$450 Billion in Loans for Main Street

$450 Billion in Loans for Main Street

Issue 15

04.20.20 - Lawmakers and the White House are close to reaching a deal on a $450 billion agreement that would replenish a program for small businesses impacted by the coronavirus and correlated shutdowns. Treasury Secretary Steven Mnuchin said on Sunday that he was hopeful that the two sides would soon reach a deal. House Majority Leader Steny Hoyer has given notice that members of the house may be voting as early as Wednesday.

The deal would send about $310 billion more to the Paycheck Protection Program which has burned through the previous $350 billion already allocated for it. It would also include $75 billion in hospital assistance and $25 billion to expand testing for the virus across the country. Expanding funding for small businesses had previously been blocked.

The PPP for small businesses was created as a part of the $2.2 trillion rescue bill in an attempt to thwart off mass layoffs as the world economy has slowed to a crawl. Businesses that use the loans to keep employees on the payroll can have the debt forgiven. A large portion of the money being allocated will be set aside specifically for businesses that are struggling to receive loans from financial institutions as well as funding to be allocated towards Economic Injury Disaster Loans.

Source: Wall Street Journal, New York Times