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New loans for small business, and new scrutiny

Congress moved closer to shoring up the federal small-business rescue fund. But expect a closer eye on who gets money, after public outrage that big companies tapped the first round.

The Senate approved a $484 billion coronavirus rescue package, with $320 billion for the Paycheck Protection Program that ran dry last week. It also includes $60 billion for other small business rescue programs and $75 billion for hospitals. The House is expected to pass it tomorrow, and President Trump to sign it soon after.

There will be a closer eye on where this round of money goes, after data showed that over 80 public companies borrowed from a fund for needy small firms:

• Mr. Trump said yesterday that he would ask bigger companies to return money. Treasury Secretary Steven Mnuchin warned of “severe consequences” for inappropriate borrowers.

• Some venture capitalists are urging their portfolio companies to think twice about applying, citing ethical and P.R. concerns.