A short while ago, President Trump signed the Paycheck Protection Program and Health Care Enhancement Act into law. The legislation allocates $484 billion in additional economic stimulus funding, the majority of which will be allocated to the Paycheck Protection Program (PPP) established under Title I of the CARES Act.
The initial round of funding for the PPP was quickly exhausted. Following significant discussion and political maneuvering, Congress passed this latest round of stimulus financing. Critical for small businesses is the $310 billion in additional funding for the PPP, which provides small business loans that can be forgiven if used for wages, benefits, rent and utilities. $60 billion of the new funding has been set aside for small lenders.
In addition to the PPP funding, the newly signed bill authorizes funding for Small Business Administration (SBA) disaster assistance loans and grants, including the Economic Injury Disaster Loan (EIDL) program. The legislation also authorizes funding for hospitals, healthcare providers and expanded COVID-19 testing.
