On Tuesday afternoon, April 21, 2020, the US Senate passed by unanimous voice vote, a bipartisan deal that will supply an additional $310 billion into the Paycheck Protection Program. This federal program is administered by the Small Business Administration (the “SBA”) and designed to extend loans to small business owners to enable those businesses to retain their employees and keep their companies afloat amid the coronavirus pandemic.
In addition, the proposed legislation adds an additional $60 billion to the SBA’s Economic Injury Disaster Loan program, provides $75 billion in funding for hospitals; and adds $25 billion for funding increased coronavirus testing. The bill provides lending capacity intended for smaller lenders, community banks, credit unions and non-profit lenders. In contrast to the initial Paycheck Protection legislation, this bill is focused on providing relief to small business borrowers that may not have existing lending relationships.
The US House is expected to vote on the proposed legislation on Thursday, April 23rd. President Trump has indicated that he will sign the legislation into law and has expressed his desire to do so by week’s end. The bill does not contain funding for state or local governments that have been impacted by the current crisis, but congressional leaders and the president have expressed their intention to address this need in the next round of legislation.
The Stock and Leader Covid-19 Business Response Team continues to monitor developments in this challenging time. Working remotely, we are available for consultation to provide advice to clients in navigating the current situation and assist in seeking available financial relief. Contact a member of Stock and Leader’s Business Law team today:
Neil A. Slenker, Esq.
Ronald L. Hershner, Esq.
Steven J. Koehler, Esq.
Kate E. Hynes, Esq.
Joseph D. Baublitz, Esq.