The Senate passed legislation this afternoon providing additional funding for the Small Business Administration’s (SBA) Paycheck Protection Program (PPP). The program, established as part of the Coronavirus Aid, Relief And Economic Security (CARES) Act last month, provides forgivable loans of up to $10 million to small businesses during the COVID-19 pandemic to help them meet payroll and day-to-day operating expenses. The program ran through its initial $349 billion last week.
The $484 billion legislation, the result of several days of negotiation between Senate Republicans and Democrats, and the White House, provides an additional $320 billion for the PPP—with $60 billion earmarked for smaller lenders—as well as $60 billion for the Economic Injury Disaster Loan (EIDL) program—which provides small businesses with working capital loans of up to $2 million to overcome the temporary loss of revenue due to the pandemic—$25 billion for testing, $75 billion for hospitals and $11 billion for state programs.
The Senate passed the legislation following a unanimous consent vote. It now goes to the House of Representatives. House Majority Leader Steny Hoyer sent out a schedule update this week that suggests the House could vote on the bill as early as tomorrow.
Find more reports on the industry’s COVID-19 response, provisions of the CARES Act, links to related webinars and further information on PPAI’s coronavirus information page here.