The question Congress will face when it returns in January is whether the latest Covid-19 wave justifies a new rescue beyond the $1 trillion of emergency small business assistance lawmakers have approved since March 2020. Most of the programs have been tapped out or are winding down. The giant Paycheck Protection Program stopped accepting applications for aid in May, and the Covid Economic Injury Disaster Loan program closes to applicants this month.
Groups representing restaurants, gyms and other businesses have been warning for months that their members still need help because the earlier programs didn’t meet their needs and economic headwinds have persisted, including rising costs and staffing shortages. They believe Omicron could be a wake-up call for Congress and lobbyists see a window of opportunity now that President Joe Biden’s social spending and climate plan is in limbo…
Omicron so far has not triggered widespread lockdowns to impose social distancing. And while a number of Republicans are championing the relief effort, some are likely to resist further federal spending — thanks in part to the emergence of billions of dollars of potential fraud in earlier programs.
It would likely be aimed at specific industries if it gained traction, unlike the Paycheck Protection Program, which made forgivable loans available to a wide range of sectors.
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