From $1400 checks to monthly payments for families, Congress is making progress toward another stimulus package. This week, the House Small Business Committee approved $50 billion in aid for small businesses throughout the country, moving the bill onto the next stage of the legislative process. The bill includes $15 billion in new funding for Targeted EIDL Grants, as well as other programs.
Here’s what you need to know about the package and the timing, plus we give our recommendations at the bottom of this post.
More EIDL Funding
The House committee approved an additional $15 billion for the Targeted EIDL Advance program, and directed the SBA to expand the program to more businesses after distributing to all those currently eligible. Once the SBA has distributed to the currently eligible businesses, the next group of businesses who will be eligible are those located in a low-income census tract who have experienced a revenue loss of 50% or greater (whether they applied for the first round of EIDL funding or not) and finally those with a loss of 30% or greater.
The bill also includes $460 million for economic injury disaster loans, separate from the advance program.
Funding For Restaurants
The biggest chunk of funding in the House committee’s bill is $25 billion in aid specifically for restaurants. Grants will be available of up to $10 million for restaurants that experienced a revenue drop in 2020. The first round of funding will prioritize women-owned, veteran-owned and low-income owned businesses before opening up to all. Grants will be allowed to be used for payroll, expenses, supplies and other needs.
More PPP Funding
The bill also expands the current funding for the PPP program by $7.25 billion. That will expand the total funding for the program to $813 billion since its inception last March. The committee bill also expands PPP eligibility to include more nonprofits and some online publishing groups.
New Pilot Program
The bill also includes $175 million in funding for a new program called the Community Navigator program, which is a grant program to help under-resourced business owners access COVID-19 aid. The program will include both cash grants and education.
What Happens Next?
Passing in committee is just the first step of the bill becoming law. Next, it needs to pass on the general House Floor and then will need to be debated and voted on by the Senate. Democrats are trying to pass stimulus funding faster through a process called budget reconciliation, which streamlines the approval process for budget-related bills, but it still could take a few weeks before it passes both houses of Congress.
In the meantime, some ways to stay up-to-date: