After the Paycheck Protection Program ran out of its $349 billion in forgivable loans through the Small Business Administration within just 13 days, President Trump signed into law on April 24th the expansion of funds initially approved through the CARES Act or the Coronavirus Aid, Relief & Economic Security Act. $310 billion more will go towards PPP while $75 billion more will go towards emergency funding for hospitals and another $25 billion allotted to increase testing for SARS-CoV-2.
Paycheck Protection Program Expansion
The initial PPP guidance on businesses that qualify such as on who can apply, how can you apply, what can you apply for was rather vague. We saw big publicly traded companies taking advantage of these funds which were designed specifically to support the payroll, rent, insurance, and other expenses for small to medium-sized businesses. Shake Shack and Ruths Chris, both publicly traded companies, eventually decided to return their forgivable PPP loans after public outcry.
In response, the Fed has assured us that $60 billion of the $310 billion PPP funds will be allocated to smaller banking institutions such as your local credit union to help increase the number of loans given to very small businesses and those that are minority or female-owned. Previously, there was no specific allocation set for smaller banking institutions. You can find your nearest PPP participating bank by clicking here.
New Emergency Hospital Funding
The expansion of funds through the CARES act also includes $75 billion in new funding for the Public Health and Social Services Emergency Fund. These funds will go directly to providers to provide relief from the overwhelming amount of cost to treat the nearly one million U.S. cases of the coronavirus. Providers can also apply for PPP loans through the SBA as long as there is no duplicate funding. If a provider receives funding from multiple sources, it must pay back the funds it received from the Public Health and Social Services Emergency Fund.
At Solid Health Insurance Services, we are always here for our individual and small business clients. We strive to keep you up-to-date and informed on what matters most to you and your business. Please contact us at firstname.lastname@example.org or at 310-909-6135 to go over the individual, family or small business health, dental, vision, life and long-term care insurance.