Insights

Home / Insights / Congress Passes Paycheck Protection Program and Health Care Enhancement Act

COVID-19 Talk to an advisor: (816) 743-7700

Congress Passes Paycheck Protection Program and Health Care Enhancement Act

April 22, 2020

The Coronavirus Aid, Relief, and Economic Security (CARES) Act which became law on March 27 contained several new or expanded loans administered by the Small Business Administration (SBA).  Two of which, the Economic Injury Disaster (EID) loan and the Paycheck Protection Program (PPP) loan, had specific amounts appropriated to each program. Once those amounts were reached, lending was halted unless additional funding was appropriated by Congress.  The PPP program reached its limit on April 16 and the SBA stopped accepting loan applications as a result.

Congress has passed the Paycheck Protection Program and Health Care Enhancement Act to provide additional funding for the SBA loans and for health care providers.  The bill was signed into law by President Trump on April 24.



Small Business Loans

The bill provides the following additional funding for SBA loans:

  • $310 billion for PPP loans
  • $10 billion for EID loans
  • $10 billion for the Emergency EID loan Grants
  • $50 billion for loans under Section 7(b) of the Small Business Act 

The bill also adds agricultural enterprises (as defined in Section 18(b) of the Small Business Act) with not more than 500 employees as those that are eligible for both EID loans and Emergency EID loan Grants.

Additionally

In addition to providing cashflow relief to small businesses, the bill also provides:

  • $75 billion appropriated as grants for hospitals and other health care providers to reimburse for lost revenue and COVID-19 related expenses
  • $25 billion dedicated to research, develop, validate, manufacture, purchase, administer and expand capacity for COVID-19 tests
We continue to monitor the resources available to businesses and will provide our insights and guidance once this, or any other relief is enacted and we have access to the finalized details. We understand the trust and value our clients place in us and strive to serve as a strong partner every step of the way. Please reach out to your MarksNelson advisor if you want to discuss your unique situation. We are in this together.
About THE AUTHOR
At MarksNelson, we pride ourselves on our commitment to innovation and technology. This fuels our professionals' drive to work with you, not for you - bringing comprehensive and innovative solutions to the conversation and helping remove uncertainty from the outcome. >>> READ MORE
Questions for MarksNelson?
Want More Information Like This?