Small businesses get $500B coronavirus relief boost as House passes stimulus package

Stimulus package comes as another 4.4M Americans filed for unemployment last week

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Congress delivered a nearly $500 billion infusion of coronavirus spending Thursday, rushing new relief to employers and hospitals buckling under the strain of a pandemic that has claimed almost 50,000 American lives and one in six U.S. jobs.

The measure passed almost unanimously, but the lopsided tally belies a potentially bumpier path ahead as battle lines are being formed for much more ambitious future legislation that may prove far more difficult to maneuver through Congress.

Rep. Jim McGovern, D-Mass., gestures to Rep. Carolyn Maloney, D-N.Y., as they speak on the floor of the House of Representatives at the U.S. Capitol in Washington, Thursday, April 23, 2020. (House Television via AP)

The bipartisan measure neared passage as lawmakers gathered in Washington as a group for the first time since March 27, adopting stricter social distancing rules while seeking to prove they can do their work despite the COVID-19 crisis.

Lawmakers’ face masks and bandanas added a somber tone to their effort to aid a nation staggered by the health crisis and devastating economic costs of the pandemic.

“Millions of people out of work,” said House Speaker Nancy Pelosi, D-Calif. “This is really a very, very, very sad day. We come to the floor with nearly 50,000 deaths, a huge number of people impacted, and the uncertainty of it all. We hope to soon get to a recovery phase. But right now we’re still in mitigation.”

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Anchoring the bill is the Trump administration’s $250 billion funding request to replenish the Paycheck Protection Program, a fund to help small- and medium-sized businesses with payroll, rent and other expenses during the pandemic, which ran out last week after approving nearly 1.7 million loans.

Treasury Secretary Steven Mnuchin said Tuesday the Small Business Administration has processed more loans for small business coronavirus relief than it has in total for the past decade, with over 1 million companies with less than 10 workers receiving PPP funding.

But controversy has surrounded the program as roughly 150 public companies, including Shake Shack and Ruth's Hospitality Group, received SBA loans meant for small businesses. Both Shake Shack and Ruth's Hospitality Group have said they would pay back the loans immediately.

TickerSecurityLastChangeChange %
RUTHRUTH'S HOSPITALITY GROUP8.11-0.65-7.42%
SHAKSHAKE SHACK INC55.55+0.02+0.04%

It also contains $100 billion demanded by Democrats for hospitals and a nationwide testing program, along with a $60 billion set-aside for small banks and an alternative network of community development banks that focus on development in urban neighborhoods and rural areas ignored by many lenders. There’s also $60 billion for small business loans and grants delivered through the SBA’s existing disaster aid program.

President Donald Trump speaks about the coronavirus in the James Brady Press Briefing Room of the White House, Thursday, April 23, 2020, in Washington. (AP Photo/Alex Brandon)

President Donald Trump celebrated the bill’s passage at his daily White House briefing Thursday.

“At a time when many Americans are enduring significant economic challenges, this bill will help small businesses to keep millions of workers on the payroll,” he said.

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The 388-5 vote — with Rep. Justin Amash, I-Mich., voting “present” — came at the end of a nettlesome path to passage. Republicans sought immediate action on Trump’s “clean” request for the small business money — backed by powerful, GOP-leaning business groups — but Democrats demanded equal funding for their priorities, frustrating Republicans who accused them of seeking leverage during the crisis. Republicans said delays in replenishing the paycheck subsidy program probably pushed some struggling businesses over the edge into closure.

House Speaker Nancy Pelosi of Calif., speaks on the floor of the House of Representatives at the U.S. Capitol in Washington, Thursday, April 23, 2020. (House Television via AP)

Signs of the pandemic were everywhere in the House chamber Thursday. As Pelosi spoke from the floor, she lowered a white scarf that had covered much of her face. House Chaplain Patrick Conroy delivered the opening prayer wearing a yellow protective mask, and most lawmakers and aides on the chamber’s sparsely populated floor wore masks as well.

With the entire Capitol closed to the public, visitors’ galleries were set aside for lawmakers in an effort to separate them.

Workers walk through the halls of the U.S. Capitol Building on Capitol Hill, Thursday, April 23, 2020, in Washington. (AP Photo/Andrew Harnik)

Passage of more coronavirus relief is likely in the weeks ahead. Supporters are already warning that the business-backed Payroll Protection Program will exhaust the new $250 billion almost immediately.

Pelosi and allies like Ways and Means Committee Chairman Richard Neal, D-Mass., said the next measure will distribute more relief to individuals, extend more generous jobless benefits into the fall, provide another round of direct payments to most people and help those who are laid off afford health insurance through COBRA.

Democrats tried to win another round of funding for state and local governments in Thursday’s bill but were rebuffed by Senate Majority Leader Mitch McConnell, R-Ky., who says he’s going to try to pump the brakes on runaway deficit spending. McConnell says he doesn't want to bail out Democratic-governed states for fiscal problems that predated the pandemic, but there's plenty of demand for state fiscal relief among Republicans, too.

Senate Majority Leader Mitch McConnell of Ky., speaks with reporters after the Senate approved a nearly $500 billion coronavirus aid bill, Tuesday, April 21, 2020, on Capitol Hill in Washington. (AP Photo/Patrick Semansky)

After the Senate passed the latest bill Tuesday, McConnell declared Republicans would entertain no more coronavirus rescue legislation until the Senate returns to Washington, promising rank-and-file Republicans greater say in the future legislation, rather than leaving it in the hands of top bipartisan leaders.

Pelosi attacked McConnell for at first opposing adding any money to his original $250 billion package and saying cash-strapped states should be allowed to declare bankruptcy, a move that they currently cannot do and that would threaten a broad range of state services. McConnell’s comments provoked an outcry — including from GOP governors — and he later tempered his remarks.

“Oh, really?” Pelosi said. “What made you think that was a good idea?”

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A masked worker at this state WIN job center in Pearl, Miss., holds an unemployment benefit application form as she waits for a client, Tuesday, April 21, 2020. (AP Photo/Rogelio V. Solis)

Thursday morning, the Labor Department reported that 4.4 million people filed for unemployment benefits last week as layoffs sweep the economy. Over the last five weeks, roughly 26 million people have filed for jobless aid, or about one in six U.S. workers.

All told, the four coronavirus relief bills crafted by Congress would deliver at least $2.4 trillion for business relief, testing and treatment, and direct payments to individuals and the unemployed, according to the Congressional Budget Office. The deficit is virtually certain to breach $3 trillion this year and is likely to go well above that when CBO issues new data as early as Friday.

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FOX Business' Lucas Manfredi contributed to this report