The US is close to enacting a bill to expand Covid-19 testing, boost funding to hospitals and nearly double the size of a small business program that burned through hundreds of billions of dollars in 13 days.
The Democratic-controlled US House of Representatives is voting today on final passage of the $480bn relief bill, after which it will head to President Donald Trump for his signature. The Republican-led Senate approved the measure by voice vote on 21 April.
About $310bn of the bill will supplement an existing "payment protection program" that provides loans that convert to grants, so long as small businesses that receive them retain their workers.
The US created the program four weeks ago, as part of a $2.2 trillion rescue package but drew down an initial $349bn less than two weeks after lending began. Energy sector officials have supported the program, which has been a "lifeline" to small companies that service the energy sector, offshore trade group the National Ocean Industries Association president Erik Milito said.
Trump's administration is trying to discourage large companies from seeking funds under the program, after restaurant chains such as Potbelly received the maximum $10mn in funds. The US Treasury Department said today it is "unlikely" a public company with access to capital markets could certify in good faith that a loan under the program is "necessary."
Today's bill also includes $75bn for hospitals, $25bn for testing and $60bn for another small business loan program. Democratic lawmakers were unsuccessful in pushing for more funding for states hit by the loss of tax revenues during the pandemic.
Republican lawmakers from oil-producing states have been pushing to make it easier for the oil sector to be eligible for loans under last month's relief package. Six US senators led by North Dakota Republican John Hoeven sent a letter yesterday to US treasury secretary Steven Mnuchin seeking a lending facility specific to the oil and gas sector, as a way to preserve jobs and protect long-term national security.
