Paycheck Protection Program and Health Care Enhancement Act Passes
On Thursday, April 23, 2020, the U.S. House of Representatives passed H.R.266 – Paycheck Protection Program and Health Care Enhancement Act and it has been signed by the President. The bill is designed to provide additional funding for small business loans, health care providers, and COVID-19 testing, as authorized by the CARES Act (Public Law 116-136) and by section 7(b) of the Small Business Act. The bill provides additional funding for SBA Economic Injury Disaster Loan (EIDL) loans and emergency EIDL grants. Small businesses that applied for the first PPP loan but did not receive approval or an E-Tran number before the funding ran out can contact their banker to resume processing of the application.
Distressed businesses in need of COVID-19 emergency funding can prepare now for the application process by contacting their bank and financial advisors, having a complete loan application prepared, along with the payroll and financial information required. Expectations are that the urgently needed PPP loan money will be quickly depleted. Information can be found through the SBA website here: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options.
The Paycheck Protection Program and Health Care Enhancement Act requires:
- The SBA to guarantee a specified amount of paycheck protection loans
Supplemental appropriations to the SBA, include:
- $2.1 billion for salaries and expenses to administer programs related to COVID-19
- $50 billion for the Economic Injury Disaster Loan (EIDL) program
- $10 billion for Emergency EIDL grants
$75 billion is included to reimburse health care providers for health care related expenses or lost revenues that are attributable to the coronavirus outbreak.
$25 billion is set aside for expenses to research, develop, validate, manufacture, purchase, administer, and expand capacity for COVID-19 tests to effectively monitor and suppress COVID-19. The title allocates specified portions of the $25 billion for COVID-19 testing to:
- States, localities, territories, and tribes
- The Centers for Diseases Control and Prevention
- The National Institutes of Health
- The Biomedical Advanced Research and Development Authority
- The Food and Drug Administration
- Community health centers
- Rural health clinics
- Testing for the uninsured
View the key provisions of the Paycheck Protection Program and Health Care Enhancement Act here.
Barnes Dennig COVID-19 Advisory Team
Given the size and complexity and scale of the government’s response to the pandemic and the fact that the legislation was passed quickly, more guidance is needed and being published almost daily. The information on this page is subject to change.