By Mark Valentini, Director of Legislative Affairs, PHCC-NA
Congressional leaders agreed to a deal to replenish the Paycheck Protection Program. If the Senate approves the legislation, the Paycheck Protection Program Increase Act of 2020, the U.S. House of Representatives could pass the bill before the end of the week and have it ready for the President’s signature.
The legislation will fund the PPP by an additional $310 billion. $60 billion will be set aside exclusively for community banks, with $30 billion set aside for institutions with less than $10 billion in assets and $30 billion for institutions with $10 billion to $50 billion in assets. The expectation is that smaller lenders will be able to loan money to small businesses that were unable to successfully apply for loans at larger lenders.
The legislation also adds an additional $10 billion for the SBA’s Emergency Economic Disaster Relief (EIDL) grants.
The legislation also includes an additional $100 billion for the U.S. Department of Health and Human Services for COVID-19 testing and research toward a vaccine, with $11 billion for state and local governments to administer tests.
The legislation does not expand eligibility for PPP loans to 501(c)(6) organizations like PHCC and its state and local affiliates. PHCC will continue to advocate for the inclusion of all 501(c) organizations in the next round of legislation in response to the COVID-19 pandemic, which is expected next month when Congress is expected to reconvene.