On April 24th, 2020, President Trump signed into law H.R. 266, known as the Paycheck Protection Program and Health Care Enhancement Act (PPPHCE Act) that will re-open the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program by allocating additional funds to both. The Act makes $484 billion of additional funding available split as follows:
The PPP will get an additional $310 billion in government funds for new loans, taking it from $349 billion to $659 billion in total.
Of that new $310 billion, $250 billion is unrestricted. Of the remaining $60 billion, half will be allocated to lenders with assets of less than $10 billion, and half to those with assets between $10 billion and $50 billion.
Agricultural enterprises (as defined in section 18(b) of the Small Business Act U.S.C. 647(b)) with not more than 500 employees are now eligible for the PPP.
The EIDL program will get an additional $60 billion in funding through the SBA. It will be allocated as follows:
The SBA itself gets $2.1 billion for salaries and expenses.
On the same day, the SBA also announced that it will resume accepting PPP loan applications on Monday, April 27 at 10:30 AM EDT from approved lenders on behalf of any eligible borrower. This will ensure that the SBA has properly coded the system to account for changes made by the legislation.
The SBA also stated that PPP loans have already been approved for more than 1.66 million small businesses covering over 30 million American workers.
Funding for Hospitals and COVID-19 Testing
The Act also includes $75 billion of funding for hospitals and eligible healthcare providers and $25 billion to research, develop, manufacture, and expand capacity for COVID–19 tests to effectively monitor and suppress the Coronavirus outbreak.
Do you need assistance determining which business provisions apply to your situation? We can help. Contact KROST today for consulting on the CARES Act. Visit our COVID-19 Resource page for more tools to help you during this difficult time.