Congress, SBA direct aid to COVID-impacted workers and businesses

House lawmakers easily approved an economic relief bill on March 14 to tackle the growing economic impact of the coronavirus primarily by expanding the nation’s safety net. The measure, approved on a bipartisan basis after President Trump endorsed it, includes tens of billions of dollars to extend family medical leave and paid sick leave, and also shores up unemployment insurance, health insurance for the poor, and food programs for children and the elderly.

The new paid sick leave guarantee requires companies to provide 14 days of paid sick leave at “not less” than two-thirds of the regular rate for workers who have to be quarantined or treated for coronavirus, or who need to take care of a family member with covid-19 or stay home with children whose school has closed, reports the Washington Post. The agreement also provides up to three months of paid family and medical leave.

The Senate is expected to pass the relief measure shortly.

Separately, the Small Business Administration (SBA) released details March 12 on its plan to offer low-interest, working capital loans of up to $2 million to small businesses and nonprofits suffering substantial economic harm as a result of the coronavirus outbreak. Lawmakers included the authority for the agency to provide economic injury disaster loan assistance as part of the $8.3 billion emergency spending bill Trump signed March 6 to combat the coronavirus.

SBA’s Office of Disaster Assistance will coordinate with states and territories to submit formal requests for the loan assistance. Once a declaration is made for designated areas within a state, the agency will release information on the application process to affected communities, according to a press release.

The loans can be used by companies that cannot secure credit elsewhere to pay fixed debts, payroll, accounts payable and other bills they can’t cover due to the coronavirus epidemic. The interest rate is 3.75 percent for small businesses and 2.75 percent for nonprofits. SBA offers repayment schedules lasting up to 30 years.

The initial emergency spending bill provides $1 billion in subsidies for an estimated $7 billion in loans. And more assistance for small businesses could be on the way. In a televised address March 11, the president called on Congress to devote an additional $50 billion to the SBA loan program, reported the Washington Post.