Senate Majority Leader Mitch McConnell just introduced a sweeping, $1 trillion emergency economic aid proposal in response to coronavirus pandemic.
The proposal would include direct payments to Americans under a certain income threshold, $200 billion in loans to airlines and distressed industry sectors, and $300 in forgivable bridge loans for small businesses.
The proposal, a draft of which was obtained by CNN, underscores the scale of the economic crisis now facing individuals and businesses across the country amid the accelerating pandemic and addresses bolstering health care resources, student loans and aid, business tax provisions and temporary authority.
The proposal, however, is just an opening bid as the Senate attempts to address the coronavirus outbreak. It was drafted by Senate Republicans and the Trump administration, with no input from Democrats.
At the heart of the proposal is hundreds of billions of dollars directed toward “recovery rebates” of up to $1,200 for individuals and $2,400 for couples beneath a certain income threshold.
The proposal also includes $300 billion to be used for loans to small businesses, however structured, as well as private nonprivate organizations.
The program would be structured so businesses could take out loans from banks and lenders that would be guaranteed by the Small Business Administration. Those loans must be used, according to the proposal, for to pay salaries, mortgage payments, other debt obligations and payroll support including paid sick, medical and family leave, as well as health care benefits.