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CARES Act – Client Alert – Additional Funding 4.24.20

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CLIENT UPDATE: Congress passes an additional coronavirus stimulus package aimed at providing additional funds for small businesses, hospitals, and coronavirus testing.

            As expected, on Thursday night the House passed an additional stimulus package – amounting to approximately $484 billion – to bolster the CARES Act and to provide additional funds for small businesses, hospitals, and coronavirus testing. The new bill, entitled the Paycheck Protection Program and Health Care Enhancement Act, will help revitalize, among other CARES Act programs, the Paycheck Protection Program, which has already run out of funds. 

Although the package injects an additional $310 billion into the PPP and provides $60 billion for Economic Injury Disaster Loans and Emergency Advances, it is likely that these programs will run out of money in short order. As we have learned, time is of the essence in applying for these loans; if you believe you are eligible and still need a PPP Loan, you should act quickly.

Out of the $310 billion added to the PPP, $60 billion is earmarked for small community-based lenders and credit unions to address criticism that the first round of PPP loans were not finding their way to smaller businesses with the greatest need. The new bill also includes $75 billion designated to help hospitals, and $25 billion for increased coronavirus testing, among other appropriations.

The bill will now go to the President’s desk for approval, and he is expected to sign it before the end of the week. Wadleigh’s COVID-19 Response Team will continue to monitor this situation closely and provide updates as the situation develops.