Overview
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On April 21, the Senate passed the Paycheck Protection Program and Health Care Enhancement Act. The bill—a $484 billion package dubbed "Phase 3.5"—will replenish the Small Business Administration's (SBA) loan and grant programs; provide support to hospitals and medical facilities; and expand federal, state, and local coronavirus testing efforts.
Specifically, in an effort to provide some relief to the nation's small businesses, the deal reached by Congressional leaders and President Trump includes:
- An additional $310 billion for the SBA's Paycheck Protection Program, with $60 billion specifically allocated for loans made by small lenders and community-based institutions;
- An extra $50 billion for the SBA's Economic Injury Disaster Loan (EIDL) program;
- An extra $10 billion for the SBA's Emergency Economic Injury Grant program;
- A clarification that agricultural enterprises with 500 or fewer employees are eligible to receive EIDLs and emergency grants; and
- An additional $2.1 billion for the SBA's administrative expenses.
In addition to small business funding, the deal includes $75 billion for hospitals and medical facilities to fight coronavirus and $25 billion for COVID-19 testing. Almost half of the funding for COVID-19 testing is allocated to states, localities, territories, and tribes, while the rest is apportioned among the Centers for Disease Control and Prevention, the National Institutes of Health, the Biomedical Advanced Research and Development Authority, the Food and Drug Administration, and Community Health Centers and rural health clinics. Up to $1 billion may be used to cover costs of testing for the uninsured.
The House is scheduled to vote on the legislation on April 23 after which President Trump is expected to sign it into law.
