US Congress scrambles to help smaller virus-hit firms

Significance

The package would close loopholes and make improvements to the CARES Act so that money will get to small businesses. However, the parties disagree over whether funding for medical care and other expenses should be included in either the fourth package or the PPP top-up bill.

Impacts

• There will be pressure to make unemployment benefits extend beyond July 31.
• Distribution of PPP grants will be hampered by banks’ capacity limits and overwhelming application numbers.
• Federal Reserve market intervention akin to 2008 will offset the worst market instability and help capital-market-reliant firms.
• Democrats will push for greater educational, nutrition assistance and frontline medical funding in package four.
• Republicans will support healthcare funding and closing loopholes in package four, but not other Democrat proposals.