On April 21,
2020, Congress passed the Paycheck Protection Program and Health Care
Enhancement Act, its fourth major coronavirus relief package. The bill amends
the CARES Act to replenish the Paycheck Protection Program (PPP) — which ran
out of money in just 13 days — increase funds available for the SBA economic injury
disaster program, and expand access to both programs. It also provides additional
relief for hospitals and coronavirus testing across the country.
Here are
the details of the bill’s major provisions:
Paycheck
Protection Program (PPP)
- $310
billion in new funding for the PPP in accordance to Section 7(a) of the SBA;
- $60
billion is reserved for small banks, community financial institutions, and
credit unions. This set-aside will help ensure small businesses and underserved
communities still have access to the PPP loans
Economic
Injury Disaster Grants/Loans (EIDL)
- $10
billion in additional funding for coronavirus-related economic injury disaster loans
(EIDL);
- $50
billion in additional funding for direct loans under the economic injury
disaster loans program (DLP);
- Agricultural
enterprises with fewer than 500 employees are now also eligible for economic
injury disaster loans and grants
Health
Care Support and Coronavirus Testing
- $75
billion in new funding for health care providers for expenses and losses
related to Covid-19;
- $25
billion for research, development, manufacturing, and surveillance of Covid-19
tests
Interested businesses
should contact their lenders as soon as possible to submit an application.