Congress Increases Funding for Coronavirus Relief Programs
The U.S. Congress passed legislation to increase funding for coronavirus relief programs on Thursday, April 23, 2020. The $483.4 billion package adds funding to programs established in previous legislative packages:
- $310 billion for loans through the Small Business Administration’s Paycheck Protection Program,
- $60 billion for the SBA’s economic injury disaster loans and grants,
- $75 billion in emergency grants to hospitals and other healthcare providers, and
- $25 billion for a coronavirus testing program.
President Trump has signed the legislation.
Paycheck Protection Program
The bill increases funding for loans under the SBA’s Paycheck Protection Program by $310 billion. Of the additional funding, $60 billion is reserved for lending by small and mid-size financial institutions. An additional $11 billion is included for administrative costs.
Economic Injury Disaster Loans
Funding for the SBA’s economic injury disaster loans is increased by $50 billion. The bill also provides $10 billion for grants (loan advances with forgiveness) of up to $10,000 that each disaster loan recipient can obtain. The bill makes farms and agricultural enterprises with not more than 500 employees eligible for the loan program.
Emergency Grants to Hospitals and Other Healthcare Providers
The Department of Health and Human Services’ Public Health and Social Services Emergency Fund will receive $75 billion to provide grants to reimburse hospitals and healthcare providers for expenses or lost revenues attributable to coronavirus.
The Public Health and Social Services Emergency Fund will receive $25 billion for research, development, and administration of tests for COVID-19, including tests for both active infection and prior exposure, surveillance and contact tracing, and other activities related to COVID-19 testing. Of this amount, $11 billion is reserved for states, localities, and tribes; $1 billion is for the Biomedical Advanced Research and Development Authority (“BARDA”); and other amounts are reserved for several specific allocations.
Please visit our Coronavirus: Preparation & Response series for additional resources we hope will be helpful.
This information is provided by Vinson & Elkins LLP for educational and informational purposes only and is not intended, nor should it be construed, as legal advice.