Good news for startups? Congress strikes deal to replenish small business relief fund with $310B
Congressional lawmakers agreed Tuesday to provide $484 billion to refill the coffers of a small business relief fund, expand testing for COVID-19, and send money to hospitals. The bill is expected to pass quickly.
The legislation earmarks $310 billion for the Paycheck Protection Program, a depleted fund that provides forgivable loans to small businesses that have been impacted by the pandemic.
Applications for the program opened two weeks ago but the $349 billion in initial funding quickly ran dry, leading to mixed results for tech startups and other small businesses. GeekWire has been reporting on the experiences of tech companies in the Seattle and Portland areas — ranging from tears of joy over securing the financial lifeline to feelings of helplessness after trying unsuccessfully to navigate the ambiguous application process.
Companies that were able to secure funds attributed their success to the type of bank that facilitated the loan.
The new legislation hinges on concessions to Democrats, including setting a national testing strategy, according to The New York Times. It includes $60 billion for the Small Business Administration’s disaster relief fund, $75 billion for hospitals, and $25 billion for coronavirus testing.
“This is another critical shot in the arm for small businesses,” Sen. Maria Cantwell (D-WA) said in a statement. “Included in the $370 billion of new money for SBA is $60 billion directly to community-based lenders to make sure small businesses can get help, whether they have a relationship with a big bank or not.
“Especially important to Washington, this bill allows small production agriculture, food, fiber and aquaculture businesses to access emergency grants and loans. I am also glad more funding will be going to much-needed testing and to hospitals and health care providers.”
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