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On The Money: Infrastructure bill gains new steam as coronavirus worsens | Trump officials detail new small-business loan program | Outbreak poses threat to mortgage industry

On The Money: Infrastructure bill gains new steam as coronavirus worsens | Trump officials detail new small-business loan program | Outbreak poses threat to mortgage industry
© Greg Nash/Getty Images

Happy Tuesday and welcome back to On The Money. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line.

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THE BIG DEAL--Infrastructure bill gains new steam as coronavirus worsens: The coronavirus and its devastating effect on the economy is giving an old idea new traction with leaders in both parties: trillions of dollars in infrastructure spending.

The Hill's Mike Lillis and Scott Wong tell us about the prospects of a massive stimulus plan here.

 

LEADING THE DAY

Treasury, SBA provide information on new small-business loan program: The Treasury Department and Small Business Administration (SBA) said Tuesday that they have launched an effort to mobilize banks and other lenders to distribute small-business loans authorized by the coronavirus relief law President Trump signed last week.

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Treasury and the SBA both have launched webpages with information about the program. The SBA's webpage includes a link to the application form for borrowers and fact sheets about the program for both lenders and borrowers.

  • The coronavirus relief package created a nearly $350 billion program under which businesses with 500 or fewer employees can receive loans of up to $10 million. 
  • The loans will be forgiven if businesses use the funds to cover payroll costs and other operating expenses in the eight weeks following loan origination.

The Hill's Naomi Jagoda tells us more about the program and the new details here.

 

Democrats, Trump set to battle over implementing $2T relief bill: The $2 trillion coronavirus relief package is setting up a new battle over implementation between the Trump administration and congressional Democrats likely to reverberate into the election.

President Trump and Democratic leaders are already jockeying over the management of a massive direct lending and credit facility program that Treasury Secretary Steven MnuchinSteven Terner MnuchinPressure builds for coronavirus relief with no clear path to deal Top GOP senator warns government funding deal unlikely this week Overnight Health Care: CDC panel recommends who gets vaccine first | McConnell offering new relief bill | Hahn downplays White House meeting on vaccines MORE will run with the Federal Reserve. It will have more than $4 trillion at its disposal.

The administration and congressional Democrats are likely to spar over other key elements of implementation, such as how long it takes to send out rebate checks, set up a generous expansion of unemployment benefits and provide forgivable loans to small businesses.

The Hill's Alexander Bolton explains here.

 

Coronavirus poses new threat to mortgage industry: A flood of missed home-loan payments caused by the coronavirus outbreak is threatening to bankrupt U.S. mortgage lenders and deepen the economic toll of the pandemic.

Grueling business closures and social restrictions imposed to slow the pandemic have left millions of homeowners jobless and short on their mortgages.

The economic rescue package signed by President Trump on Friday allows any homeowner with a federally backed home loan facing financial hardship because of the pandemic to apply for 180 days of loan forbearance.

That means payments on a substantial portion of the $7 trillion in federally guaranteed mortgages could stop for at least six months, leaving the government and mortgage servicers on the hook for billions in losses.

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I explain why an extended downturn could set off a chain of economic and financial crises akin to the 2007-08 panic and recession.

 

GOOD TO KNOW

 

ODDS AND ENDS