Virus Relief Loan Extension Unlikely to Spur Big Lending

Congress’ last-minute extension of a pandemic relief loan program to August is unlikely to increase banks’ appetite to lend the remaining money.

Lawmakers extended the popular but embattled Paycheck Protection Program, which expired June 30, before leaving for a two-week July recess. But interest in the program had already waned after an explosion of interest in March when Congress first approved $349 billion in emergency lending (Public Law 116-136). The program, which offers loan forgiveness if funds are used for specific purposes, is meant to bolster businesses struggling in the pandemic-induced recession.

The extension to Aug. 8 ...