4/22/2020
Chamber Members,
Below is a breakdown of the additional funds provided through the CARES Act and the Payroll Protection Program yesterday.
Paycheck Protection Program & Health Care Enhancement Act (“Coronavirus 3.5”)
- An additional $321 billion for the SBA Paycheck Protection Program
- An additional $10 billion for the SBA Emergency Economic Injury Disaster Loan Program
- An additional $50 billion for SBA 7(b) Disaster Loans
- An additional $75 billion for hospitals and healthcare providers
- $25 billion for COVID testing
Paycheck Protection Program
$321 billion (in addition to $349 billion from the CARES Act)
- Sets aside $30 billion of the appropriation for loans from:
- Banks with $10 billion to $50 billion in consolidated assets and
- Credit Unions with $10 billion to $50 billion in consolidated assets
- Sets aside $30 billion of the appropriation for loans from:
- Community Financial Institutions (see definition below),
- Banks with less than $10 billion in consolidated asset, and
- Credit Unions with less than $10 billion in consolidated assets
- Defines “Community Financial Institutions” as:
- Community Development Financial Institutions as defined by section 103(5) of the Riegle Community Development and Regulatory Improvement Act of 1994 (42 USC 4702(5))[1],
- A minority depository institution as defined by Section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 USC 1463 note)[2], and
- A development company certified under Title V of Small Business Investment Act of 1958 (15 USC 695)[3]
Public Health & Social Services Emergency Fund
$75 billion (in addition to $100 billion from the CARES Act)
- Terms are the same as the CARES Act
- HHS to allocate funds to eligible health care providers, including Medicare or Medicaid enrolled suppliers and providers, private hospitals, public hospitals, and community health centers
- Funds can be used for construction or leasing of temporary facilities, medical supplies and PPE, increased workforce and training, emergency operations centers, and surge capacity
Public Health & Social Services Emergency Fund
$25 billion to research, develop, validate, manufacture, purchase, administer, and expand capacity for COVID-19 tests
- $11 billion to states
- $2 billion allocated to states and localities according to the 2019 formula for the Public Health Emergency Preparedness Cooperative Agreement
- $4.25 billion allocated to states and localities based on relative number of COVID-19 cases,
- $750 million allocated to tribes
- States and localities must submit COVID-19 testing plans to HHS within 30 days of enactment including goals for number of month-by-month tests, laboratory capacity, and community mitigation
- $1 billion to CDC for surveillance, epidemiology, lab expansion, contact tracing, public health data surveillance, and analytics infrastructure modernization
- $1.8 billion to NIH research and development
- $1 billion to Biomedical Advanced Research and Development Authority for research and development
- $825 million for community health centers (in addition to CARES Act and Supplemental Appropriation Act funding)
- $1 billion to cover the cost of testing uninsured people
Have a great day,
Chris Hardy, CCE, IOM
President & CEO
[2]https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1463&num=0&edition=prelim (note re: Preserving Minority Ownership of Financial Institutions)