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| Stalemate Over Small-Business Aid Deepens as Officials Warn of Funding Lapse | Stalemate Over Small-Business Aid Deepens as Officials Warn of Funding Lapse |
| (3 days later) | |
| WASHINGTON — A stalemate over an emergency infusion of cash to help small businesses battered by the coronavirus pandemic intensified on Monday after Democratic leaders doubled down on demands for additional money for state and local governments, hospitals, food assistance and rapid testing. | WASHINGTON — A stalemate over an emergency infusion of cash to help small businesses battered by the coronavirus pandemic intensified on Monday after Democratic leaders doubled down on demands for additional money for state and local governments, hospitals, food assistance and rapid testing. |
| With Speaker Nancy Pelosi of California and Senator Chuck Schumer of New York, the minority leader, insisting on adding to the Trump administration’s request to inject $250 billion into the loan program, it is unclear whether lawmakers can reach a consensus this week even as officials warn that the program could run out of funds as early as Friday. | With Speaker Nancy Pelosi of California and Senator Chuck Schumer of New York, the minority leader, insisting on adding to the Trump administration’s request to inject $250 billion into the loan program, it is unclear whether lawmakers can reach a consensus this week even as officials warn that the program could run out of funds as early as Friday. |
| The impasse over what was intended to be an interim emergency package before another broader stimulus deal comes as businesses say they have yet to receive a majority of the billions slated for the program. The National Governors Association also called on Saturday for Congress to allocate an additional $500 billion to states to help offset state revenue shortfalls, more than double what Democrats initially demanded. | The impasse over what was intended to be an interim emergency package before another broader stimulus deal comes as businesses say they have yet to receive a majority of the billions slated for the program. The National Governors Association also called on Saturday for Congress to allocate an additional $500 billion to states to help offset state revenue shortfalls, more than double what Democrats initially demanded. |
| “We have real problems facing this country, and it’s time for the Republicans to quit the political posturing by proposing bills they know will not pass either chamber and get serious and work with us toward a solution,” Ms. Pelosi and Mr. Schumer said in a joint statement. | “We have real problems facing this country, and it’s time for the Republicans to quit the political posturing by proposing bills they know will not pass either chamber and get serious and work with us toward a solution,” Ms. Pelosi and Mr. Schumer said in a joint statement. |
| Negotiations are further complicated because the pandemic has kept lawmakers away from Washington, requiring additional procedural hurdles to approve legislation and giving any one lawmaker the ability to block it. House leaders announced on Monday that a scheduled return to Capitol Hill would be further delayed until May 4. The Senate is still set to convene in a week. | Negotiations are further complicated because the pandemic has kept lawmakers away from Washington, requiring additional procedural hurdles to approve legislation and giving any one lawmaker the ability to block it. House leaders announced on Monday that a scheduled return to Capitol Hill would be further delayed until May 4. The Senate is still set to convene in a week. |
| With a majority of lawmakers reluctant to return to Washington, Senate Republicans tried to approve the additional funds for the loan program, known as the Paycheck Protection Program, on Thursday during a procedural session. But Democrats blocked the maneuver, arguing that the legislation needed to include additional funds as well as conditions to ensure that the loan money was distributed fairly to small businesses. | With a majority of lawmakers reluctant to return to Washington, Senate Republicans tried to approve the additional funds for the loan program, known as the Paycheck Protection Program, on Thursday during a procedural session. But Democrats blocked the maneuver, arguing that the legislation needed to include additional funds as well as conditions to ensure that the loan money was distributed fairly to small businesses. |
| Republicans, led by President Trump, have said they would prefer to negotiate any additional funds and changes in future legislation. During a brief procedural session in the Senate on Monday, lawmakers did not try to push through the administration’s request, which would have required unanimous approval from all 100 senators without the full chamber present. | Republicans, led by President Trump, have said they would prefer to negotiate any additional funds and changes in future legislation. During a brief procedural session in the Senate on Monday, lawmakers did not try to push through the administration’s request, which would have required unanimous approval from all 100 senators without the full chamber present. |
| Senator Mitch McConnell of Kentucky, the majority leader, and Representative Kevin McCarthy of California, the minority leader, said over the weekend that they would continue to push for stand-alone funding for small businesses. “Republicans reject Democrats’ reckless threat to continue blocking job-saving funding unless we renegotiate unrelated programs which are not in similar peril,” they said. | Senator Mitch McConnell of Kentucky, the majority leader, and Representative Kevin McCarthy of California, the minority leader, said over the weekend that they would continue to push for stand-alone funding for small businesses. “Republicans reject Democrats’ reckless threat to continue blocking job-saving funding unless we renegotiate unrelated programs which are not in similar peril,” they said. |
| Lawmakers in both parties acknowledge that the program, which was created as part of the $2 trillion economic stimulus package signed into law last month, will require some fixes and additional funds. A federal judge found on Monday that while “a significant flaw” prevented some small businesses from securing loans because of bank restrictions, “Congress is better positioned to remedy any defects” in the legislation than a court. | Lawmakers in both parties acknowledge that the program, which was created as part of the $2 trillion economic stimulus package signed into law last month, will require some fixes and additional funds. A federal judge found on Monday that while “a significant flaw” prevented some small businesses from securing loans because of bank restrictions, “Congress is better positioned to remedy any defects” in the legislation than a court. |
| But administration officials have warned that the loan program could run out of its original $349 billion allotment as early as Friday, and that additional money is needed before any changes are made to the program. As of Monday, more than 4,600 lenders had been approved for more than $230 billion, according to Treasury Secretary Steven Mnuchin, and there was concern that banks would stop issuing loans without a guarantee of more cash from the federal government. | But administration officials have warned that the loan program could run out of its original $349 billion allotment as early as Friday, and that additional money is needed before any changes are made to the program. As of Monday, more than 4,600 lenders had been approved for more than $230 billion, according to Treasury Secretary Steven Mnuchin, and there was concern that banks would stop issuing loans without a guarantee of more cash from the federal government. |
| Updated August 17, 2020 | |
| Mr. Mnuchin remained adamant during a coronavirus task force briefing on Monday that the administration did not support adding other funds or any conditions to the request. “The president and vice president have said: Once we get the S.B.A. done, we can go into another funding bill,” he said, referring to the Small Business Administration, which is overseeing the program. | Mr. Mnuchin remained adamant during a coronavirus task force briefing on Monday that the administration did not support adding other funds or any conditions to the request. “The president and vice president have said: Once we get the S.B.A. done, we can go into another funding bill,” he said, referring to the Small Business Administration, which is overseeing the program. |
| It is unclear, however, how much of that money has actually been delivered to small businesses. And while funds are slowly beginning to reach hospitals and governments — Mr. Mnuchin said on Monday that state, tribal and local governments could apply for the first half of coronavirus relief fund payments a week ahead of schedule — Democrats argue that it is clear that more aid will be needed and should be included with the small-business funds. | It is unclear, however, how much of that money has actually been delivered to small businesses. And while funds are slowly beginning to reach hospitals and governments — Mr. Mnuchin said on Monday that state, tribal and local governments could apply for the first half of coronavirus relief fund payments a week ahead of schedule — Democrats argue that it is clear that more aid will be needed and should be included with the small-business funds. |
| “We’ve said to them: Let’s negotiate,” Ms. Pelosi told Democratic lawmakers on a caucus call, according to a person on the call who spoke on the condition of anonymity to disclose details of the private conversation. “We all care about small businesses and want them to succeed.” | “We’ve said to them: Let’s negotiate,” Ms. Pelosi told Democratic lawmakers on a caucus call, according to a person on the call who spoke on the condition of anonymity to disclose details of the private conversation. “We all care about small businesses and want them to succeed.” |
| “Hopefully, we can come to some terms if they will negotiate,” she added. | “Hopefully, we can come to some terms if they will negotiate,” she added. |
| On the call, Representative Nydia M. Velázquez of New York, the chairwoman of the House Small Business Committee, also voiced concern about the administration’s ability to report how many loans had been processed or details about who was borrowing the funds. | On the call, Representative Nydia M. Velázquez of New York, the chairwoman of the House Small Business Committee, also voiced concern about the administration’s ability to report how many loans had been processed or details about who was borrowing the funds. |
| The governors association’s chairman, Gov. Larry Hogan of Maryland, a Republican, said in a statement on Monday that he spoke with Vice President Mike Pence and the administration about the response to the coronavirus. | The governors association’s chairman, Gov. Larry Hogan of Maryland, a Republican, said in a statement on Monday that he spoke with Vice President Mike Pence and the administration about the response to the coronavirus. |
| “I have spoken to the leaders of Congress in both parties about the need for this relief,” Mr. Hogan said. “We have asked the administration to weigh in so that we can break this logjam in the Senate and get this done for the American people.” | “I have spoken to the leaders of Congress in both parties about the need for this relief,” Mr. Hogan said. “We have asked the administration to weigh in so that we can break this logjam in the Senate and get this done for the American people.” |
| Alan Rappeport and Emily Flitter contributed reporting. | Alan Rappeport and Emily Flitter contributed reporting. |