The initial $349 billion pool for emergency loans for small businesses derailed by the coronavirus pandemic has run dry as Democrats and Republicans try to agree on how to replenish the relief program.
The fund offered forgivable loans to small businesses intended to keep workers on payroll and businesses from going under.
In addition to the $349 billion, $10 billion for Economic Injury Disaster Loans had dried up. That program offered fast cash to businesses, providing a $10,000 advance within just a few days of applying for up to $2 million in loans.
If congress is able to reach a deal by early afternoon they could attempt to pass it by end of session Thursday. Congress is expected to be in session briefly Friday, otherwise, all attempts would wait until early next week.
With neither the House nor Senate expected to bring all members back to Washington before May 4, leadership will need the support of every lawmaker to pass additional money for the PPP.
“‘Small businesses are the backbone of the American economy, employing 47% of all workers. In high-cost cities, the median small business has only enough cash to cover 2-3 weeks of expenses,’ wrote Ron Temple, head of U.S. equity at Lazard Asset Management.”