On Friday, April 24, President Trump signed the Paycheck Protection Program and Health Care Enhancement Act into law. The new aid bill boosting funding for various initiatives in response to the coronavirus pandemic was passed in the Senate on Tuesday and by the House on Thursday. The legislation includes the following:
- $310 billion in additional funding for the Paycheck Protection Program (PPP). The original $349 billion that funded the program was depleted last week. $60 billion of the funds is allocated for community lenders that focus on rural areas, under-banked neighborhoods, and minority groups. Of that $60 billion:
- $30 billions is allocated for FDIC-insured banks and credit unions that hold between $10 billion and $50 billion in assets.
- $30 billions is allocated for lenders that provide loans to low-income communities and those who lack access to financing (community banks, credit unions, and community development financial institutions that hold less than $10 billion in assets).
- $60 billion in directed funding for the Small Business Administration’s (SBA) Economic Injury Disaster Loan program.
- $10 billion allocated specifically to the SBA’s fund for small business disaster relief grants.
- $75 billion in aid for hospitals, in the form of reimbursements for coronavirus-related expenses and lost revenue.
- $25 billion for funding to boost testing for the coronavirus ($11 billion of the money is allocated specifically for states and localities).
It is not currently clear when the money for the overwhelmed PPP will become available. After the passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the $349 billion allocated for PPP funds was exhausted in just 12 days. It is expected that the replenished funds will run out quickly again.