150 billion for state and local governments battling the spread of the virus. In addition, Pelosi and Schumer are looking for a 15% increase in the Supplemental Nutrition Assistance Program benefit.
The Democrat leaders say this emergency aid would be separate from the CARES 2 Act they hope to pass in the near future. “CARES 2 must provide transformational relief as the American people weather this assault on their lives and livelihoods,” Pelosi and Schumer said in their statement.