Small business relief in danger of drying up as negotiations stall in coronavirus bill
Christal HayesWASHINGTON – Billions of dollars in additional relief for small businesses has been left in the crossfire as congressional leaders fight over what should be included in a fresh package of conoravirus aid.
At the center of the fight is $250 billion to replenish quickly evaporating funds for the Paycheck Protection Program (PPP) , a fund for small businesses. That would be added to the nearly $350 billion Congress approved last month as part of the $2.2 trillion pandemic response known as the CARES Act.
The PPP provides business owners with 500 or fewer workers low-interest loans to stay afloat. Those loans will be forgiven by the government if at least 75% of the money goes to keeping employees on the payroll.
While Republicans and Democrats agree money is needed to keep the program running, Democrats argue that it isn't the only area needing additional funds. Senate Democrats blocked the measure from quickly being passed last week, insisting that more money for hospitals and state and local governments needed to be included.
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Democrats also insisted that some strings be attached to the billions for small businesses to ensure that rural and businesses owned by minorities and women were also being helped. Republicans, meanwhile, have opposed such efforts arguing adding more provisions could open a can of worms for lengthy negotiations. Instead, Republicans say they only want to adjust the amount of funds for small businesses and take up other issues in the next legislative effort to counter the virus, which could come later this month.
"We have real problems facing this country, and it’s time for the Republicans to quit the political posturing by proposing bills they know will not pass either chamber and get serious and work with us towards a solution," House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer said in a joint statement Monday.
The pair have both talked with Treasury Secretary Steven Mnuchin about their demands and are hoping for a bipartisan compromise but the White House has already voiced opposition to including additional provisions in this small business package, which together, has left the future for the funds — which could dry up in days — up in the air.
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Senate Majority Leader Mitch McConnell, R-Ky., on Thursday criticized Democrats for blocking the legislation, explaining the money was needed to keep afloat a program that has processed more than hundreds of billions in loans to hundreds of thousands of businesses in just days of its launch. He said the sheer volume of loans meant the program would use up its $350 billion cap in a matter of days. As of Monday, more than $232 billion had been allocated out of the $350 billion.
“I want to add more money to the only part of our bipartisan bill that is running out of money," the Kentucky senator said on the Senate floor, adding that it was not time for "unnecessary wrangling or political maneuvering" by opponents.
As of Monday, the future of the bill and the funds for businesses remained uncertain.
The House announced Monday it would not meet until May 4, though the chamber could reassemble to pass additional legislation if needed. The Senate is scheduled to be back in town on April 20.
Both chambers could elect to pass the measure through unanimous consent, though the procedure would allow just one lawmaker to object and force their colleagues to return back to Washington.