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CARES Act – Client Alert Additional Funding

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

Today, leaders in Washington have agreed on the terms of an additional stimulus package to bolster the CARES Act and provide additional funds for small businesses, hospitals, and coronavirus testing. The new bill, entitled the Paycheck Protection Program and Health Care Enhancement Act, appropriates approximately $480 billion to help revitalize, among other CARES Act programs, the Paycheck Protection Program, which has already run out of funds. The Senate is set to approve the bill Tuesday afternoon, and the House is expected to pass the bill without issue on Thursday of this week.

Some highlights of the new stimulus package include:

  • $100 billion for the healthcare industry:
    • $75 billion designated for hospitals (a portion of which will be set aside for rural hospitals)
    • $25 billion for increased testing and contact tracing capabilities to combat the coronavirus
  • Over $300 billion to replenish the SBA’s Paycheck Protection Program
    • $60 billion of that amount to be allocated to small lenders and community-based financial institutions
  • $50 billion for the Economic Injury Disaster Loan program
  • $10 billion for the Emergency Economic Injury Grant program

The official text of the bill is forthcoming and still needs to be passed by the House before then being signed by the President. As always, Wadleigh’s COVID-19 Response Team will continue to monitor this situation closely and provide updates as the situation develops.