Democrats want terms on new financing for small business loans

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Speaker Nancy PelosiNancy Pelosi: We have to be “One America,” polls say – and politicians should listen to the Florida Democrat hitting the administration over the deployment of small business loans. The Hill’s Coronavirus Report: interview with Dybul; Boris Johnson update PLUS (D-California) suggested Tuesday that Democrats would impose conditions on new financing for small business loans amid the coronavirus pandemic to ensure that minorities and underserved communities are not excluded from the program.

secretary of the treasury Steven MnuchinSteven Terner MnuchinOn The Money: Trump officials struggle to get emergency loans through the door | Dow Rises Over 1600 Points | Kudlow Says Authorities Plan To Offer Coronavirus Bonds Trump Officials Difficult To Obtain Coronavirus Relief Loans Kudlow Says Administration Plans To Offer Coronavirus PLUS Bonds met with congressional leaders from both parties, including Pelosi, on Tuesday morning to invest an additional $ 250 billion to help small businesses weather the crisis with their workforce intact. And the majority leader in the Senate Mitch McConnellAddison (Mitch) Mitchell McConnellFlorida Democrat Hits Administration Over Deploying Small Business Loans The Hill’s Coronavirus Report: Interview with Dybul; Boris Johnson’s Schumer Update Says Nation Will “Definitely” Need New Coronavirus Relief Law (R-Ky.) Wants to travel on Thursday to adopt the new funding.

Pelosi supported the idea, saying that the $ 350 billion for the paycheck protection program (PPP) included in the latest coronavirus rescue package is insufficient to meet demand. But she suggested that House Democrats don’t just approve additional funds without the assurance that small businesses in underserved communities will benefit.

The PPP “really needs money immediately, we know it, because of the demand,” she said in an interview with Anderson Cooper of CNN. “We have no data, however. We don’t know much about who is served, who is underserved. “

“And so when the secretary called this morning to ask for additional funds, we were like … we want to make sure that the program is administered so as not to consolidate the inequalities in people’s access to capital,” he said. she declared. added.

To gain the support of Democrats, the President wants to guarantee that the funds will benefit “all those who are entitled to them.”

“So we want to have some considerations if we are to go ahead with this,” she said.

Pelosi did not specify what guarantees the Democrats will seek. But Sen. Ben cardinBenjamin (Ben) Louis CardinDemocratic senator asks Pompeo to stop saying that the “Wuhan virus” plans a rescue plan for small businesses which should reach 0 billion or more McConnell sets the deadline for Friday evening for a bipartisan agreement on PLUS stimulus measures (Md.), The Senior Democrat on the Senate Small Business Committee, expressed concern Tuesday that the banks in the early stages of the program have facilitated loans intended primarily for their existing customers.

“This leaves poorly served or very limited access to these vital funds to underserved communities,” he wrote to Mnuchin and Jovita Carranza, who heads the Small Business Administration.

Democrats want eligible businesses owned by women, veterans and minorities to participate. And Pelosi has extended these concerns to include financial institutions that process loans.

“We also really need to make sure … that all the banks that can participate can do it,” she told CNN. “Not just the reputable ones, but also community banks, minority banks and the like. “

Created as part of the $ 2.2 trillion coronavirus rescue bill passed late last month, the PPP is designed to save small businesses devastated by the pandemic. Tens of thousands of stores across the country have been ordered to close as state and local leaders seek to prevent the spread of the virus.

Congress has already applied conditions to the initial aid of $ 350 billion. To operate the fund, for example, companies must keep the vast majority of their employees on the payroll – a stipulation that Mnuchin pointed out Tuesday morning.

“We have made it clear that you must use at least 75% of the money to pay workers,” he told Fox News, “because the goal of this program is to keep 50% of Americans back to work.” so that small businesses can reopen quickly. “

The rest of the funds can be used to cover other overhead costs such as rent or mortgage payments.

The program has faced problems from the start, as banks grumbled over the lack of administrative guidelines and businesses in the country flooded the application system. Leaders of the two sides have acknowledged that the initial $ 350 billion will not be enough to meet this demand, and Mnuchin said President TrumpDonald John TrumpNight Health: The United States Hits 10,000 Coronavirus Deaths | Trump touts “friendly” conversation with Biden over response | Trump dismisses report of hospital shortages as “just plain wrong” | Cuomo sees possible signs of flattening curve in NY We must be “One America,” poll says – and politicians should listen to Barr tells prosecutors to consider coronavirus risk when determining bail: PLUS report approved the additional $ 250 billion.

McConnell vows to act quickly, hoping to adopt the additional funds by unanimous consent at the next chamber meeting on Thursday.

“Congress must act with speed and focus to provide more money for this controversial bipartisan program,” he said.

Pelosi and the Democrats are also developing a much larger coronavirus rescue program, which will include more funds for unemployment insurance, food stamps, direct cash payments, essential medical supplies and medical supplies. expansion of broadband in underserved regions. In a call to the Democrats on Monday, Pelosi set the price of the legislation at over $ 1 trillion.

Democrats have insisted on certain oversight protections to accompany massive emergency spending, including the appointment of a group of independent inspectors general to monitor the $ 2.2 trillion finance bill.

Trump sparked a rage on Tuesday when he removed the group’s leader, Glenn Fine, former Interim Inspector General of the Pentagon, and replaced him with Sean O’Donnell, the IG’s protection agency. the environment.

Pelosi wasted no time blowing the switch, accusing Trump of appointing “loyalists” as watchdogs to manage the funding with virtually no oversight.

“The president thinks he should be the one [watching over the stimulus money] and it’s exactly upside down, “she told CNN.

Scott Wong contributed.



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