On Tuesday, April 21st the Senate passed the Paycheck Protection Program and Health Care Enhancement Act (“PPP & HCE Act”). The House is expected to vote on and pass this bill on Thursday.

In addition to providing relief for healthcare providers and funding for COVID-19 testing, this bill authorizes an additional $310 billion for the Paycheck Protection Program (“PPP”). It also includes an expansion of the Economic Injury Disaster Loan (“EIDL”) program, increasing the available funds by $60 billion.

As the window for ‘PPP’ loans and the ‘EIDL’ program could be opened as early as Thursday/Friday, WG highly advises their clients to move quickly, as this second round of funding is anticipated to move even faster than the first.

As a reminder, PPP loans are not administered by the SBA, but instead, these can be obtained via SBA approved lenders. WG recommends that you reach out to your banker as soon as possible if you are seeking funding. Be certain that your application is approved by the bank and ready to be uploaded for SBA approval.

In contrast, the EIDL program is administered by the SBA, and applications are submitted via the SBA website. The application process may be open as soon as Thursday/Friday. More information can be found on the SBA website.

If you have any questions about whether these provisions would benefit your business, please reach out to your WG Advisor.

*Disclaimer: This article was written on April 22, 2020, the information on the CARES Act and PPP & HCE Act is further developing. The information contained in this article is for general guidance on matters of interest only. The application and impact of laws can vary widely based on the specific facts involved. Accordingly, the information in this article is provided with the understanding that the authors and publishers are not herein engaged in rendering legal services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. Before making any decision or taking any action, you should consult a WG professional.

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Dan Fiorentino

Author Dan Fiorentino

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