House OKS ‘paycheck protection’ fix
Compromise measure heading to the Senate
WASHINGTON — House Speaker Nancy Pelosi, D-calif., won 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 leaders face a choice between sending the House measure directly to President Donald
Trump or trying to pass a companion measure that could be more difficult to advance.
Trump is expected to sign the paycheck protection bill into law, though talks remain stalled on a much bigger measure to inject more than $3 trillion into the tumbling economy.
A spokesman for Minority Leader Chuck Schumer, D-N.Y., said he supports the House measure and will seek a Senate vote next week, but top GOP sponsor Sen. Marco Rubio said the House measure contains technical errors that could make it more difficult for businesses to get their operating loans forgiven.
The changes to the program come as many smaller businesses such as restaurants 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 window 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.
Also Thursday, the House defeated a bill to require the Small Business Administration, which runs the payroll program, to disclose the businesses receiving aid through it.
The measure won a strong majority in the Democratic-controlled chamber but was defeated because it did not receive the two-thirds margin required to pass under fasttrack rules.