Senate Dems block latest coronavirus relief package

WASHINGTON – Senate Democrats on Thursday blocked a Republican effort to add $250 billion to an overwhelmed small business loan program, the latest political standoff in the weeks-long effort to pump trillions of federal dollars to businesses and families dealing with the fallout of the coronavirus pandemic.

Senate Majority Leader Mitch Mcconnell, R-KY., tried to approve $250 billion in new funding for the Paycheck Protection Program during a brief Senate session through a fast-track method that requires no objection from senators.

There is widespread, bipartisan support to add money to the small business program. But Democrats say they won’t agree to the new spending unless there are safeguards to ensure all businesses can access the capital, including directing some of the money to small banks. They also wanted to add $100 billion for the healthcare system, and $150 billion for state and local governments.

Congress already approved $350 billion for the paycheck program – money that is quickly running out as small businesses have flooded local banks to apply. Earlier this week, Treasury Secretary Steven T. Mnuchin requested that congressional leaders approve the additional funding.

Democrats objected to the resulting legislation proposed by Mcconnell and Mcconnell objected to the Democrats’ counterproposal, leading to the current stalemate.

Mcconnell accused Democrats of holding Americans’ paychecks “hostage.”

“Do not block emergency aid you do not oppose just because you want something more,” he said to Democrats, adding that there was “no chance” the Democrats’ plan would pass the Senate quickly.

Sen. Ben Cardin,

D-MD., the top Democrat on the Senate committee overseeing small business, called Mcconnell’s proposal “a political stunt because it will not address the immediate need of small business.”

Democrats say the small business program is structured on a firstcome, first-served basis that benefits small businesses with existing relationships with their banks. Very small businesses have been unable to access it, they say.

“Many unbanked people (or those) who are under-banked are unserved on that basis,” said House Speaker Nancy Pelosi, D-calif., in an NPR interview Wednesday. “For the next $250 (billion), we really need to have a percentage of that, $60 billion, that would go to something called community development financial institutions and that includes a number of things that they would open the way for others to participate.”