President Enacts $484 Billion Virus Aid Bill

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On Friday, April 24, President Trump signed the Paycheck Protection Program and Health Care Enhancement Act into law. The new aid bill boosting funding for various initiatives in response to the coronavirus pandemic was passed in the Senate on Tuesday and by the House on Thursday. The legislation includes the following:

  • $310 billion in additional funding for the Paycheck Protection Program (PPP). The original $349 billion that funded the program was depleted last week. $60 billion of the funds is allocated for community lenders that focus on rural areas, under-banked neighborhoods, and minority groups. Of that $60 billion:
    • $30 billion is allocated for FDIC-insured banks and credit unions that hold between $10 billion and $50 billion in assets.
    • $30 billion is allocated for lenders that provide loans to low-income communities and those who lack access to financing (community banks, credit unions, and community development financial institutions that hold less than $10 billion in assets).
  • $60 billion in directed funding for the Small Business Administration’s (SBA) Economic Injury Disaster Loan program.
    • $10 billion allocated specifically to the SBA’s fund for small business disaster relief grants.
  • $75 billion in aid for hospitals, in the form of reimbursements for coronavirus-related expenses and lost revenue.
  • $25 billion for funding to boost testing for the coronavirus ($11 billion of the money is allocated specifically for states and localities).

The next round of funding should be available beginning Monday morning April 27th. If you did not receive a PPP loan during the first round be sure to contact your bank as soon as possible.

 


The information and tips noted above are intended as general guidelines only. The provisions within the CARES Act are complicated with many questions still unanswered. Every client situation is unique and ideas expressed in this article should not be considered a substitute for professional advice. Opinions expressed in this article are subject to change as interpretations are clarified and additional guidance is issued. Please call our office if you have questions regarding the CARES Act or any other recent legislation.