Senate approves measure to replenish small-business loan program

Senate approves measure to replenish halted coronavirus small-business loan program
Christal Hayes, USA TODAY • April 21, 2020

WASHINGTON – The Senate approved a measure Tuesday that would revive a program geared to keep small businesses from shuttering and their employees from going on unemployment because of the economic impacts of the coronavirus pandemic.

The nearly half-trillion-dollar measure, which was approved through voice vote, would provide more funds 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. If approved, it will head to President Donald Trump for approval.

"We've had tremendous support for the PPP," Treasury Secretary Steven Mnuchin said at the White House on Tuesday. He promised the program would be "up and running" again soon after it passes both chambers and is signed by Trump. He estimated that the program has saved 30 million jobs.

Congressional leaders and the Trump administration haggled for weeks over details in the plan before coming to an agreement Tuesday. Mnuchin asked Congress this month for an additional $250 billion in emergency funds to bolster the program. Democrats objected to the GOP offer, demanding more money for hospitals, state and local governments and food stamp benefits.

Congressional Republicans blamed Democrats for the funding lapse, arguing 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 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 the amount of funds being spent. They also noted that an additional relief measure was still being worked on, something the White House has also signaled support for.

"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."

'He didn't understand': Trump slams Republican Gov. Larry Hogan, outspoken critic on testing

The program was originally provided $349 billion as part of the massive economic stimulus package approved in March. It launched April 3 and processed 1.6 million loan application before funds ran out on Thursday.

Hundreds of House lawmakers are expected to return to Washington on Thursday to ensure the measure passes quickly, as several members have aired grievances with details in the bill. On Thursday, the House is also expected to vote on a change in its rules that would allow lawmakers to vote by proxy, a process that would allow another lawmaker to vote on their behalf to prevent travel and risking further spread of the coronavirus.

APRIL 23, 2020 / 7:01 AM / UPDATED AN HOUR AGO
U.S. House passes $500 billion coronavirus bill in latest relief package
Patricia Zengerle, Susan Cornwell


WASHINGTON (Reuters) - The U.S. House of Representatives overwhelmingly approved a $484 billion coronavirus relief bill on Thursday, funding small businesses and hospitals and pushing the total spending response to the crisis to an unprecedented near $3 trillion.

The measure passed the Democratic-led House by a vote of 388-5, with one member voting present. House members were meeting for the first time in weeks because of the coronavirus pandemic.

Lawmakers, many wearing masks, approved the bill during an extended period of voting intended to allow them to remain at a distance from one another in line with public health recommendations.

The House action sent the latest of four relief bills to the White House. Republican President Donald Trump, who backs the measure, said he would probably sign it into law on Thursday evening.

The Republican-led Senate had passed the legislation on a voice vote on Tuesday. But threats of opposition by some members of both parties prompted congressional leaders to call the full chamber back to Washington for the House vote despite state stay-at-home orders meant to control the spread of the virus.

The House also approved a select committee, with subpoena power, to probe the U.S. response to the coronavirus. It will have broad powers to investigate how federal dollars are being spent, U.S. preparedness and Trump administration deliberations.

Democratic House Speaker Nancy Pelosi said the panel was essential to ensure funds go to those who need them and to prevent scams. Republicans said the committee was not needed, citing existing oversight bodies, and called the panel’s creation another expensive Democratic slap at Trump. The committee was approved on a vote of 212-182, along party lines.

The $484 billion aid bill was the fourth passed to address the coronavirus crisis. It provides funds to small businesses and hospitals struggling with the economic toll of a pandemic that has killed almost 50,000 people in the United States and thrown 26 million out of work, wiping out all the jobs created during the longest employment boom in U.S. history.

A handful of lawmakers opposed the legislation, including Democrat Alexandria Ocasio-Cortez, who represents a severely affected area of New York and believes Congress should do even more - and Republican Thomas Massie, known as “Mr. No” for his frequent opposition to spending bills.

“This is really a very, very, very sad day. We come to the floor with nearly 50,000 dead, a huge number of people, and the uncertainty of it all,” Pelosi said during debate on the bill.

Congress passed the last coronavirus relief measure, worth more than $2 trillion, in March, also with overwhelming support from both parties. It was the largest such funding bill ever passed.

TROUBLE AHEAD
The next step will be harder. The two parties have set the stage for a fight over additional funding for state and local governments reeling from the impact of lost revenue after Republicans refused to include such funds in the current relief bill.

Trump has said he supports more funding for states, and has promised to back it in future legislation.

Congressional Republicans have resisted. Senate Majority Leader Mitch McConnell suggested in a radio interview on Wednesday that states could go bankrupt, but said later he did not want states to use federal funds for anything unrelated to the coronavirus.

Democrats castigated McConnell for the remark. “Leader McConnell said to our cities and states, to our cops and firemen and teachers, he told them to drop dead,” said Representative Max Rose, who represents a district of New York City.

Thursday’s voting took place under safety protocols that considerably dragged out proceedings. Lawmakers came to the House in alphabetical order in small groups and were told to stand in line, 6 feet (1.8 m) apart, before entering the chamber.

There was also a half-hour break scheduled to clean the chamber between the two votes. But more than a dozen cleaners descended on the chamber with cloths and spray bottles and wiped it down in less than 10 minutes.

Echoing Trump, many Republicans also want the country - including Congress - to reopen quickly. Republican Representative Ralph Norman of South Carolina said lawmakers should “get our businesses to open the doors and do what Americans have always been allowed to do, which is go to work.”

House Republican leader Kevin McCarthy said the latest aid package should have been passed at least two weeks ago after the Trump administration requested it. “Some people unfortunately got laid off because of this delay,” McCarthy said.

Democrats rejected the charge, saying lawmakers had improved on Trump’s request by adding billions of dollars more for small businesses, hospitals and coronavirus testing.