House votes to ease restrictions on COVID-19 small business loans

The U.S. Paycheck Protection Program is one of the core parts of the $2 trillion pandemic rescue package passed in March. /Reuters

The U.S. House of Representatives on Thursday passed a bill aimed at giving small business owners more flexibility in how they spend money they receive as part of the COVID-19 aid program.

The bill sailed through in an almost unanimous 417-1 vote. The Senate has put forward a plan similar to the House bill, but has not yet passed it. Senators will not convene again until next week.

The U.S. Paycheck Protection Program, one of the core parts of the $2 trillion pandemic rescue package passed in March, currently includes directives on how business owners have to use their loans in order to get them forgiven.

The new measures will among other things reduce the share of aid money small business are required to spend on payroll from 75% to 60%, as well as extend the window businesses have to use the funds from two months to six months. Beneficiaries of the aid program will also have more time to repay their loans.

Democrats and Republicans approved the tweaks to the small business loan program even as they struggle to find a consensus on the next phase of relief from the economic devastation wrought by the pandemic.

Source(s): CNBC