After torpedoing a Thursday vote to increase small-business funding under the Paycheck Protection Program, Senate Democrats proposed an interim coronavirus relief package that they argue will address the “immediate issues” facing local and state governments, hospitals and small businesses.
Sen. Ben Cardin, D-Md., said Thursday on the Senate floor that Senate Majority Leader Mitch McConnell, R-Ky., and the Trump administration proposed additional appropriations via an interim solution “solely” for the Paycheck Protection Program, created by the Coronavirus Aid, Relief and Economic Security (CARES) Act.
McConnell sought a unanimous consent vote on $250 billion in additional funds for the PPP, indicating it has run out of money, Cardin said. “It hasn’t. Thirty percent has been committed, but the funds have not been released.”
Programs that are running dry under the CARES Act include the Emergency Economic Disaster Loan (EIDL) Program. In addition to loans, the program provides emergency grants up to $10,000 for small businesses, Cardin said.
“The Small Business Administration needs money today in order to process EIDL applications; the SBA doesn’t need money today to process applications for the Paycheck Protection Program,” Cardin stated.
Senate Democrats’ plan would provide $15 billion for EIDL.
Private Equity Wants PPP Loans, Too
Rep. Josh Gottheimer, D-N.J., wants the “affiliate rule” that prevents certain private equity and venture capital backed firms from receiving Paycheck Protection Program loans under the stimulus law to be waived.