Update: April 25 , 2020– The SBA will resume accepting Paycheck Protection Program applications from participating lenders on Monday, April 27, 2020 at 10:30am EDT.
The PPPHCE Act is a replinishing of the PPP & EIDL funds as outlined in the CARES Act. You can find all the details on these programs here: CARES Act
Updated 04/24/2020 1:09 pm
The SBA has issued new guidance that makes it “unlikely” that large public companies can access the funding in the Paycheck Protection Program and Health Care Enhancement Act.
“Borrowers still must certify in good faith that their PPP loan request is necessary,” the SBA said. “It is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification.”
“Any borrower that applied for a PPP loan prior to the issuance of this guidance and repays the loan in full by May 7, 2020 will be deemed by SBA to have made the required certification in good faith,” the SBA said.
Updated 04/24/2020 12:45pm
President Trump has signed the Paycheck Protection Program and Health Care Enhancement Act into Law.
Updated 04/23/2020 05:40pm
The House approved H.R. 266 by a 388-5-1 vote. This new bill provides addtional funding for PPP & EIDL.
This bill is titled the “Paycheck Protection Program and Health Care Enhancement Act”
Both Republicans and Democrats are referring to this as “interim” legislation meant to bridge the gap between the $2 trillion CARES Act and the next expansive round of coronavirus legislation.
H.R. 266 now heads to the President’s desk for signing. We expect he will sign at noon on Friday, April 24, 2020.
The SBA should open the EIDL portal again by Monday, April 27th and funds should begin flowing to existing and new PPP and EIDL applications.
The provisions of the House bill include the same provisions as the Senate version:
- $310 billion total for PPP, with:
- $250 billion unrestricted and
- $60 billion set aside for smaller institutions.
- $30 billion will go to lenders with assets of less than $10 billion,
- $30 billion will go to lenders with assets between $10 billion and $50 billion.
- $60 billion for EIDL program
- $10 billion for EIDL grant
- $50 billion for EIDL loans
- $75 billion for hospitals
- $25 billion for testing, $11 billion of which will be distributed to states
- $2.1 billion for Small Business Administration administrative expenses
- Eligibility for these funds are the same for The CARES Act
If you have not already submitted an application, do this immediately. The PPP and EIDL funds will be depleted quickly.
See our summary to view all the details of the PPP, EIDL, tax refief credits, IRA and RMD changes, relief checks and more.
If you need assistance navigating the complexities of these laws and funding programs, contact us.
Updated 04/22/2020 11:56am
The Senate short title is: Paycheck Protection Program and Health Care Enhancement Act.
Purpose for this bill: Additional Emergency Appropriations for Coronavirus Response
The text of the bill can be read at Congress.gov
The House is set to approve the bill on Thursday, April 23, 2020.
Updated 04/21/2020 05:05pm
The Senate has voted and passed the funding for the Relief Bill.
Here’s what happened on the floor of the Senate today at 4:00pm.
During a pro forma session today, Senate Republicans and Democrats voted on replenishing the depleted funds in the CARES Act.
The vote was unanimous.
The $484B Bill includes:
- $310 billion total for PPP, with $250 billion unrestricted and $60 billion set aside for smaller institutions. Half of the $60 billion would go to lenders with assets of less than $10 billion, and half would go to those with assets between $10 billion and $50 billion.
- $50 billion for EIDL loans
- $10 billion for EIDL grant
- $75 billion for hospitals
- $25 billion for testing, $11 billion of which will be distributed to states
- $2.1 billion for Small Business Administration administrative expenses
It now heads to the House. The House is expected to meet on Wednesday.
Get the details on the PPP and EIDL. After you opoen up the document, review Section 1- 3. Sole Proprietors should specifically review Section 1(s). Page 1 has all the hyperlinks to quickly move you through document.
Updated 04/21/2020 03:28pm
The Senate Republicans and Deomocrats have reached a deal today on the PPP. Here is the latest.
Here’s what the bill would include:
- $310 billion total for PPP, with $250 billion unrestricted and $60 billion set aside for smaller institutions. Half of the $60 billion would go to lenders with assets of less than $10 billion, and half would go to those with assets between $10 billion and $50 billion.
- $50 billion for EIDL loans
- $10 billion for EIDL grants.
The bill clarifies that agriculture companies are eligible for the EIDL program, after previous concern they were not.
The Senate could vote on legislation as soon as 4 p.m. ET on today.
Updated 04/20/2020 4:30pm
The Senate and House are getting closer to a deal on the PPP. Here is the latest.
The Senate and House and White House Administration are continuing to negotiate on a relief bill that is now at $470B.
It is possible that out of the $60B that may be allocated for the EIDL, $50B will be for loans and $10B of it will be for Emergency Grants.
Also included in the deal is $75B for hospitals and $25B for coronavirus testing.
House Democrats have a caucus call at 5pm today and we expect more information about moving forward with a vote.
$310B is expected to be approved to replenish the PPP, setting aside $60B for small institutions. Half of the $60B will go to lenders with assets of less than $10B and half will go to those lenders with assets between $10B and $50B.
$60B is expected to be approved for EIDL. Of the $50B will be for EIDL loand and $10B for EIDL grants.
The bill clarifies that agriculture companies are eligible for the EIDL program, after previous concern they were not.
Updated 04/20/2020 2:30pm
The Senate has not yet reached a deal on the PPP. Here is the latest.
The Senate did not reach a deal in time for a brief session today. They have set up a vote as soon as Tuesday afternoon to replenish the PPP.
According to Senate Majority Leader Mitch McConnell, “At this hour, our Democratic colleagues are still prolonging their discussions with the administration, so the Senate regretfully will not be able to pass more funding for Americans.” McConnell said the Senate will meet again at 4pm Tuesday to try to pass legislation to replenish the PPP.
The House is expected to meet as early as Wednesday to consider the bill.
Updated 04/20/2020 10:11am
A deal is still being negotiated on the PPP. Here is the latest.
Steve Mnuchin’s saying that the Senate has a brief pro forma session today, no action is expected but they could possibly reach a deal today. House Majority Leader Steny Hoyer says that the earliest is going to be on Wednesday before they take it up. Then it would go back to the Senate later in the week. This means the Paycheck Protection Program could be up and running by Thursday.
House Minority Leader Kevin McCarthy stated this morning, “Of the money that has already moved out the $350B, 60% of that all went through very small banks. In this new funding that we go through, we actually allocate another $60B that has to go through small banks as well. So this is an opportunity when there’s 700,000 small businesses with applications already in and a number of them trying to get in. ”
Updated 04/19/2020 8:28pm
A tenative deal has been reached on interim stimulus bill.
Senate Democrats and Republicans are negotiating a deal for $370B for small business loan programs.
Treasury Secretary Steven Mnuchin said President Trump is prepared to discuss funding for state and local governments in the next bill while this package focuses on loans to small businesses and hospitals and testing. The Trump administration said more than 1.6 million loans were approved to help companies.
Mnuchin said he hopes the senate will approve the bill on Monday, the House on Tuesday, the President then can sign, and the money could be available by Wednesday.
This is a verbal deal and can change. As for now it stands as follows:
$310B is expected to be approved to replenish the PPP, setting aside $60B for rural and minority groups. Credit unions, Ciit and Bank of America are accepting additional applications. Go ahead and submit an application if you have not already.
$60B is expected to be approved for EIDL. It is not clear if this if all for loans or for additional emergency grant advances.
Currently the portal for the EIDL is down. It remains to be seen if this will go back up for new applications or the new round of money will be used to fund existing applications.
Many small businesses are still waiting for their banks to process an application or confirm whether they qualify for financial assistance from the PPP fund.
If you need assistance with the calculations for the PPP loan or navigating the complexities of the PPP or EIDL or other provisions in the CARES Act, please contact us.
Please check back frequently for updates.
Updated 04/18/2020
Phase 4 is on the way. The thought is that it may focus on small business economic relief.
The Trump Administration has said that it will ask Congress for additional funding for small businesses if the initial $350 billion runs out and as of 04/15/20 the funds have run out.
The Trump Administration wants to include a payroll tax cut for employees as part of a Phase 4 stimulus relief package. President Trump would like a payroll tax cut for employees—an expansion of what was rolled out in the $2.2 trillion CARES Act last month. Under The CARES Act, employers received a payroll tax cut, but the president is working to ensure that employees are covered by that tax cut in Phase 4.
Congress is on recess until April 20, 2020. (U.S. Senate schedule) (U.S. House schedule)
Some congressmen and congresswomen in the House and Senate are currently debating an interim emergency bill worth $500 billion to tide the economy over before the passage of a more extensive CARES 2 Act.
As of April 18, 2020, the deal, according to a Whitehouse official, is expected to include $250 billion for the PPP, an unknown amount for the Economic Injury Disaster Loan program and $75 billion for hospitals across the country.
For the CARES 2 bill, Democrats are angling for more direct-to-consumer provisions, including Pelosi’s call for another round of direct payments and extended unemployment benefits within a $1 trillion new bill; Schumer’s call for $25,000 in hazard pay for essential workers, and a group of Democratic Representatives pushing for expanded SNAP benefits.
GOP leader want to see what the effect of the current bill is before making any new provisions in a new emergency bill.
There have also been a number of bipartisan initiatives over the last few days: Senators Amy Klobuchar (D-Minn.) and Kevin Cramer (R-N.D.) released a letter urging Congress to include funding for broadband for low-income families in the next bill, and Representative Tom Suozzi (D-N.Y.) is leading a group of House members in pressing for a change to the cap on state and local tax deduction.
Analysts believe Phase 4 Covid-19 relief package could pass Congress between late April and mid-May.
This information is continually changing. Please check back frequently for updates.
Working together to keep America’s businesses going,
Denise Hatcher, MAcc
