Senate Reaches Deal to Replenish Small Business Loan Fund; House Expected to Follow Shortly
The Senate voted on Tuesday to approve additional funding for the Small Business Administration (SBA) loan programs included in the CARES Act. The package includes a $320 billion increase to the Paycheck Protection Program and a $60 billion increase to the Economic Injury Disaster Loan program, both of which ran out of funding last week. The House is expected to approve the package this week. Passage comes after a week of negotiations between Senate Majority Leader Mitch McConnell, House Speaker Nancy Pelosi, Treasury Secretary Steve Mnuchin and Minority Leader Chuck Schumer. The Senate passed the bill by voice vote on Tuesday and the House is expected to pass the legislation without objection this week, probably on Thursday. Since the House is not in session, the legislation must pass by unanimous consent.
The House is considering remote voting procedures, such as teleconferencing or proxy options. If the House adopts remote voting procedures, unanimous consent may not be required in the future, allowing future legislation to pass under a suspension of the rules with two-thirds majority vote. There is no indication as to whether or how quickly the remote voting will be adopted.
If you expect to need an SBA loan, but have not yet applied or one, we urge you to speak with your lender as soon as possible. The additional funds may be exhausted quickly. NRMCA has joined a broad effort to support additional funding for the SBA loan programs, joining NSSGA and PCA, as well as dozens of other trade associations, in sending a letter to Congress.
For more information, contact Andrew Tyrrell at email@example.com.