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House Passes $484 Billion C-19 Relief Package

April 24, 2020 by _siteadmin Covid-19 Resources

Yesterday evening, the House passed the latest $484 billion C-19 relief package aimed at small businesses and hospitals. The fourth coronavirus relief bill so far, it had overwhelming bipartisan support, passing through the House with 388-5 approval.

The package includes a $321 billion replenishment to make new loans under the Small Business Administration’s (SBA) Paycheck Protection Program (PPP), which provides forgivable loans to small business—including farms—that keep employees on the payroll for eight weeks. The bill sets aside $30 billion for loans made by banks and credit unions with $10 billion to $50 billion in assets, and another $30 billion for loans made by even smaller institutions. Additional information about PPP can be found here: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program

Importantly, the bill allows farms to now participate in SBA’s Economic Injury Disaster Loan (EIDL) program that provides businesses experiencing a temporary loss of revenue a grant for $10,000 and the ability to borrow up to $2 million under the program. This legislation also appropriates an additional $10 billion for emergency EIDL grants to remain available until expended. More information about EIDL can be found here: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance

In addition, there is $75 billion for hospitals and $25 billion for virus testing.

The Senate passed the legislation Tuesday. It will now go to President Trump for signing. Once funding is released to SBA for PPP and EIDL, the application period for each may be brief due to popularity of the programs. If interested, ASA members should review terms of the program now and be prepared to apply in a timely manner.