Treasury Secretary Steven Mnuchin said Sunday that financing programs to support businesses affected by the coronavirus pandemic could reach the $4-trillion mark, CNBC reported yesterday.
- A $4-trillion package would be equal to about 20% of the US economic output.
- This represents a massive escalation in support, as the government had initially proposed a package a quarter of this size last week.
- The package is likely to include loans for small businesses, a payroll-tax holiday, direct payments for individuals, and billions in support for affected-industries, such as airlines.
- The government is developing a bipartisan stimulus package to support businesses.
- On Sunday evening, a bill proposing a $2 trillion package failed to pass as Democratic leaders argued that the package focused too much on companies, and not enough on workers.
- This would be the government’s third aid package. An $8.3B package was signed earlier this month to provide federal aid to government health officials and vaccine R&D, followed by a $100B aid package signed last week to support emergency paid leave for workers and free testing.
- The Treasury and Federal Reserve are also working together to increase liquidity for businesses.
- Treasury has said it would provide a $10B guarantee for short-term business funding.
- The Central Bank has said it will purchase municipal bonds in exchange for financing to banks and other eligible financial institutions.
- There were 39,371 confirmed cases of coronavirus in the United States as of March 23, 15:53 GMT, according to Worldometer.
President Trump has asked lawmakers to come to an agreement Monday. An update will follow in the next issue of Fundnews. Book a free consultation to learn how your business can benefit from Fundingportal’s grant writing services.