Mnuchin Says Small-Business Aid Deal Could Be Passed Within Days

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(Bloomberg) -- House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin were optimistic in interviews on Sunday about reaching a deal to replenish funds in the small-business loan program that ran out of money last week. Mnuchin said on CNN’s “State of the Union” that he’s hopeful the deal can be passed in the Senate on Monday and the House on Tuesday. Congress is “very close” to striking a bipartisan deal, Pelosi said on ABC’s “This Week,” adding that the Democratic caucus backs her approach to dig in and demand additional money for hospitals and other segments. “We’re close. We have common ground,” Pelosi said on ABC’s “This Week.” “I think we’re very close to an agreement.”Mnuchin said all sides were “making a lot of progress” on another $300 billion in small business funding. He said the deal will include hospitals -- if so, a key concession to Democrats -- but not for states and local governments.House Republicans have scheduled an 8 p.m. conference call for Sunday to get an update from the their leaders on the status of negotiations on replenishing the tapped-out Paycheck Protection Program, according to multiple party officials.Democratic members in the House hadn’t received any notice as of Saturday night on getting an update.One Republican lawmaker familiar with the situation said there’s been no official whipping or vote counting on a possible deal. The call Sunday is being billed as catching members up on the status of talks, the lawmaker said.Read more: Democrats Make Offer to Mnuchin in Effort to Break Aid DeadlockDemocratic insistence that the Congress do more than simply “top up” the PPP funds stalled action on the measure last week as funds dwindled, drawing criticism from Republicans and President Donald Trump.“Overwhelmingly, my caucus, and we’re working closely with the Senate Democrats, know that we have an opportunity, and an urgency, to do something for our hospitals, our teachers and firefighters and the rest, right now,” Pelosi said in a clip posted on ABC’s Twitter.“And then we’re preparing for our next bill,” she said. “Businesses will have the money in a timely fashion.”Congressional Democrats on Friday night outlined a new compromise offer to Mnuchin, a senior Democratic aide said on Saturday.Terms of the offer included allocating an already-requested $150 billion in state and local funding based on need, but also designating additional money for cities, counties and towns, the senior aide said.Key swing states including Pennsylvania, Michigan, Ohio and Wisconsin -- all won by Trump in 2016 -- would receive billions of dollars in new aid under the Democrats’ proposal.The Small Business Association’s $350 billion program, which was intended to help mom-and-pop businesses, has come under fire for payouts made to certain operations like large chain restaurants.In an interview on CNN Saturday, former Treasury Secretary Larry Summers said the types of businesses that can apply for funds “is too broad.”“Most of the money now is going to people who have hundreds of people working for them, and millions of dollars in their accounts,” Summers said. “We need to change the rules.”The industries that received the largest share of loans were construction; professional, scientific and technical services; manufacturing; and health care and social assistance, according to a report from the SBA.There’s a need to make sure the smallest businesses, like florists, pizza shops or barber shops, and stores in disadvantaged communities, gain access, Summers said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
 
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