Democrats raise red flags over Republican Party small business plan as Biden steps in

Red flags raised by Democrats, as well as business groups dissatisfied with Republican restrictions on aid to small businesses, make the legislation likely to see significant changes before reaching a final agreement.

However, when it comes to some of the big strokes on the small business plan, Republicans and Democrats seem to be close to the deal.

Senate Small Business President Marco Rubio (R-Fla.), Who drafted the Republican proposal, and Senator Ben Cardin (D-Md.), The panel’s top Democrat, are aligned in the belief that Congress It should allow businesses to apply for a second round of forgivable Check Protection Program loans in the coming months. Both want to target more help to the most affected small employers, including minority businesses.

Cardin and other Democratic committees first proposed that companies apply for a second loan last month. Rubio’s new invoice includes a similar plan. Both would require companies to show a 50 percent loss of income to qualify, but some details are different. Rubio’s bill would limit eligibility to companies with 300 employees or less, while Cardin’s bill would focus on companies with no more than 100 employees.

“There are many similarities,” Cardin said in an interview with Yahoo Finance on Tuesday. “We all want to do more for the companies that really need it.”

One of the biggest omissions in the eyes of Democrats is the lack of new funds for the Small Business Administration’s disaster loan program for financial damages.

Unlike the Paycheck Protection Program, which makes loans through banks, the disaster aid program is administered directly by the SBA. Rosen and Senator John Cornyn (R-Texas) have proposed another $ 180 billion for disaster program loans and grants, as well as restrictions on the SBA’s ability to limit the amount of aid businesses can receive, after that the agency angered both business owners and lawmakers by imposing their own hats. House Democrats included $ 10 billion in additional funds for EIDL grants in the $ 3 billion economic aid bill they passed in May.

“We need to continue funding the EIDL and EIDL Advance programs in this fourth Covid aid package, so that our small businesses have the help they need to stay afloat and weather this protracted economic storm,” said Rosen. “Real bipartisan solutions are possible, and Senator Cornyn and I provided one. As negotiations continue, I will continue to push for this bipartisan bill to be included in the Senate Covid aid package.”

While Rubio has proposed to focus on the next wave of small business support for minority-owned businesses and set aside funds for community-focused lenders, Democrats will likely push for more, a priority Biden’s presidential campaign highlighted Tuesday. in a new economic plan focused on racial discrimination. capital.

Biden’s campaign said the broad proposal “would leverage more than $ 150 billion in new capital and opportunities for small businesses that have been structurally excluded for generations.” The former vice president called for funds for loan programs in black and brown communities, support for community development financial institutions and minority depository institutions, as well as plans to attract “public-private venture capital” to entrepreneurs of color.

Biden’s campaign said it would reserve half of future relief for small businesses, whether under the Paycheck Protection Program or other efforts, for companies with 50 or fewer employees.