In this April 15, 2020, file photo, two people walk past a closed sign at a retail store in Chicago. Ever since the U.S. government launched its emergency lending program for small businesses on April 3, there have been complaints that bigger companies had their loans approved and disbursed more quickly. There is now evidence to back up those complaints. (AP Photo/Nam Y. Huh, File)
As the debate over the 'Phase 4' coronavirus stimulus package ratchets up, two distinct approaches to the economic recovery are revealing themselves.
House Democrats' $3 trillion HEROES Act, which passed in May, offers greater financial support for state governments, a higher unemployment insurance supplement, and eviction protections for renters. Senate Republicans' $1 trillion HEALS Act, which was introduced Monday night, is focused more on offering tax credits and loans to businesses hurt by the pandemic.
One of the more controversial measures of the HEALS Act, which Senate Leader Mitch McConnell has said he will not negotiate on, provides companies liability protections against potential lawsuits from employees who contract coronavirus while on the job — though this does not include cases of gross negligence.
The HEROES Act does not include these protections, instead directing the Occupational Safety and Health Administration to issue safety guidelines for employers.
The HEALS Act would provide $190 billion in funds for first-time and second draw loans from the Paycheck Protection Program, but it would restrict the second draw to firms with fewer than 300 employees that have lost at least 50 percent of their revenues in the first and second quarter.
The total loan amount would also drop from $10 million to $2 million, or 2.5 times a company's total monthly payroll costs. Loans would be forgivable if at least 60 percent goes to payroll.
The Democrats' bill would remove this threshold altogether, allowing companies to use the money however they pleased and still be eligible for loan forgiveness.
The Republican legislation also authorizes the Small Business Administration to provide up to $100 billion in low-cost loans to businesses in low-income census tracts that have fewer than 500 employees and have lost at least 50 percent of their revenue since the outbreak started.
The bill would raise the cap on the employee retention tax credit, expand the work opportunity tax credit to new groups including those left unemployed by COVID-19, and create a new payroll tax credit worth up to $1,000 for each of the first 500 employees for expenses related to employee protection, including personal protective equipment, testing, and cleaning supplies.
House Democrats targeted frontline workers directly, with $200 billion set aside for essential workers such as grocery clerks, childcare workers, nurses, and doctors. This includes a $13-an-hour pay raise for those who make under $200,000 until they receive an extra $10,000.
What measures survive the negotiation process is anyone's guess, but Democrats and Republicans alike have taken turns denigrating the others' proposals.
Senate Majority Leader Mitch McConnell has set a deadline of August 7 to pass a bill.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
Starbucks’ AI barista aims to speed service and improve experience. Nick Lichtenberg, Fortune Business Editor, explains its impact on workers and customers.
