P3 loans: House adopts extension of paycheck protection program for small business loans by unanimous consent
The House passed the extension, which would keep the program open for nominations until August 8, unanimously. The measure will now go to President Donald Trump’s office for his signature.
Throughout Wednesday, House Democrats also debated how to handle the extension, with some pushing for further changes to the schedule, according to several aides involved in the talks.
House Small Business Committee Chair Nydia Velazquez, New York Democrat and central negotiator for the program, said earlier today that she was pushing the Trump administration to obtain details of the much-sought loan level on the program so far.
“We have to assess whether the program was successful or not,” Velazquez told reporters. “We need the data to be able to conclude that this is the way forward.”
Treasury Secretary Steven Mnuchin and Small Business Administration Administrator Jovita Carranza told lawmakers last week that the data would be provided to House committees by the end of this week, but there has been frustration palpable among Democrats on how long it has taken so far.
Currently, more than 4.8 million small businesses have used more than $ 520 billion in potentially recoverable loans under the program – a central pillar of the $ 2.2 trillion in economic relief efforts. emergency operations deployed in March to try to keep the economy afloat as the pandemic led to massive business closures across the country.
The program was so critical when it was created that a first round of funding dried up in less than two weeks and had to be replenished. But interest in the program has largely waned in recent weeks, as changing rules and the inability of borrowers to come back for a second loan have limited the number of small businesses able to go through the application process.
More than $ 130 billion in allocated funds went unused when the program closed on Tuesday evening.
That, along with the looming deadline, spurred bipartisan negotiations on the next phase of the program and the relief of small businesses.
Biparty Senate negotiations have started to move quickly, as lawmakers seek to lay the groundwork for the small business portion of the upcoming stimulus legislation. Negotiations on this package are expected to start later this month after lawmakers return from the July 4 vacation.
“We’re on the verge of reaching a bipartisan deal and I know we’re going to work very hard over the holidays to get it done,” said Senator Susan Collins, a Republican from Maine who played a pivotal role in the membership. Republicans in the Senate for the short term extension, said Wednesday.
Lawmakers involved in the negotiations are looking for a more targeted use of the remaining funds in the next round of stimulus laws, focusing specifically on the companies and industries hardest hit.
