Senate GOP considers forgivable business loans to end layoffs and bankruptcies

Sen. Marco Rubio (R-Florida) said Tuesday that Senate Republicans are drawing up a plan to provide forgivable loans to businesses sidetracked by the coronavirus outbreak through a $1 trillion economic rescue package.

In a thursday tweet seriesRubio detailed how GOP senators plan to support companies that may be forced to lay off workers as measures to slow the coronavirus pandemic shut down entire industries across the United States.

Rubio said the loans would be issued through banks, credit unions and other private sector financial firms to help speed up the process of distributing the funds. If a business uses the loan to keep employees on payroll, pay rent or manage other necessary expenses, Rubio added, it wouldn’t have to repay the loan.

The overall goal was to “get money into small businesses [as] quick and easy as possible so they don’t have to fire people,” Rubio tweeted, who is the spearhead Senate GOP deliberations on business aid. “If they use it for that purpose, they don’t have to be reimbursed.”

President Trump and lawmakers are scrambling to get ahead of a likely flood of layoffs and business bankruptcies brought about by the coronavirus pandemic and the drastic measures needed to slow its progress.

Unemployment insurance claims rose by 70,000 in the week of March 8-13, with numbers almost certain to soar as a growing number of restaurants, bars, entertainment venues, hotels and other companies are forced to shut down or limit service for weeks, if not months.

“There are a lot of companies that are hurting right now, and they’re going to start laying off unless we give them money,” Sen. Mitt Romney (R-Utah) said on “The Hugh Hewitt Show” Thursday. “We’d rather employers pay these people than have them report to the unemployment office.”

The Trump administration and lawmakers are also looking at ways to help workers who have already been laid off or may be forced to miss work if they or a loved one contracts the coronavirus.

Trump Wednesday signed an invoice brokered by House Speaker Nancy Pelosi (D-Calif.) and Treasury Secretary Steven Mnuchin to bolster unemployment insurance, paid sick leave and provide free coronavirus testing.

Mnuchin also told Fox Business Network that the administration is proposing to send each U.S. household $1,000 for each adult and $500 for each child within three weeks of the stimulus bill passing with another round. to come six weeks later if the economy is unable to rebound.

Legislators from both parties support emergency direct payments to American households, which were deployed by former President George W. Bush during the recessions of 2001 and 2008.

The proposals differ significantly from universal basic income plans backed by a slew of progressives, including former Democratic presidential candidate Andrew Yang, which would provide every adult American with a stable monthly income, regardless of the state of the economy. economy.

Jordan Carney contributed to it.

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