This article was updated on April 22, 2020. Updates to this article will be made as new information becomes available.
Schneider Downs continues to track the evolving landscape of Federal financial programs offered due to the disruption of the coronavirus (COVID-19). On Tuesday, April 21, 2020, the U.S. Senate passed a deal on a $484 billion relief package for small businesses, hospitals and testing. Below is a summary of this new stimulus package:
The deal would allocate an additional approximately $321 billion to the Paycheck Protection Program (PPP). Of the $321 billion, $250 billion is unrestricted, $60 billion is set aside for community-based lenders, smaller banks and credit unions and approximately $11 billion is for administration fees. The PPP has already committed all of the original $349 billion allocated in the CARES Act.
An additional $60 billion will be allocated to the Economic Injury Disaster Loan program (EIDL), with $50 billion allocated to the EIDL program and $10 billion to Emergency EIDL grants.
$75 billion for hospitals to prevent, prepare for and respond to COVID-19.
$25 billion for COVID-19 testing, with $11 billion of this amount to be distributed to states.
$2.1 billion for Small Business Administration (SBA) administrative expenses
The new stimulus package is in the hands of the U.S. House as of Wednesday, April 22, 2020, with a House vote scheduled on Thursday.
If you need more information or assistance regarding the PPP application process or the forgiveness calculations for PPP loans, please reach out to any of your contacts at Schneider Downs.
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