The Paycheck Protection Program and Health Care Enhancement Act
Apr 30, 2020
The Paycheck Protection Program and Health Care Enhancement Act is now in effect. More than $250 billion in additional unrestricted funds for the Paycheck Protection Program (PPP) through the Small Business Administration (SBA) is now available.
The SBA resumed accepting PPP loan applications from approved lenders on behalf of borrowers. The SBA has advised approved lenders to resume processing loan applications that were previously submitted by eligible borrowers as well as new applications and to resume disbursing funds.
KEY POINTS OF THE LEGISLATION:
- This new Act is the second round of relief that provides $484 billion in additional funding to replenish and supplement key programs under the CARES Act, including the Paycheck Protection Program (PPP), small business disaster loans and grants, hospitals and health care providers and testing.
- Paycheck Protection Program receives $321 billion in total funding, with $60 billion set aside for small, midsize, and community lenders (including minority lenders). This includes $30 million for lenders with assets valued at less than $10 billion and $30 billion for lenders with assets between $10-50 billion is also available.
- An additional $250 billion for SBA Loans under the Paycheck Protection Program.
- An additional $50 billion for the Disaster Loans Program and an additional $10 billion for Emergency Economic Injury Disaster Loan (EIDL) Grants.
- Hospital and Provider Grants under the Public Health and Social Services Emergency Fund. It provides an additional $75 billion to support the need for COVID-19 related expenses and lost revenue due to coronavirus.
- Provides $25 billion for the HHS Public Health and Social Services Emergency Fund for necessary expenses to research, develop, validate, manufacture, purchase, administer, and expand capacity for COVID-19 tests. Requires the Administration to create a national strategy to provide assistance to states for testing and increasing testing capacity.