USA TODAY International Edition
Senate OKs $ 484B boost to aid small businesses
Measure revives fund for paycheck protection
WASHINGTON – The Senate approved a measure Tuesday that will revive a stimulus program geared to keep small businesses from shuttering and their employees from going on unemployment because of the economic damange from the coronavirus pandemic.
The nearly half- trillion- dollar measure, which was approved through voice vote, would provide more money to the Paycheck Protection Program, which was halted last week after it ran out of money.
The $ 484 billion bill would inject the program, which provides loans to small businesses, with more than $ 320 billion. Of that, $ 60 billion would be set aside for community- based lenders, smaller banks and credit unions to assist smaller businesses that don’t have established relationships with big banks and had a harder time accessing the funds in the first round of loans. About $ 10 billion of that would also be allocated for administration fees.
The measure would also bolster the Small Business Administration’s disaster loan and grant programs, which dried up during the coronavirus crisis.
The legislation includes $ 75 billion to help overwhelmed hospitals and $ 25 billion for a new coronavirus testing program, two provisions Democrats pushed for in negotiations. Senate Minority Leader Chuck Schumer, D- N. Y., said the testing funds were one of the last pieces agreed on and requires the administration report a national strategic testing plan on how it will increase testing across the country.
The legislation will now head to the
House, where it’s scheduled to be taken up Thursday. The House is expected to pass the measure; it would then head to President Donald Trump for approval.
Congressional leaders and the Trump administration haggled for weeks over details in the plan before coming to an agreement Tuesday. Treasury Secretary Steven Mnuchin asked Congress this month for an additional $ 250 billion in emergency funds to bolster the program. Democrats objected to the Republican offer, demanding more money for hospitals, state and local governments and food stamp benefits.
Congressional Republicans blamed Democrats for the funding lapse, arguing that they held hostage money desperately needed for businesses and workers.
“I am encouraged that Democratic leaders have finally agreed to reopen the Paycheck Protection Program and abandon a number of their unrelated demands,” Senate Majority Leader Mitch McConnell, R- Ky., said in a statement Tuesday after the two sides reached a deal. “Republicans never wanted this crucial program for workers and small businesses to shut down. We tried to pass additional funding a week before it lapsed. But Democratic leaders blocked the money and spent days trying to negotiate extraneous issues that were never on the table. I am grateful our colleagues have walked away from those demands and will finally let Congress act.”
Democrats applauded the new bill, which nearly doubled in size.
“Congressional Democrats are proud to have secured an agreement on an interim emergency funding package that has been transformed to provide real support for the lives and livelihoods of the American people,” House Speaker Nancy Pelosi and Schumer said in joint statement. “Democrats flipped this emergency package from an insufficient Republican plan that left behind hospitals and health and frontline workers and did nothing to aid the survival of the most vulnerable small businesses on Main Street.”
Trump signaled he’s ready to sign the agreement.
“I urge the Senate and House to pass the Paycheck Protection Program and Health Care Enhancement Act with additional funding for PPP, Hospitals, and Testing,” Trump said in a tweet Tuesday. “After I sign this Bill, we will begin discussions on the next Legislative Initiative with fiscal relief to State/ Local Governments for lost revenues from COVID 19, much needed Infrastructure Investments for Bridges, Tunnels, Broadband, Tax Incentives for Restaurants, Entertainment, Sports, and Payroll Tax Cuts to increase Economic Growth.”
The program was provided $ 349 billion as part of the economic stimulus package approved in March. It launched April 3 and processed 1.6 million loan application before money ran out on Thursday.
The bill would inject the Paycheck Protection Program with more than $ 320 billion. The measure would also bolster disaster loan and grant programs that have dried up amid the pandemic.