President Trump has signed a nearly half-trillion-dollar emergency bill to rescue the small-business loan program, which was quickly depleted by companies impacted by the coronavirus pandemic. This legislation also provides additional funding for struggling hospitals.
The $484 billion measure offers more money for the Paycheck Protection Program, which was halted last week after dispersing all of its initial $349 billion.
This new bill provides $320 billion to revive the program, which offers loans to small businesses. Those loans can be forgiven by the government if at least 75 percent of the money goes to keeping employees on the payroll, basically amounting to grants for businesses.
Of the small-business funds, $60 billion will be set aside for community-based lenders, smaller banks and credit unions to assist smaller businesses that don’t have established relationships with big banks and had a harder time accessing the funds in the first round of loans. The measure also bolsters the Small Business Administration’s disaster loan and grant programs, which also dried up quickly.
Additionally, the legislation includes $75 billion to help overwhelmed hospitals and $25 billion for a new coronavirus testing program.
This small-business stimulus package is the fourth bill Congress has approved to counter the pandemic. More aid may be on the way, as Congressional leaders and President Trump have acknowledged that another measure likely will be needed.
Here are the earlier bills Congress has passed to counter the COVID-19 pandemic:
- March 6: $8.3 billion to find a vaccine and supplies, and to ensure that state and local health providers were prepared.
- March 18: $192 billion for paid sick and family leave, food stamp benefits and free coronavirus testing.
- March 27: $2 trillion for widespread financial relief for individuals and businesses impacted due to the economic fallout of the COVID-19 virus. This package included checks for Americans, bolstered unemployment benefits and the establishment of the PPP. It was the largest relief measure in U.S. history.
