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Trump says Congress ready to finalize $450 billion rescue plan

A $450 billion aid package adds funds to a U.S. small-business loan program that has聽run out of money聽and funds hospitals and COVID-19 testing.

By Hope Yen and Lisa Mascaro , Associated Press
Washington

The Trump administration and Congress expect an agreement Monday on an aid package of up to $450 billion to boost a small-business loan program that has聽run out of money聽and will add funds for hospitals and COVID-19 testing.

As talks continued, President Donald Trump said there鈥檚 a 鈥済ood chance鈥 of reaching a bipartisan agreement with Democrats.

鈥淲e are very close to a deal,鈥 Mr. Trump said Sunday at the White House.

Along with the small business boost, Mr. Trump said the negotiators were looking at 鈥渉elping our hospitals,鈥 particularly hard-hit rural health care providers.

The Senate is scheduled for a pro forma session Monday, but no vote has been set.

The House announced it could meet as soon as Wednesday for a vote on the pending package, according to a schedule update from Majority Leader Steny Hoyer, D-Md.

With small-business owners reeling during a聽coronavirus聽outbreak that has shuttered much economic activity, Treasury Secretary Steven Mnuchin said he was hopeful of a deal that could pass Congress quickly and get the Small Business Administration program back up by midweek.

鈥淚鈥檓 hopeful that we can get that done,鈥 Mr. Mnuchin said Sunday.

Senate Minority Leader Chuck Schumer, D-N.Y., also said he believed a deal could be reached. 鈥淲e still have a few more details to deal with,鈥 he said.

The emerging accord links the administration鈥檚 effort to replenish a small-business with Democrats鈥 demands for more money for hospitals and virus testing. It would provide $300 billion for small-business payroll program, and $50 billion would be available for small business disaster fund. Additionally, it would bring $75 billion for hospitals and $25 billion for testing, according to those involved in the talks.

On a conference call Sunday afternoon that included Mr. Trump, Mr. Mnuchin, and Republican senators, Senate Majority Leader Mitch McConnell, R-Ky., indicated the only remaining item for discussion involved the money for testing, according to a Senate GOP leadership aide who spoke on condition of anonymity to discuss a private call.

But Democrats have been insisting on boosting funding to cash-strapped states and local governments whose revenues have cratered. In weekend talks, they had proposed $150 billion for the effort.

鈥淲e are pushing hard,鈥 Mr. Schumer said.

But Mr. Mnuchin and Mr. McConnell reiterated on the call with senators that money for state and local governments as well as food stamps would not be included in the package, according to the GOP aide.

鈥淭he president is willing to consider that in the next bill, but wants to get this over the finish line with a focus on small businesses, hospitals and testing,鈥 Mr. Mnuchin said.

He said he鈥檚 been in touch with GOP leaders including House Minority Leader Kevin McCarthy, R-Calif., and all are 鈥渙n board with the same plan.鈥

House Speaker Nancy Pelosi, D-Calif., predicted an agreement would be reached 鈥渟oon.鈥

Under the emerging deal, the government鈥檚 Paycheck Protection Program for small businesses would get roughly $300 billion, according to Mr. Mnuchin. The Small Business Administration program has been swamped by companies applying for loans and reached its appropriations limit last Thursday after approving nearly 1.7 million loans. That left thousands of small businesses in limbo as they sought help. An additional $50 billion in the evolving deal would go for disaster loans.

Criticism has been leveled at some large businesses - auto dealers and restaurant chains - for drawing down funds from the PPE. On Sunday,聽Shake Shack released a statement saying it will return all $10 million it received from the program.

鈥淥ur people would benefit from a $10 million [Paycheck Protection Program] loan but we鈥檙e fortunate to now have access to capital that others do not,鈥 the company鈥檚 executives, Danny Meyer and Randy Garutti, wrote in a letter shared on LinkedIn. 鈥淯ntil every restaurant that needs it has had the same opportunity to receive assistance, we鈥檙e returning ours.鈥

In the new aid package, about $75 billion would go to U.S. hospitals, for those straining under a ballooning coronavirus caseload as well as those struggling to stay financially afloat after suspending elective surgeries during the pandemic. About $25 billion would be added for COVID-19 testing, something states have said was urgently needed.

Republican Maryland Gov. Larry Hogan, who leads the National Governors鈥 Association, said he and other governors believe that aid for state and local government is 鈥渄esperately needed,鈥 but that it may not be an issue worth fighting over for now.

Democratic New York Gov. Andrew Cuomo said states needed money from the federal government to ramp up testing, and he blasted legislation that wouldn鈥檛 provide it.

鈥淵ou have the president saying 15 times, 鈥業t鈥檚 up to the governors, it鈥檚 up to the governors, it鈥檚 up to the governors,鈥樷 he said. 鈥淎nd then they鈥檙e going to pass a piece of legislation that gives you know what to states: zero, zilch, nada, niente. Whatever language you want to say it, nothing.鈥

The SBA loans, based on a company鈥檚 payroll costs, offer owners forgiveness if they retain workers or rehire those who have been laid off. The law provides for forgiveness for companies in any industry 鈥 even businesses like hedge funds and law firms. There鈥檚 a limit of $100,000 on the amount of employees鈥 compensation that can be considered when loan forgiveness is calculated.

Mr. Mnuchin, Mr. Schumer, and Mr. Hogan appeared on CNN鈥檚 鈥淪tate of the Union,鈥 and Clark spoke on CBS鈥 鈥淔ace the Nation.鈥

This story was reported by The Associated Press.

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