Small Business Funds Stipulated In CARES Act Nearly Depleted, But Lawmakers At Impasse Over Supplementing It
Administration officials and congressional Republicans have pushed for a quick infusion of cash to keep the program going but Democrats have demanded that any legislation includes more money for health systems, food aid and testing efforts.
The New York Times:
Coronavirus Small-Business Loans Run Dry As Program Fails To Reach Hardest Hit
A new federal program to help small businesses weather the coronavirus pandemic is running out of money and falling short in the industries and states most battered by the crisis, risking waves of bankruptcies and millions of additional unemployed workers. Funding for the Paycheck Protection Program, an initiative created by the $2.2 trillion stimulus law enacted last month, could be exhausted as early as Wednesday night, meaning that the Small Business Administration would have to stop approving applications. As of Wednesday evening, more than 1.4 million loans had been approved at a value of more than $315 billion, according to the Small Business Administration. (Tankersley, Cochrane Flitter, 4/15)
The Wall Street Journal:
Small-Business Aid Program Set To Run Out Of Money
The Paycheck Protection Program was on track to exhaust most of its initial allocation of $350 billion in the early morning hours Thursday, with the Small Business Administration saying it had approved more than 1.5 million loans valued at more than $324 billion as of late Wednesday and loans were continuing to be processed. The fund needs about $10 billion to cover processing and fees, Senate Small Business Committee Chairman Marco Rubio (R., Fla.) said on Twitter. (Peterson, 4/15)
Politico:
Small Business Loan Funds Nearly Depleted With Congress Deadlocked
As of 9 p.m., the SBA reported that 1.5 million applications had been approved for more than $324 billion. In a message obtained by POLITICO, the agency began to warn banks Wednesday that lenders would no longer be able to load loan requests into the SBA's systems and that the agency would not accept applications for new lenders to participate in the program. The program neared its limit after Republicans and Democrats failed to reach a deal on a $250 billion funding increase requested by the Trump administration. (Warmbrodt, 4/16)
The Wall Street Journal:
Small-Business Aid Package Excludes Many Franchises In Coronavirus Crisis
Franchise companies that collectively provide jobs for hundreds of thousands of workers across the country are locked out of stimulus funding linked to the coronavirus pandemic because of how the Small Business Administration is interpreting the congressional relief package’s rules. The affected businesses include commercial cleaners, home-repair companies, salons and other franchise operations that the SBA says aren’t eligible for Payroll Protection Program loans in Congress’s Cares Act because of the way the franchises are structured or operate. (Bykowicz, 4/16)
CNN:
Scramble Among Businesses For Coronavirus Stimulus Loans Spills Into Court
Some businesses unable to access stimulus loans may have to keep waiting. A federal judge allowed Bank of America this week to continue its process of doling out coronavirus relief loans to its existing customers before other applicants, in one of the first notable court cases to interpret the $2 trillion stimulus bill passed by Congress last month. (Polantz, 4/15)
The Hill:
Democratic Rep Pushes For Eligibility For Coronavirus Lending Programs To Be Extended To Chambers Of Commerce
Rep. Chris Pappas (D-N.H.) is calling for federal assistance to be made available to local chambers of commerce, arguing that helping chambers remain financially solvent amid the coronavirus pandemic will play a critical role in helping businesses get back on their feet. While the third coronavirus relief package passed by Congress last month allocated $350 billion toward the Paycheck Protection Program (PPP) — which provides loans and grants to small businesses struggling with the financial fallout caused by the virus — chambers of commerce are ineligible for the program. (Brufke, 4/15)
NPR:
Counties Hit By Falling Tax Revenues Seek More Federal Help
County leaders across the country are asking the federal government for more emergency aid money as they watch tax revenues sink because of the coronavirus shutdown. The federal CARES Act passed last month includes $150 billion in direct aid to states and cities, with some caveats. Local governments with populations above 500,000 people get the money directly. (Allen, 4/15)
NPR:
Congress' Last Effort To Rescue Economy Has Parallels To Coronavirus Crisis
When Congress voted last month to approve the largest legislative package in modern history most lawmakers were already saying that the $2.2 trillion coronavirus relief bill wouldn't be enough to save the economy. Now, less than three weeks later, talks are stalled over a White House request to refill the nearly empty coffers of the small business loan program. Democrats and Republicans are sparring over when and how to pass the money they all agree must be spent. (Snell, 4/16)
Meanwhile —
Modern Healthcare:
CARES Act Direct Deposits Surprise, Confuse Specialty Physicians
Provider relief funds in the Coronavirus Aid, Relief, and Economic Security Act were originally touted as intended for hospitals and providers directly treating COVID-19 patients. But HHS interpreted the law broadly in its first, $30 billion tranche of grants to allow providers hard hit by elective procedure cancellations to qualify for relief. Specialty providers are now scrambling to make sure they are ready to meet requirements to keep the money. (Cohrs, 4/15)
