Tuesday, 21 April 2020 22:58

What's in the Nearly $500 Billion Deal to Protect Small Business from Coronavirus Fallout

Written by Ben Werschkul, Yahoo! Finance


The White House had already made an “an unprecedented investment in testing,” Mnuchin said April 19. He also signaled that testing will likely be a big feature of the Phase 4 deal, with provisions to be considered around technology and testing, but said Trump “wants to get this over the finish line.”


$60 billion for the SBA’s Economic Injury Disaster Loan program


The deal includes money for another Small Business Administration lending program, called Economic Injury Disaster Loans (EIDL).


This program is designed to provide loans as well as up to $10,000 in immediate cash advances to businesses. The SBA reported that, as of April 20, it had given out nearly $3.3 billion in EIDL grants and $5.5 billion in loans.


The SBA currently has a message on its website saying it can’t accept new applications due to a lack of funding.


One hundred U.S. Representatives---50 Republicans and 50 Democrats---recently sent a letter to push for this funding, noting that many businesses are especially in need of EIDL funds because they are “not good candidates for the PPP due to its requirements or are not eligible for that program at all.”


$75 billion for hospitals


Democrats initially asked for $100 billion for hospitals and health care systems; the final deal includes $75 billion, according to Schumer. This comes on top of $100 billion already allocated for hospital and public health funding in the CARES Act.


The bill specifies that the funds can be used both to respond to coronavirus and also help make up for “lost revenues that are attributable to coronavirus.”


Mnuchin described the deal as focused both on hospitals overwhelmed with coronavirus cases, as well as hospitals that have been impacted because of the ban on elective surgery.


Trump suggested hospitals may soon get new guidance from Washington about opening up, where appropriate, to a wider range of procedures. “A lot of hospitals were closed, they couldn't do any elective surgeries,” he said April 19, adding “they'll be able to start doing that.”


Democrats also sought to provide funding for cities and states in this legislation. That was not included in the end; however, Trump has repeatedly said he is in favor of more money for states, and tweeted it would be part of the next negotiation alongside issues like infrastructure spending and tax cuts.


Cuomo said he thought it was a "terrible mistake" not to provide the funding for states in this deal.


Lawmakers hope the current deal will pass both chambers of Congress by April 23 and be signed into law by Trump by the end of the week.


We thank Yahoo! Finance for reprint permission.

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