The Coronavirus Aid, Relief, and Economic Security Act, enacted on March 27, 2020, contained the Paycheck Protection Program (“PPP”), a $349 billion financial relief measure for, generally, small businesses. The PPP provides loans to small businesses and nonprofit organizations. To the extent that the funds from the loans are spent during an eight-week period after funding on qualified costs and certain other requirements are met, the loans are forgiven tax-free. The program launched on April 3. The program was out of money on April 16.
Yesterday (April 21, 2020), the Senate passed a $484 billion bill entitled the “Paycheck Protection Program and Health Care Enhancement Act.” The bill is expected to be approved by the House of Representatives tomorrow. President Trump has said that he would sign the bill into law promptly.
The bill provides for $310 billion to replenish the PPP, with $60 billion set aside for small, midsize, and community lenders, which Democrats say can better serve “under-banked” small businesses.
The bill adds $60 billion to the Economic Injury Disaster Loan fund – $50 billion for loans and $10 billion for grants.
$75 billion is appropriated for hospitals, with a bias toward rural hospitals.
$25 billion is appropriated for a number of COVID-19 testing initiatives. The bill mandates that the Trump administration establish a national strategy to help states and localities test for the COVID-19. States and localities are required to outline their own plans for testing.
This legislation brings to about $2.7 trillion the amount of federal aid that Congress has approved in the past six weeks in response to the COVID-19 health and economic crises. It is clearly considered an interim measure and has been dubbed by some as “Phase 3.5.” Discussions about Phase 4 relief will begin in earnest when this bill is signed into law in the next few days.
If you have a PPP loan request pending, check with your lender to confirm that you are still in the queue for approval and determine the expected timetable. If you have not requested a loan yet and you think that you may qualify, you should contact lenders to see if you can start the process. Act now.
If you need help with your PPP loan request or have any other questions about this legislation, contact your HM&M advisor.
For more information check out HM&M’s COVID-19 Resources page.
HM&M COVID-19 ResourcesRelated Posts
MANY TAX EXTENDERS REINSTATED PERMANENTLY On December 18, Congress passed and the President signed into law a bipartisan, bicameral agreement on approximately fifty temporary tax provisions that have routinely, if not always timely, been ...
It is time to do yearend tax planning. We think that it is fair to say this yearend is unlike most other yearends, if not unlike any other yearend. Several unusual factors affecting tax planning ...
The Families First Coronavirus Response Act (H.R. 6201 or “the Act”), became law on March 18, 2020. The Act guarantees free testing for the novel coronavirus (COVID-19), establishes emergency paid sick leave, expands family and ...
The United States Supreme Court has agreed to hear California v. Texas (known as Texas v. U.S. in previous litigation) Docket No. 19-840, in which several states are arguing that the individual mandate in the ...
Latest Blog
As this reminder was going to press, a Texas-based federal court issued a preliminary injunction prohibiting the federal ...
The landscape of gift and estate tax planning is experiencing significant shifts, with the upcoming 2026 sunset looming ...
Are you planning to make a Qualified Charitable Distribution (QCD) in 2024? Yes? Then read on … A ...
HM&M Updates
DALLAS, Dec. 11, 2024 – Springline Advisory, a trailblazing financial and business advisory firm, is proud to announce its partnership ...
Last month, Senior Manager, Pearl Balsara was invited to speak at the 2023 FPA DFW Annual Conference in ...
We are pleased to announce the winners of the 2022 HM&M Excellence Awards. Ronna Beemer, Keith Phillips, and ...