Today, President Donald Trump signed the Paycheck Protection Program and Health Care Enhancement Act (“PPP/HCEA”) into law. This legislation infuses approximately $300 billion into the recently depleted Paycheck Protection Program (“PPP”) and provides additional funding for healthcare providers.
Along with adding money to the PPP, the PPP/HCEA makes agricultural companies with fewer than 500 employees eligible for a small business loan. The PPP/HCEA also requires that $30 billion of the additional funding be made by local banks or credit unions. It is unclear whether companies that have pending PPP applications with the Small Business Administration will need to reapply.
The PPP/HCEA also sets aside $75 billion for various healthcare costs. Funds for healthcare costs may be used for “building or construction of temporary structures, leasing of properties, medical supplies and equipment including personal protective equipment and testing supplies, increased workforce and trainings, emergency operation centers, retrofitting facilities, and surge capacity.” To receive healthcare funding, healthcare providers will apply through the Department of Health and Human Services through procedures that have yet to be announced. Before applying for money through the PPP/HCEA, healthcare providers must exhaust other potential sources of funding.
Please contact Payne & Fears LLP if you have any questions about the PPP and the recent changes. We will continue to monitor any guidance the federal government issues about the PPP and the PPP/HCEA.
Disclaimer: Laws, regulations, and guidance on matters related to COVID-19 change rapidly. Please contact your Payne & Fears attorney for current guidance.