IEDC Update on April 22, 2020 from the Capitol
Washington, DC – The Senate has passed a $484 billion bill to inject additional funding into SBA disaster loan programs — both the Paycheck Protection Program (PPP) and the Emergency Injury Disaster Loan (EIDL) — that will now head to the House where it is expected to pass later this week. The bill comes after weeks of negotiations between Congress and the White House and after the initial funding for the programs was largely exhausted last week. The bill also contains critical funding for testing and hospitals.
- Paycheck Protection Program
- Additional $310 billion in funding (on top of $349 billion in CARES Act)
- $30 billion carve-out for Insured Depository Institutions and Credit Unions with assets between $10 billion and $50 billion in assets
- $30 billion carve-out for Community Financial Institutions, Small Insured Depository Institutions and Credit Unions with less than $10 billion in assets
- Additional $50 billion for SBA Disaster Loan Program
- Emergency Injury Disaster Loan Program
- Additional $10 billion in funding (on top of $10 billion in CARES Act)
- Expands eligibility to agricultural enterprises with less than 500 employees
- Public Health Funding
- $75 billion for hospitals and health care providers responding to the COVID-19 pandemic (on top of $100 billion in CARES Act)
- $25 billion for testing, including $11 billion for states, localities, territories, tribes and employers
If the CARES Act was the third of the ‘COVID-19’ bills (‘covid 3’), the bill today (the Paycheck Protection Program and Health Care Act) should be considered ‘covid-3.5’. Today’s bill was not, nor was it intended to be, of a similar scale and scope as CARES. That bill — ‘covid 4’ — is yet to come and currently being discussed in Congress.