President Donald Trump on Friday signed into law legislation designed to make it easier for millions of small businesses to avoid being stuck with debt after taking government-backed loans during the pandemic, Politico reported. The bill would give businesses more leeway on how they spend funds through the so-called Paycheck Protection Program, which Congress created in March to fight mass layoffs during the Covid-19 outbreak. The program offers low-interest loans that can be forgiven if businesses agree to maintain their payrolls — an incentive that led to the issuance of 4.5 million loans totaling more than $510 billion. Restaurants and other businesses hit hard by nationwide social distancing measures warned that the rules for using the funds were proving to be too burdensome as much of the economy remains locked down for longer than lawmakers anticipated. The new law, which the House and Senate passed with overwhelming support, would give businesses more time to spend the money — 24 weeks instead of eight — and the ability to use more of it on non-payroll expenses while still qualifying for loan forgiveness.
