Government

Senate approves bill to ease restrictions on emergency small business loans

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June 4, 2020

The U.S. Senate passed a bill Wednesday to ease restrictions on emergency small business loans to prevent mass layoffs during the coronavirus pandemic, sending the bill to President Donald Trump for his signature, according to a Politico report.

The measure, which the House approved last week, will relax rules under the $670 billion Paycheck Protection Program to allow more time to spend the money and use it for more expenses while still qualifying to have the loans forgiven.

Meanwhile, most of the direct cash assistance has already been spent or committed, according to a report in The Wall Street Journal.

More than $1 trillion in direct aid for unemployment benefits, forgivable business loans and cash payments for households, hospitals, cities and states has already been spent or committed. Congress extended the original $1.2 trillion in the Cares Act sum in April with an additional $400 billion for small businesses and hospitals.

Of the total $1.6 trillion, about 70%, has already been distributed, according to a Wall Street Journal analysis.