On The Money: Small business loan program out of money | Lawmakers at impasse over new funds | Senate adjourns for week with no deal | Trump to leave decision on reopening economies with governors

On The Money: Small business loan program out of money | Lawmakers at impasse over new funds | Senate adjourns for week with no deal | Trump to leave decision on reopening economies with governors
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Happy Thursday 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--Small business loan program out of money amid impasse over new funds: The initial $349 billion pool for emergency loans for small businesses derailed by the coronavirus pandemic has run dry as Republicans and Democrats squabble over how to replenish the relief program.

The Hill's Jordain Carney and I have more here.

 

No deal after deadline passed: The fight over hundreds of billions in small-business funding will carry into next week after the Senate adjourned for the week on Thursday without an agreement. 

The Senate held a brief pro forma session on Thursday -- which are constitutionally mandated absent a larger adjournment agreement.

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But Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellSchumer to GOP: Cancel 'conspiracy hearings' on origins of Russia probe Overnight Health Care: Trump says US 'terminating' relationship with WHO | Cuomo: NYC on track to start reopening week of June 8 | COVID-19 workplace complaints surge 10 things to know today about coronavirus MORE (R-Ky.) did not try for a second time to pass a new $250 billion for the small-business program -- a request that would have been blocked by Democrats absent a deal on the funding package, which has not yet been reached.

 

What each side wants: 

  • Republicans want to pass a stand-alone bill that would include $250 billion in additional money for the program. 
  • Democrats want to add in $100 billion for hospitals, $150 billion for states and a boost in food assistance funding, along with conditions meant to steer more loans toward minority- and women-owned businesses.

 

What comes next: Banks, credit unions and other lenders will be unable to keep sending loan applications through the system, though they can continue to prepare them when the program is replenished. 

But Trump told senators during a phone call Thursday that he's open to attaching money for hospitals and state and local governments to an additional $250 billion for the program, creating a window for a potential deal.

 

LEADING THE DAY

5.2 million more file for unemployment: Another 5.2 million people filed initial unemployment claims for the week ending April 11, according to the Department of Labor, adding to the sharpest and most severe rise in joblessness in the nation's history.

  • Thursday's report is the fourth in a row showing more than a million initial claims, a level that had not been reached previously.
  • Overall, more than 22 million people have filed for initial benefits in the span of just four weeks, accounting for about one of every seven workers in the economy, and nearly wiping out the 22.4 million jobs created in the 11-year recovery that followed the last recession in 2009.
  • Economists believe that the unemployment rate is likely already up to at least 15 percent, a stunning rise from a 50-year low of 3.5 percent earlier this year. Some predict that number could end up reaching as high as the Depression-era peak of 20 percent.

The Hill's Niv Elis has more on the brutal report here.

 

Trump guidelines on reopening economy to let governors make final decisions: President Trump on Thursday unveiled guidance for a phased reopening of parts of the U.S. economy that largely leaves the final decisions up to governors, according to a copy of the guidelines obtained by The Hill.

  • The 18-page document, which was distributed to governors during a conference call on Thursday afternoon, recommends that states see a downward trajectory in the number of confirmed coronavirus cases as well as flu-like symptoms before they move to lift stay at home orders and other restrictions meant to curb the spread of the virus. 
  • It also recommends that states and regions see a decline in documented cases over a period of 14 days, ensure that hospitals can treat all patients without crisis care, and have a robust testing program in place including antibody tests for at-risk healthcare workers. 

The guidelines include specific recommendations for individuals and employers. They are also broken up into three phases. Read more on the guidelines from The Hill's Reid Wilson, Brett Samuels and Morgan Chalfant.

 

GOOD TO KNOW