On Thursday, April 23, 2020, Congress Passed the Paycheck Protection Program and Health Care Enhancement Act (PPP & HCE Act), and the President signed it into law Friday, April 24.
The PPP & HCE Act is an expansion of the Paycheck Protection Program (PPP) portion of the CARES ACT passed in late March. The original $350 billion earmarked for small business paycheck loans has been exhausted; the new legislation adds $310 billion more to the program. Additionally, the PPP & HCE Act includes:
- $60 billion for the SBA’s economic injury disaster loans and grants, including:
- $50 billion for economic injury disaster loans – each loan can be up to $2 million with interest rates not to exceed 4% and long-term repayment periods of up to 30 years;
- and $10 billion for grants of up to $10,000 that do not have to be repaid.
- $100 billion in emergency supplemental appropriations, $75 billion of which is designated for hospitals and health care providers, and $25 billion of which is designated for the ramp-up of COVID-19 testing.
- Additional funds are provided for the SBA to administer these programs.
It is critical that any small employers who have already applied for a PPP loan check with their lender, as the Interim Final Rule states explicitly, you can only apply for one PPP Loan. Contact your bank to see if they still have your application and whether or not it will be submitted when the SBA begins accepting new PPP loan applications. If you are a small business owner who has not applied for PPP loans, you can start your application now. You must submit SBA Form 2483 (Paycheck Protection Program Application Form) and payroll documentation.
Contact a Small Business Association lender if you have specific questions about eligibility, funding, etc.