On April 21, the Senate passed the Paycheck Protection Program and Health Care Enhancement Act, H.R. 266, a $484 billion legislative package to further address the COVID-19 pandemic and related economic effects. The bill provides $310 billion in additional funding for the Paycheck Protection Program, which was established by the federal CARES Act approved in March to provide forgivable loans to enable small businesses to maintain payrolls and cover basic expenses during the crisis.
The Paycheck Protection Program, which is operated by the Small Business Administration, ran out of funds during the week of April 13 despite many small businesses not receiving or successfully applying for loans under the program. Of the $310 billion in new funding for the program, $60 billion is set aside for banking institutions with assets under $50 billion. The bill also provides $50 billion for the SBA’s Economic Injury Disaster Loan program; $10 billion for emergency EIDL grants; $75 billion for hospitals; and $25 billion for testing for COVID-19.
The legislation is expected to be considered in the House of Representatives April 23. For more information about the Paycheck Protection Program, visit the COVID-19 section of NRCA’s website and look under the “Federal Financial Assistance for Contractors” section. You also can visit SBA’s website.
