Heather Curtis
MARYLAND (WMAL) – More relief could be on the way for businesses and their furloughed or laid off employees. Senators Mark Warner (R-VA), Bernie Sanders (I-VT), Dough Jones (D-AL) and Richard Blumenthal (D-CT) are proposing the Paycheck Security Act, which would give grants to businesses that have lost at least 20% of revenues during the COVID-19 pandemic to cover their payrolls for at least six months. It would give 100% payroll support for salaries and wages up to $90,000 of pay for each furloughed or laid off employee.
Businesses big and small have been struggling during the pandemic with many being ordered by governors to close and others doing less businesses. The Paycheck Protection Program provides loans for small businesses with 500 or fewer employees to keep workers on the payroll. The problem is many small businesses owners say there isn’t enough money to go around. The two rounds have around $660 billion to give away. The PSA would give businesses help for up to six months, while the PPP only offers help for eight week. The PSA also applies to middle market companies, which Warner said were left out of the PPP.
“Instead of allowing businesses to go into free fall and trying to pick up the pieces later, we’re proposing a guardrail at the edge of the precipice,” Blumenthal said.
Warner told reporters during a conference call Friday Congress has acted unanimously in the last couple of bills and a minimum of about $2.7 trillion dollars into the economy, which has helped but not enough.
“We’re barely keeping the economy going, and we think now is the time to pause and say there may be a better, more efficient and effective way,” Warner said.
In addition to paying employees salaries, the grants would also give businesses up to an additional 20% of revenues to cover fixed operating costs such as rent, utilities, insurance policies and maintenance.
Businesses that have received loans through the PPP or other relief will not be eligible unless they have used up that money.
Warner said they’re still working out how much this would cost, but he said estimates around a similar proposal were $400-500 billion a quarter. He believes this will be cheaper than any current array of programs.
The senators say a similar bill is being proposed in the House.
Copyright 2020 by WMAL.com. All Rights Reserved. Photo: AP
