President Donald Trump said on Sunday “We are getting close to a deal,”. He Mentioned that the White House and Congress are nearing an agreement on an aid package of up to $450 billion (£360 billion) to boost a cash-strapped small-business loan programme and add funds for hospitals and COVID-19 testing.
With small-business owners reeling from the coronavirus outbreak, Treasury Secretary Steven Mnuchin said earlier he was hopeful of a deal that could get the Small Business Administration program back up by midweek. Under the emerging agreement, there would be $300 billion (£240 billion) for the small-business payroll programme, and $50 billion (£40 billion) would be available for a small business disaster fund.
Additionally, it would bring $75 billion (£60 billion) for hospitals and $25 billion (£20 billion) for testing, according to those involved in the talks. The SBA loans, based on a company’s payroll costs, offer owners forgiveness if they retain workers or rehire those who have laid off.
The law provides forgiveness for companies in any industry even businesses like hedge funds and law firms. There’s a limit of $100,000 on the amount of employees’ compensation that can consider when loan forgiveness calculated. But additional aid to state and local governments would be left out, Mr Mnuchin said.
Democrats have been keen to boost funding to cash-strapped states and local governments whose revenues have cratered. Still, the issue threatened to provoke fights between large, high-tax states like California and New York and smaller states more typically run by Republicans.“The 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,” Mr Mnuchin said. To know more Politics news click here.