On April 24, 2020, the President signed the Paycheck Protection Program and Health Care Enhancement Act (the Act) into law. The goal of the Act is to help provide additional funding for the Paycheck Protection Program and to provide additional emergency appropriations for Coronavirus response. In total, the Act will provide $484 billion in funding.
The Highlights of the Paycheck Protection Program and Health Care Enhancement Act
Below are the key points relating to the Act, which was recently signed into law:
- Under the Act, the Paycheck Protection Program will receive an additional $310 billion of funding. Of that funding:
- At least $30 billion in funding will be reserved for credit unions.
- At least $30 billion in funding will be reserved for small banks.
- An additional $10 billion in funding has been provided for the Emergency Economic Injury Disaster Loans Grant program announced under the CARES Act, which provided a $10,000 grant for those applying for Emergency Economic Injury Disaster Loans.
- An additional $50 billion is being provided to fund the Emergency Economic Injury Disaster Loans program.
- The eligibility for Emergency Economic Injury Disaster Loans has been expanded to include farms and agricultural businesses.
- $100 billion in supplemental appropriations is being provided to the Department of Health and Human Services for the Public Health and Social Services Emergency Fund, including:
- $75 billion to reimburse healthcare providers for healthcare related expenses or lost revenues that are due to the COVID-19 pandemic.
- $25 billion for expenses towards developing and expanding the capacity for COVID-19 testing and monitor the spread of COVID-19.
Disclaimer: This communication is intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.