Congress nears new small business rescue with big hurdle: Lender ‘fatigue’

Senate Small Business Chair Marco Rubio (R-Fla.) and a bipartisan group of lawmakers are nearing agreement on a new wave of small business rescue loans but are running into a major obstacle — reluctant banks.

According to people familiar with the discussions and draft proposals seen by POLITICO, the senators are contemplating not only a restart of the Paycheck Protection Program — which stopped taking loan applications this week with $130 billion left untapped — but also new types of government-backed loans that could also be turned into grants if employers maintain payroll.