Published 10:35 IST, July 1st 2020
US Senate extends Paycheck Protection Program hours before it was set to expire
The United States Senate on June 30 passed legislation extending the deadline for businesses to apply for coronavirus aid under the Paycheck Protection Program
The United States Senate on June 30 passed legislation extending the deadline for businesses to apply for coronavirus aid under the Paycheck Protection Program(PPP), whose deadline was scheduled to lapse on Tuesday. The bill was reportedly passed unanimously extending the deadline of PPP to August 8. According to international media reports, there is $130 billion unspent money in the funds.
Highlighting that there is a need for another round of help to small businesses, Senator Ben Cardin, the top Democrat on Senate Small Business Committee said that extension will delay the deadline until senate goes to its August recess. Commenting on the bill, he said that the resources and need, both are there, there was only the need to change the date.
No objections
Meanwhile, Senator Marco Rubio, the chairman of Small businesses Committee asserted that he had no objections to extending the application deadline but that "the vast majority of #SmallBusiness that wanted to benefit from the program have already used it." Experts have opined that they weren’t initially sure if the bill would be passed by the senate.
In past, the Democrats have tried to pass many coronavirus related bills, only to be blocked by the Republicans including the one proposed earlier this week. However, after it was passed, Sen. Jeanne Shaheen said that he was glad that they had an agreement. He added that he came there "thinking we would not be able to get the agreement.
The bill faced slight obstruction after Senator Rick Scott tried to change the bill to include a requirement that any loan would be granted to businesses which underwent a downturn in revenue due to coronavirus. "Under my colleagues' proposal, companies that have not been harmed at all by the coronavirus will have the ability to receive taxpayer-funded loans," Scott said. However, it was rejected by Cardin who said he did not want to change the bill mid-program, despite acknowledging Scott’s concern.
President Donald Trump had signed the Paycheck Protection Program Flexibility Act of 2020 in the Rose Garden, taking a victory lap after the government reported surprising job gains for last month, seizing on the data to predict that the worst of the coronavirus pandemic and its economic disruption was in the rear-view mirror.
Image credits: AP
Updated 10:35 IST, July 1st 2020