WASHINGTON (Reuters) – The United States Senate on Wednesday unanimously approved legislation giving small businesses up to 24 weeks to use paycheck protection program loans created during the coronavirus pandemic, against the current delay of eight weeks.
The legislation, already passed by the House of Representatives, now goes to President Donald Trump to enact it. The program was created in March to support small businesses during the pandemic and encourage them to retain their employees.
Under the PPP program, loans for restaurants, hotels and other small businesses would be converted into federal grants if recipients adhere to a set of conditions, including spending the loan amount on time.
Democratic Senator Ben Cardin said Washington has so far provided 4.4 million forgivable loans worth a total of $ 510 billion. He called it a “lifeline†for struggling businesses during the pandemic.
He said gyms, caterers, museums and other small businesses had been particularly hampered by the eight-week requirement to use the loans and needed more time to fulfill the terms of the loans.
A total of $ 659 billion has been provided by Congress for the loan program, which is part of a larger emergency coronavirus assistance totaling around $ 3 trillion to date.
Congress is expected to debate additional aid in the coming weeks, possibly including more federal funds to help state and local governments whose revenues have fallen due to increased demand for services and social blockages.
The bill also gives businesses more flexibility to use the loans to pay for expenses other than wages.
Reporting by Andy Sullivan and Richard Cowan; Editing by Sandra Maler and Peter Cooney
