(From a Lowndes, Drosdick, Doster, Kantor & Reed Release of March 24, 2020) Today, President Trump signed into law the Paycheck Protection Program and Health Care Enhancement Act (the “Act”). The House and Senate passed the Act on April 21 and April 23, respectively. The Act allocates an additional $484 billion to replenish the Paycheck Protection Program (“PPP”) and to provide funds for hospitals and coronavirus testing.
Read on for allocation of the funding.
The $484 billion will be allocated as follows:
- $310 billion to increase PPP funding
- $60 billion to increase Economic Injury Disaster Loan (“EIDL”) funding ($10 billion of which is allocated specifically to Emergency EIDL grants)
- $75 billion directed to hospital funding
- $25 billion directed to new coronavirus testing programs
The aforementioned funding is in addition to the $2.3 trillion included in the CARES Act, which allocated nearly $350 billion to the PPP. Initial funding for the PPP, which began accepting applications on April 3, was entirely depleted along with EIDL funds by April 16.
President Trump tweeted that upon the signing the bill, the administration's focus will shift toward the “phase four” coronavirus bill, which is likely to include more help for local and state governments, as well as additional tax incentives for businesses and further payroll tax cuts.
In addition to the expansion of funding for the PPP, a new SBA FAQ was published on Thursday, April 23, in consultation with the Department of the Treasury.