Updated Apr 16, 2020 - Economy & Business

Small business loan fund from coronavirus stimulus runs out

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

Senate passes bill to ease PPP loan restrictions

Illustration: Sarah Grillo/Axios

The Senate unanimously passed a bill on Wednesday to loosen some of the rules that small businesses must follow when applying for Paycheck Protection Program loans.

By the numbers: Businesses now have 24 weeks to use loans obtained through the program, instead of eight weeks. Only 60% of a PPP loan now has to be used for payroll, instead of 75% — a requirement that "tens of thousands of borrowers" weren't expected to meet, per a recent inspector general report.

Updated 29 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 9 p.m. ET: 6,724.516 — Total deaths: 394,018 — Total recoveries — 2,996,832Map.
  2. U.S.: Total confirmed cases as of 9 p.m. ET: 1,894,753 — Total deaths: 109,042 — Total recoveries: 491,706 — Total tested: 19,231,444Map.
  3. Public health: WHCA president says White House violated social-distancing guidelines to make reporters "a prop" — Jailing practices contribute to spread.
  4. Sports: How coronavirus could reshuffle the sports calendar.
  5. Jobs: Better-than-expected jobs report boosts stock market.
  6. Media: The Athletic lays off 8% of staff, implements company-wide pay cut.

Scoop: German foreign minister to travel to Israel with warning on annexation

Heiko Maas. Photo: Michael Kappeler/picture alliance via Getty Images

German Foreign Minister Heiko Maas is expected to travel to Israel next week to warn that there will be consequences if Israeli leaders move forward with plans to annex parts of the West Bank, Israeli officials and European diplomats tell me.

Why it matters: Israeli and European officials agree that if Israel goes ahead with unilateral annexation, the EU will respond with sanctions.