We continue our efforts to keep you informed of key legal developments relating to COVID-19. Today, our update focuses on the over $470 billion in additional economic relief passed by the Senate for small businesses, hospitals and COVID-19-related testing. The House is expected to vote on the bill as early as Thursday, and the President is expected to sign it soon thereafter.
$310 Billion More for Paycheck Protection Program. The legislation increases the authorized funding for several programs established under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). Most notably, the legislation increases the amount of money authorized for the Small Business Administration (“SBA”)’s Paycheck Protection Program (“PPP”) by $310 billion, increasing the total amount available under the PPP to $659 billion.
Specific funds are authorized for non-traditional lenders and community development banks. Of the $310 billion:
$60 Billion for the Economic Disaster Funds. The legislation also appropriates an additional:
We understand that the amount sought under loan applications will far exceed even this expanded loan authority of $310 billion. Therefore, loan applications should be turned in very quickly and be diligently pursued.
We also are speaking with financial institutions interested in issuing PPP loans to minority-owned and women-owned businesses, including those with whom they do not currently have an existing banking relationship. Please reach out to us for more information.
The legislation also appropriates $100 billion to the Department of Health and Human Services (“HHS”) for allocating funds to hospitals and testing. Details include:
The funding also includes $6 million for HHS’ Office of Inspector General for oversight activities. States, localities, territories, and tribes are required to provide plans on how resources will be used for testing and easing COVID-19 community mitigation policies.
We will continue to send periodic updates on topics that may be helpful to your businesses. If you have a particular issue that you’d like us to address or if you’d like to be removed from the distribution list, please let us know. For our previous updates, please see HERE.
Feel free to contact us with any questions.
Gery Chico, Jon Leach, and Alpita Shah