After much negotiation, Congressional leaders announced the Paycheck Protection Program and Health Care Enhancement Act, which the Senate passed by voice vote yesterday afternoon. This latest COVID-19 response bill comes on the heels of the announcement last week that the Paycheck Protection Program (PPP), which was established as part of the March 27, 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act to help support small businesses and stabilize the economy had run out of money in less than two weeks.
While this bill will certainly be a big deal for those businesses that have applied for, but not yet received, a PPP loan, Congressional leadership is characterizing it as an interim funding effort, with the expectation that they will continue to negotiate a larger "phase 4" package in the coming weeks. In particular, this bill does not address relief measures for states and localities that the Democrats were pushing for and that we expect to see as part of a larger phase 4 package. Moreover, many are predicting that the new influx of cash into the PPP Loan money provided for in this bill will run out within a few weeks.
As proposed, the new bill would, among other things:
This bill simply increases funding and does not make any substantive changes to the PPP or the EIDL program. Thus those small businesses that have already obtained funding through either program will not be impacted.
While the House is currently out of session, it is anticipated that the chamber will reconvene as soon as Thursday to vote on the bill.
The Senate yesterday passed the bipartisan "Paycheck Protection Program And Health Care Enhancement Act Of 2020" by voice vote.
The bill now goes to the House, which is expected to pass it Thursday or Friday.
President Trump urged Congress to support the bill, which was negotiated with Senate and House leaders by Treasury Secretary Mnuchin.
The bill adds $483 billion to costs of fighting the pandemic. Of this amount, $370 billion is added to the Paycheck Protection Program for small business, and the remainder for health care providers.
President Trump said he'll move immediately to a fourth coronavirus bill covering infrastructure, a payroll tax credit, and other tax incentives. In this fourth bill, our WOTC Coalition will make an all-out effort for permanent WOTC, permanent VOW To Hire Heroes Act credits and Empowerment Zone benefits, and program enhancements for veterans' families, people with disabilities, and others.
We will keep you informed.
Text of H.R. 266, Paycheck Protection Program And Healthcare Enhancement Act (PPPAHCEA), as passed by the Senate on April 21, 2020 may be found as follows:
Go to www.congress.gov
then insert "H.R. 266" in the box, and when H.R. 266 appears, click on "PDF" for the full text of the bill.
PPPAHCEA is in the form of a McConnell Amendment to the original Department of Interior Appropriations bill, H.R. 266.
The bill is now before the House for action this week.