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Senate Approves Extending Paycheck Protection Program

  • July 01, 2020

The unexpected approval of the extension, which required agreement from all 100 senators, came as lawmakers began to debate the contours of another coronavirus relief package. With multiple parts of the $2.2 trillion stimulus law set to expire at the end of July and new outbreaks forcing many states to slow efforts to reopen their economies, lawmakers widely recognize that another measure will be necessary.

“I came here thinking that we would not be able to get agreement,” said Senator Jeanne Shaheen, Democrat of New Hampshire, who joined Senator Susan Collins, Republican of Maine, and other senators involved in the program’s creation on the Senate floor on Tuesday evening.

Of the initiatives created by the stimulus law, the Paycheck Protection Program has emerged as a bipartisan centerpiece despite a chaotic start. Facing a deluge of requests for assistance, the program ran out of money, and Congress moved in April to inject an additional $320 billion into it. Already, the program, administered by the Small Business Administration, has allocated $520 billion in loans to nearly five million businesses nationwide.

Steven Mnuchin, the Treasury secretary, told lawmakers on Tuesday that he had been discussing the possibility of repurposing the funds left in the program, “extending it to businesses that are most hard hit, that had a requirement that their revenues have dropped significantly, things like restaurants and hotels and others where it is critical they get people back to work.”

The bipartisan group of lawmakers who helped draft the program have already started debating how to address it in future legislation. Senator Rick Scott, Republican of Florida, raised the prospect on Tuesday of requiring any new loans to be directed only toward businesses whose revenues have fallen, though he approved passage of the extension without that concern being addressed.

Article source: https://www.nytimes.com/2020/06/30/us/politics/ppp-extension.html

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