New Bill Allocates Additional Funding to PPP

Congress has passed a $484 billion COVID-19 relief bill that will replenish the funds available to small businesses through the Paycheck Protection Program (PPP). The bill is expected to be signed into law on Friday.

The bill appropriates $321 billion in new funds to the PPP under the same terms that were established when the bill passed and further clarified through subsequent releases by the Small Business Administration (SBA).

Beyond replenishing the funds available to small businesses through PPP, the bill includes several other notable additions:

• $60 billion, in total, designated to pass through small lenders administering PPP loans, including Insured Depository Institutions and Credit Unions with between $10 billion and $50 billion in assets (receiving $30 billion), as well as those with less than $10 billion in assets (also to receive $30 billion)
• $50 billion for the Disaster Loans Program
• $10 billion for Emergency Economic Injury Disaster (EIDL) grants (increasing the authorization level from $10 billion to $20 billion)
• Agricultural enterprises under section 18(b) of the Small Business Act (15 U.S. C. 647(b) with 500 or fewer employees will be eligible to receive EIDL grants and loans
• An additional $75 billion for hospitals and healthcare providers to cover expenses related to the coronavirus and associated lost revenues; and
• $25 billion for expanding COVID-19 testing