�������ýҕ�l

The Senate gave final approval on Wednesday to a measure that would relax the terms of a federal loan program for small businesses struggling amid the pandemic, sending the bill to President Trump’s desk for his signature. The legislation, approved overwhelmingly by the House last week to enact changes to the Paycheck Protection Program, would extend to 24 weeks from eight weeks the period that small businesses would have to spend the loan money. Without that change, the time for businesses to use the funds would have lapsed in only a few days. (Cochrane, 6/3)

The legislation extends the duration of PPP loans to 24 weeks from eight weeks, giving small businesses more time to use the money and still have the loans forgiven while helping them better navigate the uncertainties around reopening. It also extends the deadline to rehire workers to Dec. 31 to qualify for loan forgiveness. Moreover, many businesses that sought loans were constricted by Small Business Administration regulations mandating that 75% of the expenses go to payroll. The bill reduces the level of Paycheck Protection Program funds that must be used for payroll to 60% from 75%. (Andrews, 6/3)

Sen. Ron Johnson, R-Wis., had objected a few hours earlier when Senate Minority Leader Charles E. Schumer, D-N.Y., had asked for unanimous consent to pass the bill that advanced out of the House 417-1 last week. Johnson said on the floor that he wanted additional changes put into the loan program, but hinted he could drop his opposition following more negotiating. (Saksa and Shutt, 6/3)

Chamber officials pointed out that the Treasury Department has changed the rules and guidance governing the loans repeatedly during in the past eight weeks. “Businesses, individuals and state and local governments should be held to account for complying with the rules and guidance as they existed at the time of their action, not as subsequently modified,” said Neil Bradley, the chamber’s chief policy officer. (Wire, 6/3)

The central aim of the legislation is to allow businesses 24 weeks — instead of eight — to spend money they receive under the Paycheck Protection Program and have the loans forgiven. The restaurant industry and other business groups had pushed for the change, saying that eight weeks was not enough time, given that the coronavirus pandemic has forced businesses to stay shut longer than anticipated when the Paycheck Protection Program was created in late March as part of the $2 trillion Cares Act. (Werner, 6/3)

The program's rollout has been hampered by technical issues and glitches, but small business owners have clamored for the aid and the program's funding has already been replenished once by lawmakers after it ran dry. The push for bipartisan fixes to the program comes as business owners have complained that the terms of use are overly restrictive and do not offer enough flexibility amid the crisis. (Foran, Fox and Barrett, 6/3)

The bill would also eliminate restrictions limiting non-payroll expenses to 25 percent of the loan and the loan's terms to two years. It would also extend the deadline to rehire employees to align with the expiration of enhanced unemployment insurance, which was created through the CARES Act and in some cases is higher than the median wage in 44 states. (Clark, Tsirkin and Thorp V, 6/3)

Business groups celebrated Wednesday's Senate passage of legislation to provide more flexibility for the coronavirus relief Paycheck Protection Program (PPP), which trade organizations have been lobbying for. PPP is intended to help small businesses and the bill, which the House passed last month, extends the time allowed for firms to spend the loans, as well as where they can be used. (Gangitano, 6/3)

While many small-business owners complained of missing out on crucial funding from the Paycheck Protection Program, others mistakenly ended up receiving their money twice — or multiple times. The issue stems from the hectic early weeks of the program, when funding ran out quickly and borrowers were not hearing back from their banks, industry sources told NBC News. Although businesses must certify they are only applying for one loan, some small-business owners applied at more than one bank to ensure they could secure a financial lifeline amid the economic shutdown. (Popken, 6/3)

Nine weeks after Congress approved its largest-ever economic relief measure to counter the coronavirus pandemic, most of the direct cash assistance aimed at keeping the economy afloat has been spent or committed. The so-called Cares Act included a projected $1.2 trillion in direct aid, ranging from expanded unemployment benefits and forgivable business loans to cash payments for households, hospitals, cities and states. Congress topped up that sum in April with an additional $400 billion for small businesses and hospitals. (Davidson and Kiernan, 6/3)

Five Republican senators urged the Trump administration to “sunset all” federal rules waived during the coronavirus pandemic and bump them back to the beginning of the federal rulemaking process. In a two-page letter to sent Wednesday to Russell Vought, the acting head of the White House budget office, the GOP senators criticize regulations broadly as “burdens,” arguing that the pandemic has made clear the financial damage of federal rules. (Hulac, 6/4)

The hemp industry is eying the next economic relief bill or must-pass legislation as potential vehicles for provisions to expand the definition of dietary supplements to include hemp-derived cannabidiol products. The industry, trying to regain ground lost to the pandemic, is also asking the Agriculture Department to make it eligible for COVID-19 aid. (Ferguson, 6/4)