By Andrew Kragie

Law360 (April 9, 2020, 12:54 PM EDT ) Senate Democrats on Thursday blocked a Republican attempt to approve another $250 billion in forgivable loans to small businesses, seeking changes to the pandemic relief funding and demanding greater consultation across party lines with unemployment claims reaching 17 million over the past four weeks.

A skeleton crew of four senators and a handful of staffers gathered for the pro forma session with a plentiful supply of hand sanitizer as Majority Leader Mitch McConnell, R-Ky., sought unanimous consent to supplement the $350 billion already approved for the Paycheck Protection Program, an element of the massive CARES Act that covers forgivable loans for companies with fewer than 500 employees who continue paying workers during the pandemic.

Democrats had demanded changes to ensure access for small businesses that don't have established banking relationships and decried McConnell's effort as a stunt.

"I want to add more money to the only part of our bipartisan bill that is at risk of running out of money," McConnell said on the Senate floor. "I'm literally talking about deleting the number 350 and making the number 600. … We're not making any policy changes."

Maryland's two Democratic senators made the short commute to block McConnell's move, which could only move forward without a full Senate vote if there was no objection from a senator present in the chamber.

Sen. Chris Van Hollen offered an amendment reflecting Democratic demands that a portion of the new funding flow through community development financial institutions that could serve business owners without established banking relationships. He cited a message from a small-business owner who normally banked with Wells Fargo, which has run into trouble offering the loans because of the asset size cap imposed after the bank's fake account scandal. The Federal Reserve Board announced Wednesday that it would relax that cap.

Democrats also sought another $100 billion for health care, $150 billion for state and local governments, and a 15% increase in the maximum food stamps benefit. McConnell objected to Van Hollen's amendment, and the Democrat objected to the majority leader's proposal. Republicans lambasted the move; Sen. John Cornyn of Texas immediately released a statement saying that "holding this relief hostage for extraneous funding that isn't needed is unfathomable."

Republicans have said the priorities Democrats identified can wait for the next comprehensive relief package, while the Paycheck Protection Program is in danger of running out of money.

Sen. Marco Rubio, R-Fla., who chairs the Small Business Committee, tweeted Thursday that over 400,000 companies had been approved for more than $100 billion in loans, forecasting that the program "will run out of funds in less than a week."

On the Senate floor, Sen. Ben Cardin of Maryland — the top Democrat on the committee — said the program urgently needed changes, including relaxed Know Your Customer requirements for banks, adding that other CARES Act programs have already run out of money, such as the $10,000 emergency grants from the Small Business Administration. He said those grants don't require an existing bank relationship but don't have enough funding to meet demand.

"The SBA doesn't need money today to process the Paycheck Protection Program," Cardin said. And in the future, he added, "We will put as much money as needed to make sure that every small business can participate that's eligible."

"But this unanimous consent request was not negotiated. There was no effort made to follow the process," he said. "What the [request] leaves out is where small businesses need help today. ... The urgent issues are not dealt with."

After the 30-minute session, McConnell told reporters that Republicans didn't necessarily oppose the Democratic proposals but saw the Paycheck Protection Program as the most urgent need, one that could move quickly through Congress and get President Donald Trump's signature.

Cardin told reporters that Democrats are in discussions with Treasury Secretary Steven Mnuchin, the administration's chief negotiator on economic relief measures. The senator added that Minority Leader Chuck Schumer, D-N.Y., is optimistic about a deal and open to changes.

In a news teleconference later Thursday, House Speaker Nancy Pelosi, D-Calif., also called McConnell's move a stunt.

"Eventually, will they need more money for the Paycheck Protection Program? OK, let's see the data. But they haven't even spent a third" of the amount already approved, she said. "The bill that the majority leader brought to the floor would never pass the House by unanimous consent."

Pelosi said Democrats sought to reserve a tenth of the proposed $600 billion total for community development financial institutions that could serve the smallest businesses and minority owners who are less likely to have established banking relationships.

"There is a disparity in access to capital in this country. We do not want our response to the coronavirus to solidify it," she said.

Thursday's developments leave an uncertain path forward for smaller bills as well as the next comprehensive relief package.

House Democrats initially backed a broad stimulus plan with billions or even trillions for infrastructure, an approach Trump has endorsed, but last week Pelosi backed away from that plan and predicted a CARES Act 2.0. The president and congressional Democrats have long shared the goal of an infrastructure boost, but GOP lawmakers have proven skeptical.

Both chambers are scheduled to hold pro forma sessions twice a week through April 20, which allow for approving bills if no one objects or demands a recorded vote.

Sen. Roy Blunt of Missouri, a member of the Republican leadership team who presided over the session, told reporters that he doubted an April 20 return date.

"My personal view is it's unlikely. There's all these cities under a closure order till April 30 or so," he said. "But it could turn out that we are required to be here on April 20 to deal with some of these issues."

Blunt added that, with leaders including McConnell and Pelosi opposed, any shift to remote voting appears unlikely.

The Missourian also said administration officials have discussed a blood test that could reveal virus immunity based on past infection or exposure. He said the serological test, which he expects to be free for all patients, will have "substantial numbers ... available beginning in May and moving forward in dramatically larger numbers after that."

--Editing by Orlando Lorenzo.

Update: This article has been updated with comment from Nancy Pelosi.

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