A deserted downtown in Rockton, Illinois. Photo: Scott Olson/Getty Images

The $349 billion cap for small business loans for the coronavirus stimulus was reached Thursday, taking less than two weeks to run out.

Why it matters: While it's a sign that more than 1.6 million small businesses (and some larger ones) will eventually get desperately needed cash, it's now officially a sign that more is needed.

  • Paycheck Protection Program (PPP) loans are forgivable if used for payroll and rent and similar expenses, and they're designed to keep otherwise healthy businesses afloat during this crisis.

The big picture: In roughly a month, coronavirus lockdowns have...

  1. Caused more than 1 in 10 working-age Americans to file for unemployment.
  2. Put historic pressure on businesses not initially affected by the lockdown, with a second wave of layoffs hitting nationwide. (WSJ)

The state of play, via Axios' Alayna Treene: Democrats and Republicans are still in a stalemate over how big an interim stimulus package should be — with both sides digging in deeper to their respective positions last night.

  • Republicans continue to argue that the most urgent need is to add money to the PPP, and that they can negotiate other funding measures once that’s passed.
  • Meanwhile, Democrats are insisting that the bill should include money for hospitals and state and local governments, citing mayors and governors who have pleaded for more federal aid.

What's next: House and Senate aides familiar with the talks say now that the fund is depleted, the pressure to come to a compromise is greater than ever to deliver emergency funding, and are confident they will reach an agreement soon. 

  • Some Trump administration officials say they’d be open to accepting more money for hospitals in order to get the $251 billion in small-business funding they've requested.
  • Treasury Secretary Steven Mnuchin and members of his staff are scheduled to resume talks with Senate Democratic and House majority leadership today to try and hammer out an agreement.

Go deeper

Trump tries to set a tax trap for Biden

Photo: Jim Watson/AFP via Getty Images

President Trump is trying to lure Joe Biden into a Walter Mondale trap — attempting to force the Democratic nominee to embrace middle-class tax increases as part of his election strategy.

Why it matters: With his Saturday evening executive action to unilaterally rewrite the tax code, Trump again is demonstrating the lengths to which he’ll go to change the conversation — and try to make the election a choice between him and Biden, and not a referendum on him.

Tech's reluctant road to taking on Trump

Illustration: Eniola Odetunde/Axios

The coronavirus pandemic, Black Lives Matter protests and a looming election have brought long-simmering conflicts between tech platforms and President Trump to a boil, as Facebook, Twitter and other services are starting to take presidential misinformation seriously.

What's happening: Wary of becoming arbiters of political speech, tech's platforms have carved out a range of exceptions and immunities for Trump and other political leaders — but that accommodation is coming undone.

1 hour ago - Sports

The cost of kids losing gym class

Illustration: Aïda Amer/Axios

With a growing number of schools opting for online-only classes this fall to limit the spread of COVID-19, physical education will be severely limited, if not suspended altogether.

Why it matters: While classroom-based learning can be done virtually, it's nearly impossible to replicate physical education — which plays a crucial role in kids' physical and mental health — through a screen. And with sports on hold in most states, PE is the only physical activity outlet some kids have.