Paycheck Protection Program and Health Care Enhancement Act – COVID-19 – April 24-2020


lcmm@melchionnalaw.com
Paycheck Protection Program and Health Care...

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.