What to Know
- Treasury Secretary Steven Mnuchin on Sunday said the White House and Congress could reach a deal today on supplemental funding for the Paycheck Protection Program for small businesses
- The $349 billion rescue loan program ran out of money on Thursday, just two weeks after it was launched to help small businesses struggling with the financial hit of the coronavirus pandemic
- The new deal will include $50 billion for disaster loans, $75 billion for hospitals and $25 billion for a federal testing program. Money for state and local governments will not be included in the package, Mnchunin said
Treasury Secretary Steven Mnuchin on Sunday said the White House and Congress could reach a deal today on supplemental funding for the Paycheck Protection Program for small businesses.
The $349 billion rescue loan program ran out of money on Thursday, just two weeks after it was launched. Republican and Democratic leaders have been struggling to agree on how to restore its funds as a slew of small American businesses are at risk of shutting down from the financial hit of the coronavirus pandemic.
Mnuchin said on CNN’s “State of the Union” that he’s hopeful the deal on another $300 billion in small business funding will be passed in the Senate on Monday and in the House on Tuesday.
The new deal will include $50 billion for disaster loans, $75 billion for hospitals and $25 billion for a federal testing program. Money for state and local governments will not be included in the package, Mnuchin said.
“I think we’re making a lot of progress,” Mnuchin said. He added that President Trump is prepared to discuss funding for state and local governments in the next bill, since this package focuses mainly on loans to small businesses, hospitals and testing.
House Speaker Nancy Pelosi said on Sunday morning that officials are “very close” to an agreement to replenish the small business fund and Senate Minority Leader Chuck Schumer said that they could strike a deal on Sunday evening or Monday morning.
Business
“Overwhelmingly, my caucus, and we’re working closely with the Senate Democrats, know that we have an opportunity, and an urgency, to do something for our hospitals, our teachers and firefighters and the rest, right now,” Pelosi said on ABC’s “This Week.”
“And then we’re preparing for our next bill,” Pelosi said. “Businesses will have the money in a timely fashion.”
The program has been criticized for providing payments to certain business including large chain restaurants. For instance, Ruth’s Chris Steak House chain, which has more than 5,000 employees, recently disclosed that it received $20 million in loans.
Many small businesses are still waiting for their banks to process an application or confirm whether they qualify for financial assistance from the PPP fund.
This story first appeared on CNBC.com. More from CNBC:
