d3sign | The moment | Getty Images
The Senate’s infrastructure measure, unveiled this week, will raise $ 31 billion from the Covid business loan program.
The Disaster Loan Program was one of the mechanisms Congress used to help ailing businesses stay afloat during the pandemic.
IN Infrastructure and Jobs Investment Law – The $ 1 trillion bipartisan bill, unveiled on Sunday, will permanently remove $ 13.5 billion from the disaster loan program.
Unlike the payroll protection program, which is mainly aimed at supporting employees’ salaries, the EIDL low-interest loans are designed to cover operating expenses such as medical benefits, rent, utilities, and fixed debt payments.
The Small Business Administration has disbursed $ 236 billion in disaster loans to 3.8 million businesses, according to the federal government. data until July 29.
Senate infrastructure legislation will also set back $ 17.6 billion from the partner program to award grants of up to $ 15,000 to hard-hit businesses in low-income communities.
Program, Target EIDL Advance, according to the SBA, paid out $ 2.6 billion to 314,000 business owners.
An earlier version, created by the CARES Law, was available to a wider range of entrepreneurs, but Exhausted $ 20 Billion Funding by July 2020
Cancellation of funds will not affect balances already owed to the SBA, which administers the programs, if the infrastructure measure is successful.
The infrastructure bill allocates money for national roads, bridges, public transport, broadband, rail, water, and airports. Senate Majority Leader Chuck Schumer, NY hopes to get through this before the planned monthly break starting August 9th.
The bill also aims to increase revenues through Ending tax incentives for businesses in a pandemic era – loan for employee retention – three months earlier.