Some of you have questions about the details of the negotiations.
Can small businesses take advantage of the expected aid, such as small business loans?
Will state and local governments receive help?
Senate Republicans and Democrats have completed the negotiations. The deal is done on COVID-3, The CARES Act
Here’s what we know: The Basics
- Members are pens down.
- Staff is now drafting the details.
- $1.4 trillion in new spending, including $58billion for airlines.
- $700 – 800 million in forgivable loan guarantees/grants.
- Total package estimated to provide $2.2 trillion in aid.
- Bill provides substantial flexibility for Treasury to get the funding out the door in some combination of grants and loans. Funds will be for disaffected entities/sectors in general, including the travel/critical infrastructure sectors. There will also be three additional subcategories:
- Air carriers
- Air cargo
- Major aviation suppliers
- Relief for hospitals.
- Relief for non-profits (small business section allows 501(c)3s to qualify for forgivable loans).
Senate leaders previewed the deal in their remarks on the Senate floor.
Senate Majority Leader McConnell (R-KY) made comments on the Senate Floor about the progress of the negotiations. He said progress is being made on “stimulus talks’ and said the plan is to hold the first procedural vote tomorrow with final passage Monday. Leader McConnell also urged House Democrats to pass the Senate bill quickly and not “burn” days trying to draft their version of the bill.
Senate Minority Leader Schumer (D-NY) also addressed the negotiations. He, too, stated that progress is being made but reiterated the bill is not doing enough to help workers, food assistance, and unemployment benefits.
Speaker Pelosi (D-CA) has said the Senate bill is a non-starter in the House unless changes are made.
What do the polar opposite statements of the respective leaders mean?
First, it means final Senate passage by Monday is an ambitious goal.
The bill needs significant changes to get Democratic support to meet the Monday goal.
Also, keep in mind that the usual Senate procedural rules and hurdles for floor debate can be avoided with unanimous consent from both parties – the key is that both parties have to agree to pass the bill by Monday.
The Senate will vote to proceed to the bill (known as a cloture vote) tomorrow at 3:00 pm EST.
We’ll see how House Democrats will respond, and when they will reconvene. The expectation is that once the Senate votes, they will recess for a few weeks while working on the next phase of aid (COVID #4 package) remotely.
Developments will continue to unfold as the first Senate vote occurs.
Have questions? Do not hesitate to message me directly.
I can explain how particular provisions apply to your company and business.
If you have questions about the direct stimulus payments to individuals, let’s talk about your questions as well. The timing for these payments will be key.
As always, stay tuned for more updates.