Legislators have now agreed to add another $ 310 billion to the fund. How quickly this second tranche of money would be available is not yet clear. Once the bill is incorporated into the law, it would likely take another day for the SBA to reopen the program, according to a banking industry source.
$ 60 billion for small lenders and community banks
The new deal provides $ 30 billion in additional funds from the Paycheck Protection Program for loans granted by federal insured lenders with assets between $ 10 and $ 50 billion. And it would reserve another $ 30 billion for loans from community financial institutions, as well as small federally insured banks and credit unions with assets of less than $ 10 billion.
$ 10 billion in grants for disaster damage from economic injuries
The deal would add $ 10 billion in disaster recovery grants. As with the Pay Check Protection Loans, the initial funding for these grants was quickly running out.
The promise had been that small business owners could essentially get up to $ 10,000 within three days of applying directly from the SBA website.
The money for the Economic Injury Disaster Loan does not have to be repaid if it is used to maintain payroll, cover sick leave, and service other debts. However, if a small business owner receives both a grant and a forgivable paycheck protection program loan, the latter’s loan is reduced by the amount of the grant.
But almost every small business owner that CNN Business has spoken to in the past few weeks said he applied for a catastrophe loan early, but many haven’t received any money from it, and in some cases haven’t even received confirmation that their applications have been received.
Hospitals get more money
Hospitals and healthcare providers would receive an additional $ 75 billion to reimburse them for corona viruses, such as buying additional personal protective equipment and expanding the number of beds.
More money to test
States, localities, territories, and tribes would receive $ 11 billion to develop, buy, manage, and analyze tests, increase laboratory capacity, perform contract tracking, and support testing by employers.
Trump and the governors have been arguing over the adequacy and responsibility of testing in recent days. The president claims that the federal government cannot be responsible for testing in local communities. Governors, on the other hand, say they lack the supplies to run the tests.
The bill requires states, localities, territories, and tribes to submit plans for how to use the resources to test and simplify the corona virus community containment guidelines.
The package would also send $ 1 billion to disease control and prevention centers for surveillance, laboratory capacity expansion, contract tracking and other needs, and $ 1.8 billion to the National Institutes of Health for testing to develop, improve and implement. An additional $ 1 billion would go to the Biomedical Advanced Research and Development Authority for coronavirus testing and accessories.
In addition, legislation would provide up to $ 1 billion to cover testing costs for the uninsured, and $ 825 million for community health centers and rural health clinics that often need to treat uninsured people.
The Trump administration, refusing to reopen the Affordable Care Act to uninsured people, said instead that the federal government would cover the cost of hospitals for testing and treating the uninsured through a separate $ 100 billion fund . This fourth package added another $ 75 billion to this money pool.
What is missing: aid for state and local governments or for recipients of food stamps
The spokeswoman for the House of Representatives, Nancy Pelosi, and the chair of the Senate Minority, Chuck Schumer, did not get everything they wanted in the fourth aid package. Two things have been left out.
Democratic lawmakers wanted to allocate an additional $ 150 billion to state and local governments, which are also experiencing huge revenue and public health expenditures. Some have already started to take leave of absence and have warned of major budget cuts. The third aid package, adopted at the end of March, established a $ 150 billion fund for state and local governments to cover the cost of combating the coronavirus outbreak.