WASHINGTON (AP) — Republican and Democratic leaders edged back Wednesday from a perilous standoff over lifting the nation's borrowing cap, with Democratic senators signaling they were receptive to an offer from Senate GOP leader Mitch McConnell that would allow an emergency extension into December.

McConnell made the offer shortly before Republicans were prepared to block legislation to suspend the debt limit until December of next year and as President Joe Biden and business leaders ramped up their concerns that an unprecedented federal default would disrupt government payments to millions of...