April 27, 2020
Congress passed the Paycheck Protection Program and Health Care Enhancement Act (PPP & HCE Act) last week, and on Friday President Trump signed the fourth COVID-related legislative act into law. As a result of this additional funding, the Small Business Association (SBA) will resume accepting Paycheck Protection Program applications from participating lenders today, April 27.
Below is an overview of the newly passed PPP & HCE Act’s $484 billion package funding.
Paycheck Protection Program (PPP):
• Additional $321 billion to go into the Paycheck Protection Program (PPP), which was created through the CARES Act and quickly ran out of its $349 billion of initial funding.
• $60 billion of this is earmarked for lending by certain smaller depository institutions, including credit unions, community financial institutions, and those that are minority-owned.
Economic Injury Disaster Loan Program (EIDL):
• $60 billion of additional funds to assist businesses economically affected by the pandemic through the SBA’s existing Economic Injury Disaster Loan Program. The CARES Act provided EIDLs with $10 billion in funding to assist small businesses affected by COVID-19, but these funds ran out quickly.
• Additional $75 billion for hospitals, health systems, and other health care providers. Funding includes reimbursement to eligible health care providers for COVID-related healthcare expenses or lost revenue.
• $25 billion for coronavirus testing and contact tracing, which includes:
- $11 billion for states
- $1 billion for Centers for Disease Control and Prevention
- $1.8 billion for National Institutes of Health
- $1 billion for Biomedical Advanced Research and Development Authority
- $1 billion for testing uninsured
- $22 million for Federal and Drug Administration (FDA)
- $825 million for rural, community and other related health centers.
The legislation mandates federal, state and local plans on increasing testing and testing capacity in order to use this funding. It also establishes a coronavirus oversight committee to investigate the federal government’s responses to COVID-19, including how federal funds are spent.
Do you and your business need help navigating these changing times? Contact JPS.
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Johnson Price Sprinkle PA is a 60+ year old accounting firm providing small to middle-market businesses with tax, business consulting, audit, and technology solution services. With offices in Asheville, Boone, and Marion, NC, our CPAs and JPS team strive to provide personal service alongside technical expertise resulting in our clients’ long-term financial success. We also invest time and energy in our community, taking pride in doing what we can to make Western North Carolina a better place. JPS Mission: To Be Greater by positively impacting our Clients, People, Community and Profession.