US Senate passes $500bn small-business aid package
Small business report | April 23, 2020
The US Senate passed a near $500bn coronavirus aid package on Tuesday for small businesses, including additional help for hospitals and virus testing.
“I welcome this bipartisan agreement,” Senate majority leader Mitch McConnell said Tuesday as the bill was passed.
What can US small businesses do during the pandemic – and why is it so confusing?
The aid package is the second for small businesses, which have been hit hard by the pandemic and shed millions of jobs. The first proved controversial, with big firms including Shake Shack and Ruth’s Chris Steak House receiving millions while many small businesses missed out. Shake Shack has now handed back the $10m loan it received. Ruth’s Chris – which had revenues of $468m last year – received $20m.
Treasury secretary Steven Mnuchin said that larger firms would now be blocked from using the new program.
Small businesses in hard-hit New York were skeptical that the new money would get to them in time, having missed out on the first wave of payments. “This is going to be the end of us all,” said Brian Colgan, who runs ACME, a props and furniture rental business in Brooklyn.
He said none of his small business contacts had received funds.
Nichelina Mavros, the co-owner of Dépanneur, a Brooklyn grocery store, said it was clear the first bailout favored big business. “Ninety eight per cent of New York businesses are small businesses. In my network, not one of them got the money.”