President Signs Law Adding Additional Funds For The Paycheck Protection Program

Today, President Trump signed the $484 billion interim coronavirus funding bill that includes $310 billion in additional funds for the Paycheck Protection Program (PPP). The additional funds were needed for the popular program once it became clear that the initial $349 billion in the CARES Act would run out.

The new law also addresses concerns raised in the wake of some large businesses and universities receiving loans through the program. New provisions require that borrowers certify in good faith that their PPP loan request is necessary, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business.

This week the Treasury Department also released an 11-page FAQ document on the Paycheck Protection Program.

Read FAQ's Here

HIGHLIGHTS FROM THE PAYCHECK PROTECTION PROGRAM AND HEALTH CARE ENHANCEMENT ACT:

• $310 billion of additional funds for the Paycheck Protection Program
  • $60 billion set aside for small institutions
    • $30 billion for loans made by Insured Depository Institutions and Credit Unions that have assets between $10 billion and $50 billion
    • $30 billion for loans made by Community Financial Institutions, Small Insured Depository Institutions, and Credit Unions with assets less than $10 billion
• $50 billion for the Economic Injury Disaster Loans
• $10 billion for Economic Injury Disaster Grants
• $75 billion for reimbursements to hospitals and healthcare providers to support the need for COVID-19 related expenses and lost revenue
• $25 billion for expenses to research, develop, validate, manufacture, purchase, administer, and expand capacity for COVID-19 tests.
• $2.1 billion for Small Business Administration administrative expenses

Members looking for information on the Paycheck Protection Program and how to apply can click here.

Full Text Of The Bill Available Here

Analysis Of Paycheck Protection Program Increase Section Available Here

Summary Of Hospital And Testing Section Available Here