UPDATE: President Trump signed this bill into law on April 24, 2020.
Earlier today, the U.S. Senate passed a bill appropriating additional funding to the Paycheck Protection Program, which ran out of funds in the middle of last week. The House is expected to pass the measure on Thursday, after which President Trump is expected to sign it into law.
The Senate bill appropriates an additional $310 billion to the SBA to issue further PPP loans, with $60 billion of that amount earmarked for distribution by smaller (consolidated assets of less than $50 billion) depository institutions, credit unions, and community financial institutions. The Senate bill also appropriates an additional $60 billion to the Economic Injury Disaster Loan program – of which $10 billion will be used to fund EIDL grants up to $10,000 that were authorized by the CARES Act – and makes small agricultural enterprises with up to 500 employees specifically eligible for EIDL grants.
The bill further appropriates $75 billion to reimburse, through grants and other mechanisms, eligible health care providers (including hospitals) for health care related expenses and lost revenues attributable to COVID-19. A further $25 billion is appropriated to expand and develop COVID-19 testing.
For businesses that were unable to apply in time for loans from the initial $349 billion allocated to the Paycheck Protection Program, this additional funding will present another opportunity to submit a loan application. Similarly, businesses that submitted loan applications which could not be approved by the SBA because of the exhaustion of initial appropriations to the program can expect to see those applications processed.
Schiff Hardin’s Corporate and Transactional team has assisted multiple clients with successfully applying for PPP loans and advising them on the application process throughout. A business with questions about the Paycheck Protection Program, including its eligibility for a loan, should feel free to reach out to any of the attorneys listed.