Senate Authorizes Additional Relief for Small Businesses Under the Paycheck Protection Program

Most employers are aware of the Paycheck Protection Program (“PPP”) created by the CARES Act that could provide assistance with meeting payroll, but the program quickly ran out of money, leaving many without funding. To address that and other issues, the Senate passed the Paycheck Protection Program and Health Care Enhancement Act to increase PPP funding by $310 billion and also provide funding for hospitals, COVID-19 testing, and emergency disaster loans. The Senate Bill does not substantively change the PPP, but it does set aside $60 billion of the new funds to guarantee PPP loans by smaller lenders and extends loan eligibility to some agricultural enterprises.  Our guidance on the PPP available here and here.

The House is expected to approve the bill, and President Trump is expected to sign it, later this week.