In last week’s bulletin, we discussed new developments on the progress of the HEROES Act, the current version of the second stimulus bill that Congress continues to negotiate for approval.
After reviewing the construction of the bill, the HEROES Act contains significant relief for small businesses, including restaurants. Restaurants in Southwest Florida have been strongly impacted over the past few months, some of which have permanently closed.
Nonetheless, the new stimulus bill recognizes the struggles that restaurants have endured in 2020. This bill notably includes the RESTAURANT Act, which proposes to provide $120 billion to independent restaurants, bars, taverns, food trucks, and other similar establishments across the country.
Counteroffers
The HEROES Act was initially introduced in the House of Representatives’ $3.4 trillion relief bill. There was strong disagreement about this monumental figure, so the bill was subsequently reduced over the past few months. The House recently announced an updated version of the bill that amounts to $2.2 trillion.
However, the Senate is still unlikely to approve such a bill, as we noted last week. Based on initial reactions throughout the media and Washington DC, it is clear that this version of the bill will not pass.
Nonetheless, the effort to come to an agreement is not hopeless. Democrats and Republicans in Congress continue to exchange numbers that may lead to bipartisan approval in both the House and the Senate.
POTENTIAL SOLUTIONS
President Trump voiced his approval of a potential stand-alone bill for the second round of $1,200 stimulus checks to Americans as soon as possible. The President also proposed $25 billion in airline payroll support and $135 billion for the Paycheck Protection Program, a program geared towards supporting small businesses via forgivable loans.
Treasury Secretary Steven Mnuchin continues to negotiate with Congress but urges Democrats to “immediately vote” on the authorization of $130 billion in unused funds from the Paycheck Protection Program. Approval of this program will allow funds to reach small businesses for business expenses, including payroll, mortgage payments, and other similar expenses.
The Senate will resume its session next week on October 19 after conducting confirmation hearings for Amy Coney Barrett begin on October 12. Following the hearings, the Senate will resume for a potential vote on updated relief packages.
Both sides are looking for a deal in the near future, especially since an election is at stake for many elected officials. AT Vernon Litigation Group, we are committed to keeping you updated on the developments and effects of any approved legislation.