More aid for small business in limbo
GOP lawmakers reject bill add-ons
WASHINGTON — The GOP’s congressional leaders said Saturday they would not negotiate with Democrats and instead insisted that lawmakers approve more money for a small-business lending program for those affected by the coronavirus pandemic.
Senate Majority Leader Mitch McConnell of Kentucky and House Minority Leader Kevin McCarthy of California released a statement Saturday saying they would not agree to any compromise with Democrats that changed their proposal to add $250 billion to the Paycheck Protection Program, which is being run by the Small Business Administration.
“Republicans reject Democrats’ reckless threat to continue blocking job-saving funding unless we renegotiate unrelated programs which are not in similar peril,” the statement said. “This will not be Congress’s last word on COVID-19, but this crucial program needs funding now. American workers cannot be used as political hostages.”
“American workers are in crisis,” they wrote.
Meanwhile, the IRS tweeted Saturday night that the first economic support payments have been deposited in taxpayers’ bank accounts. The agency didn’t say how many people have received the payments or
how much money has been disbursed so far.
The tweet says: “We know many people are anxious to get their payments; we’ll continue issuing them as fast as we can.”
The payments are part of the $2 trillion rescue package passed by Congress and then signed into law last month by President Donald Trump.
Anyone earning up to $75,000 in adjusted gross income and who has a Social Security number will receive a $1,200 payment. Parents will also receive $500 for each qualifying child. The payment steadily declines for those who earn more.
Also on Saturday, the nation’s governors urged Congress to send $500 billion “to meet the states’ budgetary shortfalls that have resulted from this unprecedented public health crisis.”
Republican Gov. Larry Hogan of Maryland and Democratic Gov. Andrew Cuomo of New York said that without federal intervention, states will be forced to confront “serious reductions in service … hampering public health, the economic recovery, and — in turn — our collective effort to get people back to work.”
Congress is racing to craft the new rescue package as health care providers work around the clock to care for coronavirus patients and the number of the nation’s jobless hit a staggering 16 million during the economic shutdown.
FIGHT OVER PRIORITIES
The Paycheck Protection Program, initially funded at $350 billion, was part of the $2 trillion rescue bill Congress approved late last month to deal with the economic woes of the coronavirus.
McConnell and McCarthy said the program “burned through roughly half of its initial funding in the first week.”
The program incentivizes banks to make loans to small businesses. Those loans are forgivable, meaning they don’t have to be repaid, if the companies meet certain metrics, such as job retention.
The White House has said the program proved so popular in its first week that more money was needed. It still appears that just a fraction of the nation’s 30 million small businesses are participating in the program, and many firms have complained that banks aren’t cooperating enough or providing faster assistance.
Democrats have said they don’t want to sign off on the $250 billion increase without also adding hundreds of billions for hospitals, cities and states and for food stamp recipients. They also said they want to ensure that half the proposed sum goes through community banks, emergency grants and other programs aimed at underserved communities.
Democrats blocked an attempt by McConnell on Thursday to advance the $250 billion increase, while McConnell blocked an effort by Democrats to block a competing relief bill with money for the small-business program as well as their other priorities.
But on Saturday, Republicans said the paycheck aid needs to get out the door now.
“Nobody except Washington Democrats seems to be unclear on this fact or confused about the urgency,” they wrote.
The Paycheck Protection Program has been swamped by overwhelming demand, even as lenders have griped about confusing regulations and small businesses have complained about difficulties accessing the program and actually getting the money. Speaking on Fox Business on Friday, White House economic adviser Larry Kudlow said more than 660,000 loans have been approved for a total of $168 billion.
TALK OF COMPROMISE
Trump said at the daily briefing of his coronavirus task force Friday that he was open to Democrats’ demands, which include an additional $100 billion commitment for hospitals and health care systems; $150 billion to help cities and states; and a 15 percent increase in food stamp benefits.
But Trump suggested those should come in a later recovery package, perhaps along with a payroll tax cut and an infrastructure bill, two priorities he has been pushing for some time.
“I’m certainly OK with helping the states and helping the hospitals,” Trump said, but he added that the Paycheck Protection Program is getting “swamped.”
Republicans argue that the small-business loan program is the one piece of the $2 trillion Coronavirus Aid, Relief and Economic Security or CARES Act that is in immediate need of a cash infusion, since other portions of the bill are rolling out more slowly.
The statement from McConnell and McCarthy followed comments from Democratic leaders Friday about the need for negotiations in response to the administration’s $250 billion request for the small-business loan program.
Senate Minority Leader Charles Schumer, D-N.Y., said he’d spoken with Treasury Secretary Steven Mnuchin on interim emergency relief legislation, and “There’s no reason why we can’t come to a bipartisan agreement by early next [this] week.”
House Speaker Nancy Pelosi, D-Calif., also had a conversation with Mnuchin, according to her spokesman, Drew Hammill. Pelosi reiterated the Democrats’ contention that the small-business initiative “must not solidify the disparity in access to capital faced by many small businesses in underserved areas,” and that any agreement should include money for hospitals and state and local governments.
Other Republicans were open to talks that could improve the program.
Sen. Rob Portman, R-Ohio, said in an interview Friday with The Washington Post that while he supported McConnell’s effort to boost funding for the program, he is also seeking tweaks to how it is administered — citing concerns about some businesses, such as in the hospitality and tourism sectors, that have already had to lay off thousands of employees.
Congressional negotiations are complicated by the fact that the House and Senate are both out of session because of health concerns, and although they are scheduled to reconvene in late April, it’s uncertain whether they will do so.
Without lawmakers present, the only way to move legislation is through unanimous consent or voice vote during one of the regularly scheduled and brief “pro forma” sessions that occur a couple times a week in each chamber. That requires bipartisan consensus, and gives any individual lawmaker the ability to block legislation from moving by raising an objection.