Coronavirus Aid, Relief and Economic Security (CARES) Act – Paycheck Protection Program
On April 24, 2020, President Trump signed the stimulus package that replenishes the coronavirus aid program for small businesses.
The $484 billion coronavirus relief bill amends the CARES Act and replenishes the small business rescue program, the Paycheck Protection Program (PPP) and among other things, delivers aid to hospitals. To address concerns that funds were not reaching the smallest business, the new bill also provides $30 Billion for community lenders, small banks, and credit unions.
Highlights of the stimulus package:
- Provides immediate funds to the PPP by increasing funding from $349 billion to $659 billion.
- Approximately $60 billion would be set aside for businesses that do not have established banking relationships such as rural and minority owned companies.
- Provide $60 billion in loans and grants for the Small Business Administration’s disaster relief fund.
- Increases the authorization level for the Emergency Economic Injury Disaster (EIDL) grants from $10 billion to $20 billion.
- Provides $75 billion for hospitals and $25 billion for coronavirus testing.
While the bill delivers much-needed funding to the programs designed by the CARES Act, the additional aid makes no changes to the Coronavirus Relief Fund for state and local governments.
Paycheck Protection Program and Health Care Enhancement Act (U.S. HR 266):
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