Democrats tack on demands to $250 billion boost for small businesses

Washington — As lawmakers on Capitol Hill turn their focus to approving additional funding for small businesses weathering the coronavirus crisis, Democratic leaders said Wednesday they back more aid for struggling businesses but made further requests for an interim legislative package, including money for hospitals and state and local governments.

Treasury Secretary Steven Mnuchin on Tuesday requested Congress approve an additional $250 billion for the Paycheck Protection Program, a key pillar of the $2.2 trillion economic stimulus package signed into law last month. The loan program, administered by the Small Business Administration, is designed to ensure small businesses keep employees on the payroll and can pay their own bills during the coronavirus pandemic.

But House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer on Wednesday laid out congressional Democrats' priorities for a stopgap measure beyond the $250 billion for small businesses, which would bring the total to $500 billion.

The Democrats want an interim measure to include $100 billion for hospitals and health systems for rapid testing and personal protective equipment, $150 billion for state and local governments, and a 15% increase in the maximum food stamp benefit for families.

Of the $250 billion for small businesses, Democrats are calling for $125 billion to be specifically for farmers, women, minority, family and veteran-owned businesses and nonprofits, and are calling for improvements to ensure small businesses seeking loans are not rejected by banks.

"The heartbreaking acceleration of the coronavirus crisis demands bold, urgent and ongoing action from Congress to protect Americans' lives and livelihoods," Pelosi and Schumer said in a statement. "As Democrats have said since day one, Congress must provide additional relief for small businesses and families, building on the strong down-payment made in the bipartisan CARES Act."