Connect with us
Financial Press
capitol-report:-house-passes-bill-extending-paycheck-protection-program,-sending-to-trump-for-signature
capitol-report:-house-passes-bill-extending-paycheck-protection-program,-sending-to-trump-for-signature

Breaking

Capitol Report: House passes bill extending Paycheck Protection Program, sending to Trump for signature

Capitol Report

Senate acted Tuesday to approve an extension for the PPP, aimed at aiding small businesses hurt by the coronavirus crisis

People wearing face masks walk past a reopened Santa Monica Pier restaurant last week in Southern California.


Getty Images

The Democratic-run House on Wednesday approved by unanimous consent a bill that extends a federal government program that provides forgivable loans to small businesses hurt by the coronavirus crisis.

The House’s move comes after Democratic senators late Tuesday unexpectedly secured unanimous approval in the Republican-run Senate for an extension of the Paycheck Protection Program. The deadline for applying for PPP loans was Tuesday, but lawmakers are aiming to push it out to Aug. 8.

The measure now goes to President Donald Trump’s desk to get signed into law.

Earlier Wednesday, Majority Leader Steny Hoyer had said House Democrats were still in talks with Republican lawmakers and the Trump administration over whether to bring the extension for the PPP to the floor. The House has been expected to go on a two-week recess after Wednesday.

“We’re looking at that, and we’ll make that determination I would think within the next couple of hours,” Hoyer, the No. 2 House Democrat, said on a weekly conference call with reporters.

Hoyer had said Rep. Nydia Velazquez, a New York Democrat who chairs the House Small Business Committee, had concerns that details about borrowers have not been provided by the administration. The Maryland congressman said there was also concern over whether an extension would be seen as giving the administration approval to spend the PPP’s remaining funds differently.

“There’s some indication that they’re saying that there’s not additional money needed for the Paycheck Protection Program, and they have an intent to repurpose that money. At this point in time, we don’t know what that repurposing would be,” he said.

The PPP, which received $670 billion in funding through March’s CARES Act and April’s follow-on relief package, had 4.9 million loans outstanding as of Tuesday, totaling $521 billion, according to Small Business Administration data. Lawmakers have been putting forth different proposals on how to spend the leftover money. Sen. Chris Coons, a Delaware Democrat, has proposed allowing businesses that have spent their first loan to get more money. Sen. Kevin Cramer, a North Dakota Republican, has offered a bill, with Democratic co-sponsors, that would forgive loans of up to $150,000 if business owners submit a one-page form.

The program has drawn criticism over how publicly traded companies scored loans, as well as over sending money to less hard-hit areas and allegedly discriminating against businesses owned by women and minorities. The Trump administration has relented to public pressure and pledged to provide more details about PPP borrowers, but government watchdogs say still more transparency is needed.

Related:Watchdog says Washington’s growing swampier, even as coronavirus lockdowns let Congress climb off ‘hamster wheel of fundraising’

U.S. stocks
SPX,
+0.50%

DJIA,
-0.30%
,
which closed mostly higher on Wednesday, have rallied from their March lows thanks in part to optimism around Washington’s aid efforts.

Written By

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Breaking

Published: Sept. 19, 2020 at 1:19 p.m. ET The same order is blocking downloads of WeChat, owned by Tencent Holdings, also based in China...

Breaking

Published: Sept. 16, 2020 at 4:28 p.m. ET This may not be the most challenging moment ever for investors, but there aren’t many good...

Breaking

NewsWatch Published: Sept. 19, 2020 at 5:00 p.m. ET MARKETWATCH FRONT PAGE Your bright ideas about investing are actually costing you money See full...

Breaking

Corrected to include Dominion Energy’s dividend-cut announcement in July. Utility stocks are being left behind as equity indexes have risen to records and bond...