Stoll Keenon Ogden PLLC | Advertising Material
April 24, 2020
Sarah Jackson Bishop
Member, Stoll Keenon Ogden PLLC
Following the distribution of all amounts appropriated for the CARES Act’s Paycheck Protection Program and Economic Injury Disaster Loan programs, the Senate passed the Paycheck Protection Program and Health Care Enhancement Act on April 21, 2020. The House of Representatives passed the legislation yesterday, April 23, 2020. The Act represents Congress’s acknowledgment that additional funds are needed for small business loans and coronavirus relief programs. The Act addresses two major topics: small business loans and healthcare-specific coronavirus response. A summary of these provisions follows:
Division A: Small Business Programs
Additional Appropriations for Paycheck Protection Program
• Appropriates an additional $321.335 billion to the program—increasing the program’s funding from $349 billion to $670.335 billion.
• Of this $321 billion, $310 billion is for small business loans. The remaining $11 billion is for administrative expenses.
• Requires that $60 billion in federal guarantees be set for loans by smaller financial institutions
Additional Appropriations for Economic Injury Disaster Loan (“EIDL”) Program
• Doubles the program’s appropriation for emergency grants from $10 billion to $20 billion.
• Appropriates an additional $50 billion for loans.
• Adds agricultural enterprises with under 500 employees to the list of eligible borrowers.
Division B: Coronavirus Response
Appropriation for Payments to HealthCare Providers
• Appropriates $75 billion for the reimbursement of healthcare provides helping to prevent, prepare for, and respond to coronavirus.
• These funds may not be used to reimburse losses that have been reimbursed form other sources, or which other sources are obligated to reimburse.
• The Secretary of Health and Human Services (“Secretary”) will administer the program and application process, and will establish requirements for documentation and reports from providers.
• Limits eligibility to providers within the U.S. or its territories that provide coronavirus diagnosis, treatment, or testing. Anticipates additional requirements to be established by the Secretary.
• Funds can be used for temporary structures, leasing property, medical supplies and equipment, including personal protective equipment, testing supplies, increased workforce and training, retrofitting facilities, and emergency operations centers.
Appropriation for Enhanced Testing
• Appropriates an additional $25 billion for research, manufacturing, purchasing, or otherwise expanding capacity for COVID-19 tests, including tests for active infection and prior exposure.
• Of this amount, $11 billion is set aside for use by state and local governments.
• $1 billion of the $25 billion is reserved for the Centers for Disease Control, and additional amounts are reserved for the National Institutes of Health, Biomedical Advances Research and Development Authority, Food and Drug Administration, and the Health Resources and Services Administration
• These provisions require detailed reporting regarding the need for and use of the funds
Stoll Keenon Ogden understands that these are trying times for our clients and our country. Our firm operations have continued uninterrupted and our attorneys are equipped to serve as we always have – for over 120 years.
Attorneys with Stoll Keenon Ogden PLLC’s Business Litigation practice provide strategic advice to businesses and professionals faced with disputes, lawsuits, arbitration and other conflicts.
Please also be sure to consult the Stoll Keenon Ogden Coronavirus Resource webpage for additional articles and information related to the latest information on new laws and directives enacted by federal, state, and local governments in response to the Coronavirus pandemic.