Covid-19: agreement found for new aid of 320 billion dollars to American SMEs

Backed by President Donald Trump, the new aid plan to support SMEs hit by the Covid-19 crisis should be adopted by the US Congress as soon as possible. The head of the Republican majority in the United States Senate, Mitch McConnell, announced Tuesday April 21 that he had reached an agreement with the Democrats on an envelope of more than 320 billion dollars.

This new aid plan amounts to a total of 480 billion dollars because it also includes 75 billion aids for hospitals, 25 billion for coronavirus screening capacities, as well as 60 billion in loans intended for other sectors impacted by the economy, especially in agriculture.

Fruit of tough negotiations, this text could be adopted by the Senate on Tuesday during a session which will start at 4 p.m. (8 p.m. GMT). It is expected to be voted on in the Democrat-controlled House of Representatives later this week.

"I welcome this agreement between the two parties and hope that the Senate will adopt it quickly once parliamentarians have studied the final text," said Mitch McConnell, detailing it. 

A text which must be adopted unanimously

Donald Trump had urged Congress earlier Tuesday to adopt this new aid plan, promising that he would then promulgate it. A message that was able to convince republican parliamentarians who were still reluctant.

To be approved in the Senate, the text must be adopted unanimously, hence the importance for Mitch McConnell to ensure that no voice will come to oppose it.

These new funds will be added to the 349 billion already spent to finance loans for SMEs, which had been approved in late March as part of a historic plan of more than $ 2 trillion in support of the American economy.

Once this new aid to SMEs is finally adopted, parliamentarians want to start negotiating a new broad plan to support the US economy. 

Donald Trump detailed, in a tweet Tuesday, some of his top priorities for this next installment: "budget cuts for states and local communities", investments "in infrastructure", "tax assistance" intended for the sectors of catering, entertainment and sports, as well as "reductions in payroll costs to increase economic growth".

I urge the Senate and House to pass the Paycheck Protection Program and Health Care Enhancement Act with additional funding for PPP, Hospitals, and Testing. After I sign this Bill, we will begin discussions on the next Legislative Initiative with fiscal relief ....

With AFP

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