Democrats Have Blocked Additional Funding For Small Business Relief Choosing Instead To Use The Badly Needed Funds As Leverage To Push Their Own Progressive Priorities Over Saving Jobs

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The Facts:

SEEING AN "OPPORTUNITY" TO PUSH THEIR PROGRESSIVE AGENDA, JOB-KILLING SENATE DEMOCRATS BLOCKED ADDITIONAL FUNDING FOR SMALL BUSINESSES CRUSHED BY THE ECONOMIC FALLOUT FROM THE CORONAVIRUS

The job-killing Democrats blocked a request from Majority Leader Mitch McConnell to unanimously approve an additional $250 billion for the Paycheck Protection Program.

As a result, one of the sweeping business rescue program ran out of funding after just 13 days yesterday, "leaving millions of small business owners and workers in financial limbo."

Karen G. Mills, who led the Small Business Administration under President Obama urged lawmakers to fund the program and ask questions later saying, "congress has to act as soon as possible."

CNN Business Anchor Julia Chatterley: It is " unacceptable " to hold up funding when jobs, small businesses and the economy rely on it.

Democrat leadership explained that they blocked the funding in order to capitalize on " leverage " they have over Republicans in Congress because of unique circumstances presented by the coronavirus outbreak.

Pelosi and Schumer have both " dug their heels in " and, given the ongoing standoff, it is unlikely small businesses will see additional relief until Congress returns to negotiate a fourth relief package.

DEMOCRATS WON'T PASS A CLEAN BILL PROVIDING ADDITIONAL RELIEF TO SMALL BUSINESS BUT HAVE PROPOSED A SLEW OF OTHER POLICIES INCLUDING TAX BREAKS FOR THE RICH, AN ILL-TIMED INFRASTRUCTURE PLAN, AND ELIMINATING ELECTION SAFEGUARDS

Pelosi floated a full rollback of the limit on the State and Local Tax Deduction as part of the coronavirus relief effort, the limit imposed by the 2017 tax law that hurt high earners in states like New York and California.

The Joint Committee on Taxation has estimated that a full repeal would represent $77 billion in tax savings, primarily to Americans earning more than $1 million a year.

Democrats also want to use the next round of coronavirus relief efforts to implement nationwide, federal government-mandated measures that eliminate safeguards for mail-in voting.

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SEEING AN "OPPORTUNITY" TO PUSH THEIR OWN AGENDA, JOB-KILLING DEMOCRATS BLOCKED ADDITIONAL FUNDING FOR SMALL BUSINESSES CRUSHED BY THE ECONOMIC FALLOUT FROM THE CORONAVIRUS

Job-Killing Senate Democrats Blocked A Request From Majority Leader Mitch McConnell To Unanimously Approve An Additional $250 Billion For The Paycheck Protection Program

ABC News Headline: "Senate Democrats Block GOP Move To Provide More Money For Small Businesses." ( ABC News , 4/9/20)

Vox Headline: "Why Democrats Are Blocking A Bill That Boosts Funding For Small Businesses." ( Vox , 4/9/20)

As Small Businesses Are "Crushed" By The Economic Fallout From The Coronavirus Pandemic, Democrats Blocked A Request From Majority Leader Mitch McConnell To Unanimously Approve An Additional $250 Billion For The Paycheck Protection Program . "As small businesses across the country are crushed by the economic fallout from the spreading coronavirus pandemic, and as unemployment claims skyrocket to a historic 16 million in just the last three weeks, the Senate on Thursday failed to approve an emergency funding infusion for the Paycheck Protection Program (PPP), a federal plan designed to extend loans to keep those ailing businesses afloat and workers getting paid. Democrats blocked a request from Senate Majority Leader Mitch McConnell to unanimously approve a $250 billion PPP replenishment to the original $350 billion fund, demanding more aid for hospitals and other needs be included." ( ABC News , 4/9/20)

President Trump's Paycheck Protection Program Has Helped More Than 1.5 Million Small Businesses, But The Rest Are Stuck In Limbo Until The Job-Killing Democrats End Their "Unacceptable" Refusal To Pass Further Funding

Karen G. Mills, Who Led The Small Business Administration During President Urged Lawmakers To Fund The Paycheck Protection Program And Ask Questions Later Saying, "Congress Has To Act As Soon As Possible." "Karen G. Mills, who led the Small Business Administration during President Barack Obama's first term, has a message for top Capitol Hill Democrats: Refill the so-called Paycheck Protection Program's coffers now and ask questions later … 'Congress has to act as soon as possible,' Mills told CQ Roll Call in an interview Thursday, adding that she's spoken recently with Democratic senators and Speaker Nancy Pelosi's office. 'What I'm saying is: Number one, get the money replenished.'" ( Roll Call, 4/16/20)

CNN Business Anchor Julia Chatterley: This Program Was Built To Try And Save Small Businesses, To Save Jobs, And It's "Unacceptable" To Hold Up Funding When Jobs, Small Businesses And The Economy Rely On It. ANDERSON COOPER "In the meantime, billions of dollars in the stimulus program to help small businesses is already tapped out. $349 billion is gone in just two weeks. I want to get to CNN Business anchor Julia Chatterley. Julia, What are small business owners supposed to do now?" JULIA CHATTERLEY: "Anderson They wait. Some will let go of workers. Some will fail. That's the stark truth, that many of the millions of businesses in this country face. I spoke to one of the country's largest online lenders today and he said, look, American small businesses they're fighters but they've have maxed out credit cards, they've borrowed from friends, they've crowd sourced from their local communities, and there's no time left. Today of all days, given that these small businesses represent half of the employment in the United States, I can give you 22 million reasons why this money needs to be extended and those 22 million reasons represent the people that have claimed for unemployment benefits just in the last four weeks. This program was built to try and save small businesses, to save jobs, and it's unacceptable, even with the fact we know states and health care areas need more money too to allow this program to go on any further when jobs, small businesses and the economy and the recovery rely on it." COOPER: "Julia Chatterley, I appreciate it. thanks." (CNN's "Newsroom," 4/16/20)

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One Of The Most Sweeping Business Rescue Programs In U.S. History, Ran Out Of Funding After Just 13 Days Yesterday "Leaving Millions Of Small Business Owners And Workers In Financial Limbo." The paycheck protection program, "One of the most sweeping business rescue programs in U.S. history ran out of money Thursday, leaving millions of small business owners and workers in financial limbo. The $349 billion Paycheck Protection Program was completely depleted after just 13 days in operation, as Democrats in Congress refused to allow a general extension of funding without approving additional money for other recovery programs as well." ( PBS , 4/16/20)

Before The Funding Ran Out The Small Business Administration, Who Administers The Program, Has Approved At Least 1.6 Million Businesses For Loans To Keep Their Business Afloat. " But Thursday morning, the Small Business Administration sent out a notice that it is currently 'unable to accept new applications…based on the available appropriations funding.' The SBA said that before the freeze, at least 1.6 million businesses were approved for loans through the program. But the money went on a first-come-first-served basis, and with 30 million small businesses in the country, millions of others were left waiting with no indication of when they could see relief money." ( PBS , 4/16/20)

Businesses Are Eligible For Loans For Up To $10 Million And Each Loan Will Cover Up To Two Months Of Their Average Monthly Payroll Costs From The Last Year Plus An Additional 25% Of That Amount. "How large can my loan be? Loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. That amount is subject to a $10 million cap. If you are a seasonal or new business, you will use different applicable time periods for your calculation. Payroll costs will be capped at $100,000 annualized for each employee." ( Treasury Department , Accessed 4/2/20)

The Paycheck Protection Program Provides A Direct Incentive For Small Businesses To Keep Paying Workers As The Government Will Forgive 100% Of The Loans If All Employees Are Kept On Payroll For Eight Weeks. "The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. The Paycheck Protection Program will be available through June 30, 2020." ( Small Business Administration , Accessed 3/30/20)

Democrat Leadership Explained That They Blocked The Funding In Order To Capitalize On "Leverage" They Have Over McConnell Because Of The Unique Circumstances Presented By The Coronavirus Outbreak

Vox Reported Democrats See An Opportunity To "Use The Leverage They Have" In Congress To Push Their Own Priorities In Addressing Small Business Funding. "At first glance, it's a surprising move, since Democrats support providing more funding to small businesses and workers experiencing severe economic trouble caused by the fallout of the coronavirus outbreak. But the answer is simple: Democrats want to use the leverage they have in Congress so that Republicans don't just approve more money for small businesses while leaving out other programs that also desperately need more funding." ( Vox , 4/9/20)

Democrat Leadership Explained That Blocking Funding For Small Businesses Was An "Opportunity" To Push For Their Stimulus Priorities. "This approach was evident Thursday when Senate Democrats blocked Majority Leader Mitch McConnell's attempt to pass a standalone small-business funding bill via unanimous consent. Democratic leaders explained that the move was an opportunity to push for more expansive stimulus than Republicans have otherwise considered, a tactic they also used with the CARES Act." ( Vox , 4/9/20)

Pelosi And Schumer Have "Dug Their Heels In" And, Given The Ongoing Standoff, It Is Unlikely Small Businesses Will See Additional Relief Until Congress Returns To Negotiate A Fourth Relief Package

Given The Ongoing Standoff Between The Two Parties, It's Looking Like Additional Relief Funds Might Not Get Passed By Congress Until Lawmakers Begin Considering A Fourth Stimulus Package. "Given the ongoing standoff between the two parties, it's looking like additional coronavirus relief funds might not get passed by Congress until lawmakers begin considering a fourth stimulus package. It's clear that workers and businesses are going to need significantly more funding in order to weather the ongoing economic downturn. As of this week, more than 220,000 small business loans have already been processed, and over 16 million people have filed for unemployment insurance in recent weeks." ( Vox , 4/9/20)

Lawmakers Are Expected To Be Back At The Capitol On April 20, And Will Continue To Negotiate The Details Of The Next Comprehensive Relief Package. "Lawmakers are expected to be back at the Capitol on April 20, and negotiations on the next stimulus will likely continue between now and then. As Vox's Ella Nilsen has reported, the fourth package is likely to include more money for several provisions included in the CARES Act, including direct payments and additional funds for small businesses." ( Vox , 4/9/20)

Pelosi And Schumer Dug Their Heels In This Week Saying They Would Not Back Down From Their Demands Over An Interim Coronavirus Relief Bill In Congress, Continuing A Standoff With Republicans On The Additional Aid. "House Speaker Nancy Pelosi, D-Calif., and Senate Minority Leader Chuck Schumer, D-N.Y., said Monday that they would not back down from their demands over an interim coronavirus relief bill in Congress, continuing a standoff with Republicans on the additional aid." ( NBC News , 4/13/20)

DEMOCRATS WON'T PASS A CLEAN BILL PROVIDING ADDITIONAL RELIEF TO SMALL BUSINESS BUT THEY HAVE PROPOSED A SLEW OF OTHER PRIORITIES INCLUDE TAX BREAKS FOR THE RICH AND BROADBAND ACCESS

Pelosi Has Floated A $77 Billion Tax Break For Wealthy Americans As Part Of The Coronavirus Relief Effort

Pelosi Has Floated A Full Rollback Of The Limit On The State And Local Tax Deduction, Or SALT, As Part Of The Coronavirus Relief Effort, The Limit Imposed By The 2017 Tax Law That Hurt High Earners In States Like New York And California. "Speaker Nancy Pelosi suggested the next package include a retroactive rollback of a tax change that hurt high earners in states like New York and California. A full rollback of the limit on the state and local tax deduction, or SALT, would provide a quick cash infusion in the form of increased tax rebates to an estimated 13 million American households - nearly all of which earn at least $100,000 a year". ( The New York Times , 3/30/20)

The Joint Committee On Taxation Has Estimated That A Full Repeal Would Represent $77 Billion In Tax Savings, Primarily To Americans Earning More Than $1 Million A Year. "The congressional Joint Committee on Taxation estimated last year that a full repeal of the SALT limit for 2019 alone would reduce federal revenues by about $77 billion. Americans earning $1 million a year or more would collectively reap $40 billion of those benefits. Most of the rest would go to households earning $200,000 or more." ( The New York Times , 3/30/20)

Many Liberal Economic Policy Analysts Oppose Lifting The SALT Cap, Calling It A "Regressive Tax Policy." "Many liberal economic policy analysts also oppose lifting the SALT cap, calling it regressive tax policy. Seth Hanlon, a senior fellow at the liberal Center for American Progress, said the same logic was also a reason not to lift the limit in the next economic rescue bill. That is particularly true because consumption data show that low- and middle-income Americans are more likely than higher earners to spend benefits from the government immediately and stimulate economic activity." ( The New York Times , 3/30/20)

Democrats Also Want To Use The Next Round Of Coronavirus Relief Efforts To Implement Nationwide, Federal Government-Mandated Measures That Eliminate Safeguards For Mail In Voting

Real Clear Politics Headline: "In Economic Rescue Talks, Dems Push Vote-by-Mail Provisions." ( Real Clear Politics , 4/10/20)

Democrats Want To Use The Next Round Of Coronavirus Relief "To Bolster Mail-In Voting." "Democrats want to bolster mail-in voting and take other steps to make balloting easier this November in the next round of congressional efforts to revive the economy and battle the coronavirus pandemic, House Speaker Nancy Pelosi said." ( Real Clear Politics , 4/10/20)

As Part Of The Next Relief Package, Democrats In Congress Have Been Pushing For Ballots To Be Mailed To Every Registered Voter For The November Election. "Democrats in Congress have been pushing for ballots to be mailed to every registered voter for the November election. Republicans have expressed little desire to require states to make any changes to their election process." ( Real Clear Politics , 4/10/20)

MIT Professor Charles Stewart III Highlighted That Implementing An All Mail System By November "Is Going To Be Disruptive." "Charles Stewart III, a professor of political science at the Massachusetts Institute of Technology, expressed optimism that states could gear up to expand mail and absentee voting for the coming primary elections, which tend to have relatively low turnout. The November general election will be another matter, he said. 'I think that once people take a deep breath and consider what's going to be done in November, they're going to realize that the big lift necessary to expand the amount of mail voting by a factor of four, five or six in some states is going to be disruptive,' said Mr. Stewart, who studies both voting technology and election administration." ( The New York Times , 3/9/20)

Election Officials Say Fraud In Voting By Mail Is "Vastly More Prevalent Than The In-Person Voting Fraud." "While fraud in voting by mail is far less common than innocent errors, it is vastly more prevalent than the in-person voting fraud that has attracted far more attention, election administrators say." ( The New York Times , 10/5/12)

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