Paycheck Protection Program and Health Care Enhancement Act
Congress recently passed a new $484 billion coronavirus relief package called the Paycheck Protection Program and Health Care Enhancement Act. President Trump signed the bill into law on Friday, April 24, 2020. The new law largely replenishes the depleted Paycheck Protection Program (“PPP”), a forgivable loan program created by the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. Here is a rundown of the new legislation:
$321 Billion for the Paycheck Protection Program
A substantial portion of the relief package will be used for the newly created PPP. This popular program gives loans of up to $10 million to small businesses, portions or all of which may be forgiven if used for qualified purposes, like payroll costs and rent. Approximately $60 billion of the new PPP funding will be set aside for businesses that do not have existing banking relationships, which is aimed to assist rural and minority-owned businesses. If you have already submitted an application for PPP money but did not get approved before the program ran out of money, you should contact your bank or lender to determine your next steps. For more information about the PPP and the CARES Act, click here.
$75 Billion for Hospital Grants
The new law also allocates $75 billion for the Public Health and Social Services Emergency Fund. The purpose of the fund is to prevent, prepare for, and respond to the coronavirus pandemic, both domestically and internationally. Grant funds are available to eligible hospitals and health care providers and can be used to cover expenses or lost revenues that are attributable to the coronavirus pandemic.
$60 Billion for SBA Disaster Assistance Loans and Grants
The Small Business Administration will receive an additional $60 billion for its Economic Injury Disaster Loan (“EIDL”) program. EIDL funds can provide vital economic support to your small business to help overcome the temporary loss of revenue caused by the coronavirus pandemic. To learn more about the EIDL program, click here.
$25 Billion for Coronavirus Testing
Finally, Congress allocated an additional $25 billion for enhanced coronavirus testing. Ensuring sufficient testing capacity will be essential as more states look to reopen their economics in the coming weeks.
This new coronavirus relief package is unlikely to be the last. Indeed, there has been some discussion of a new relief package for state and local governments. The attorneys at Roedel Parsons will continue to monitor and analyze the evolving realm of state and federal COVID-19 legislation.