Small business paycheck protection program
The purpose of the Paycheck Protection Program (PPP) is to keep people employed during the Coronavirus (COVID-19) pandemic. During the application process, business owners have been concerned about whether additional funding would be available for the program.
Previously, these two articles were written about the precautions to slow the spread of COVID-19 and the federal laws designed to help the economy
So, the Paycheck Protection Program provides financial help for small businesses, including forgivable loans through the Small Business Administration (SBA).
Congress initially authorized $349 billion for this program. Because of the high demand, there was a need for additional funding by Mid April.
Congress’s response to the need for funding to stimulate the economy
Congress approved, and the President signed these three bills designed to stimulate the economy.
- Step 1 – Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020 (Public law 116-123 3/6/2020)
- Step 2 – Families First Coronavirus Response Act (FFCRA or Act) (Public law 116-127 3/18/2020)
- Step 3 – Coronavirus Aid, Relief, and Economics Act or the CARES Act (Public law 116-136 3/27/2020)
For instance, the CARES Act included a key component called the Paycheck Protection Program. This program provided loans, grants, and other types of assistance to small businesses. The allocation from Congress for these SBA guaranteed loans totaled $349 billion.
As a result of the need for additional funding, Congress passed the Paycheck Protection Program and Health Care Enhancement Act. The President signed this economic stimulus bill on 4/24/2020.
Paycheck Protection Program and Health Care Enhancement Act (Public Law 116-139 4/24/2020)
In short, Public Law 116-139 (the Act) provides additional funding for the programs of the Small Business Administration (SBA) and the Department of Health and Human Services (HHS).
Subsequently, this increase in funding allows the SBA to continue accepting applications for PPP loans.
Small Business Administration program funds
Above all, the Paycheck Protection Program was amended to increase the allocation of guaranteed loans from $349 billion to $659 billion. Companies can apply through their local bank for these funds.
In addition, the SBA’s website has information about additional funding for the Economic Injury Disaster Loan.
Funds for Department of Health and Human Services (HHS)
For instance, the HHS received $75 billion to be allocated to healthcare providers for the reimbursement of healthcare-related expenses or lost revenue attributed to COVID-19.
In addition, $25 billion was allocated for expenses to research, develop, and expand capacity for COVID-19 tests.
To clarify, the Department of Health & Human Services (HHS) has the mission to protect the health of all Americans.
SBA Economic Injury Disaster Loan Application (EIDL)
Further, the Act allocated an additional $50 billion for the Economic Injury Disaster Loan (EIDL) program.
LIkewise, the Emergency EIDL grants increased by $10 billion to $20 billion. The SBA administers both these programs.
More information about this bill.
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