House OKs changes to business virus aid subsidy program

The House gave sweeping bipartisan approval Thursday to legislation to modify a new “paycheck protection” program for businesses that have suffered COVID-related losses, giving them more flexibility to use federal subsidies for other costs and extending the lifespan of the program as the economy continues to struggle.

The compromise measure passed by a 417-1 vote and now heads to the Senate, where passage is likely next week. President Donald Trump is expected to sign it into law, though talks remain stalled on a much bigger measure to inject more than $3 trillion into the tumbling economy.

The changes to the program come as many smaller businesses such as restau- rants struggle to survive coronavirus -related ruptures to the economy as states permit shuttered businesses to reopen.

As enacted in late March, the Paycheck Protection Program required businesses to spend their loan money within an eight-week win- dow to get the loans forgiven. It also required that three- fourths of the money be spent on payroll as a means of keeping workers linked to their jobs. But small businesses say there are several fixes needed to the program.

For instance, the eight-week window created a dilemma for businesses, in particular restaurants that under the law were required to rehire all their laid-off workers even though they were either closed or limited to takeout and delivery. Many business owners feared that they would use up their loan money before being allowed to reopen, and then have to lay off employees again because their business wouldn’t bring in enough revenue to keep paying everyone.

The new measure gives business owners 24 weeks to spend the federal aid — instead of eight as originally designed — and extends the program through the end of the year while also lengthening the the maturity date and deferral period of the loans.