Yesterday, the U.S. House of Representatives passed a bill providing additional funding into existing programs to assist small business in response to the COVID-19 pandemic. The President is expected to sign the bill into law today.
The legislation authorizes $310 billion into the Paycheck Protection Program (PPP), the loan program designed to keep employees on small company payrolls. The initial $350 billion provided into PPP, created last month as part of the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, ran out of funds last week.
The main provisions of the Paycheck Protection Program and Health Care Enhancement Act are:
- $310 billion for PPP, with $60 billion is set aside for distribution by financial institutions that primarily work with underserved communities;
- $60 billion for the Economic Injury Disaster Loan program, of which $10 billion is available for grants;
- $75 billion in hospital relief; and
- $25 billion for coronavirus testing.
For information on PPP and other COVID-19 economic relief programs, please visit the Small Business Administration website.
While the Paycheck Protection Program and Health Care Enhancement Act primarily focused on additional funding for existing programs, discussions continue in Congress and the Administration on the next broad COVID-19 aid package that could include new stimulus measures, such as funding for state and local governments and infrastructure.