Information on Additional Funding for Paycheck Protection Program and EIDL

Congress Approves Additional Funding for Paycheck Protection Program & EIDL

Both the U.S. Senate and House have now passed, and the President is expected to sign, The Paycheck Protection Program and Health Care Enhancement Act, which provides additional funding to the SBA Paycheck Protection Program for businesses in response to the COVID-19 disaster, among other provisions.

The final bill, summarized below, provides additional funding for small business loans, health care providers, and COVID-19 testing.

Paycheck Protection Program (PPP)

The bill:

  • Increases the appropriation level for the Paycheck Protection Program from $349 billion to $670.335 billion; this section adds $310 billion for loans and an additional $11.335 billion for administrative fees;
  • Creates a set-aside for Insured Depository Institutions, Credit Unions, and Community Financial Institutions for the Paycheck Protection Program;
  • Defines Community Financial Institutions as Community Development Financial Institutions (CDFIs), minority depository institutions (MDIs), certified development companies, microloan intermediaries, and State or Federal Credit Unions

This bill sets aside the following amounts for the Paycheck Protection Program to be made by the following institutions:

  • $30 billion for banks and credit unions, including minority depository institutions (MDIs), with more than $10 billion in assets but less than $50 billion in assets that are PPP lenders; and
  • $30 billion for banks and credit unions with less than $10 billion in assets, as well as all Community Development Financial Institutions (CDFIs), MDIs, certified development companies (CDCs), and microlenders that are PPP lenders.

This set-aside does not prohibit these community lenders to access additional PPP funds available to all lenders. Once the SBA is able to begin accepting new PPP applications, the application portal will be available online HERE.

Economic Injury Disaster Program (EIDP)

The Paycheck Protection Program and Health Care Enhancement Act expands the Economic Injury Disaster Loan program to increase assistance to small businesses by:

  • Increasing the authorization level for the Emergency Economic Injury Disaster (EIDL) Grants from $10 billion to $20 billion;
  • Allowing agricultural enterprises as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)) with not more than 500 employees to receive EIDL grants and loans;
  • Appropriating an additional $50 billion for the Disaster Loans Program Account to remain available until expended; and Appropriating an additional $10 billion for Emergency EIDL Grants to remain available until expended.

Once the SBA is able to begin accepting new EIDL applications, the application portal will be available online HERE.

Health Care Providers

This bill provides $100 billion in FY2020 supplemental appropriations to the Department of Health and Human Services for the Public Health and Social Services Emergency Fund, including:

  • $75 billion to reimburse health care providers for health care related expenses or lost revenues that are attributable to the coronavirus outbreak; and
  • $25 billion for expenses to research, develop, validate, manufacture, purchase, administer, and expand capacity for COVID-19 tests to effectively monitor and suppress COVID-19.