WASHINGTON, April 21 — The US Senate’s top Democrat said today that a deal had been reached with the White House on pumping an additional US$300 billion into a depleted emergency program to rescue small businesses ravaged by the coronavirus crisis.
The negotiations were all but finalised on re-funding the popular Paycheck Protection Program, and the Senate could vote on the deal as early as today, Senator Chuck Schumer said.
“There are still a few more I’s to dot and T’s to cross, but we have a deal,” Schumer told CNN after staff were “up all night” finalising the huge package.
“And I believe we’ll pass it today,” he added.
The measure would then go to the House of Representatives, where leaders said a vote could come as early as Thursday, before heading to President Donald Trump for his signature.
Late last month, with shops and restaurants nationwide forced to shut down due to the coronavirus pandemic, the government launched the PPP to provide US$350 billion in what were essentially grants as long as businesses use the funds to pay their workers.
Banks were flooded with requests and the money quickly ran out.
According to Schumer, and Treasury Secretary Mnuchin, who spoke of the negotiations Sunday, the new tranche would include US$300 billion in new small business funding, plus US$75 billion for critically underfunded hospitals and US$25 billion to expand coronavirus testing.
On testing, “you need a national strategy, and the president and Mnuchin and (acting chief of staff Mark) Meadows agreed to that, to their credit. and it will be in the proposal.”
The deal also reportedly would provide for roughly US$60 billion in grants and loans for economic disaster aid.
Republicans earlier had insisted on passing a clean, straightforward measure to fund just the small business program, but Democrats successfully fought for additions.
Schumer said a substantial portion of the PPP money will be reserved for small businesses in minority and rural communities, and for those without access to large financial institutions.
The deal leaves out a key Democratic demand: extra funding for state and local governments that have been battling the pandemic, which has killed at least 42,000 people in the United States.
The White House has signalled it wants such funding included in follow-up legislation. — AFP
