The Paycheck Protection Program and Health Care Enhancement Act (Enhancement Act), passed by Congress on April 23, was signed into law by President Donald Trump on April 24 to address the continuing economic issues created by the COVID-19 pandemic. The Enhancement Act supplements the programs created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted on March 27, and provides additional funding for small-business loans, health care providers, and COVID-19 testing. This alert summarizes key provisions of the Enhancement Act.
Sec. 101 provides additional lending authority for certain Small Business Administration (SBA) programs, including:
The SBA is required to guarantee minimum amounts of paycheck protection loans made by certain insured depository institutions, community financial institutions, and credit unions. The expectation is that smaller businesses will be reached through these designated financial institutions.
Title I provides $100 billion in fiscal year 2020 supplemental appropriations to the Department of Health and Human Services' emergency funds, including:
Title II provides fiscal year 2020 supplemental appropriations to the SBA, including:
Small businesses with pending applications for Paycheck Protection Program loans do not need to take action in response to the Enhancement Act. Small businesses that have not yet applied for financial assistance may wish to contact their lenders as soon as possible to initiate an application.
For more Day Pitney alerts and articles related to the impact of COVID-19, as well as information from other reliable sources, please visit our COVID-19 Resource Center.
COVID-19 DISCLAIMER: As you are aware, as a result of the COVID-19 pandemic, things are changing quickly and the effect, enforceability and interpretation of laws may be affected by future events. The material set forth in this document is not an unequivocal statement of law, but instead represents our best interpretation of where things stand as of the date of first publication. We have not attempted to address the potential impacts of all local, state and federal orders that may have been issued in response to the COVID-19 pandemic.
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