Thursday, April 23, 2020
Brewster’s Trillions: Earlier this evening and after much negotiation, Congress passed the Paycheck Protection Program and Health Care Enhancement Act, which the President is expected to sign later tonight.
This bill is much simpler than previous COVID -19 legislation. It provides additional funding for the quickly depleted Paycheck Protection Program (PPP) and the Emergency Economic Injury Disaster Loan (EIDL) programs, as well as funding for hospitals to help defray their COVID-19 expenses and for research and development of COVID-19 testing capabilities. For those that have received their PPP loans, AGP principal Tom Hager discusses what to do next in his latest article for Forbes.
Funds for Small Business Programs
Generally, the law makes no change to the terms of PPP and EIDL. Instead, it increases the funding of PPP by an additional $310 billion and provides an additional $50 billion for EIDL grants and loans. These programs are now available to agricultural enterprises, and $60 billion of the PPP is reserved for loans made by community financial institutions, credit unions, minority deposit institutions, and microloan intermediaries.
Emergency Appropriations for COVID-19 Response
This portion of the bill appropriates an additional $75 billion to eligible health care providers to help defray expenses and lost revenues due to COVID-19. Again, there are no changes to the conditions to receive the funds.
Additionally, $25 billion is appropriated to various entities to pay expenses to research, develop, manufacture, and expand COVID-19 testing capabilities. $11 billion of these funds is reserved for states and localities to develop, purchase, and administer tests and testing-related activities such as contact tracing.
The bill appropriates $6 million to Health and Human Services Office of Inspector General for oversight activities.
AGP COVID-19 Response Team Recommendation– The PPP and EIDL funding will be very quickly depleted. If you have not applied for these programs, contact your engagement team today as your application needs to be submitted immediately due to the number of applications currently in the queue and not funded during the initial appropriation.
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