President Trump has now signed the Paycheck Protection Program and Health Care Enhancement Act (PPP & HCE Act), a $484 billion package which was passed by both the Senate and the House earlier this week.
Following the passage of the $2.2 trillion CARES Act (crosslink44422) stimulus package at the end of March, one of the most talked about provisions was the Paycheck Protection Program (PPP). The CARES Act had earmarked $349 billion for PPP, which was designed to help small businesses cover their payroll, benefits, utilities, and rent and mortgage payments.
However, it came as no surprise that these loans – forgivable if certain requirements were met – ran out extremely quickly, as small businesses flocked to banks to apply for relief. On paper, $349 billion sounded like a lot of money – but it was “destined to be oversubscribed from the start.”
The public demand for more funding allocated to the PPP was a major factor in driving the creation of the latest bill.
It's important to note that banking industry groups have said that the money set aside to “replenish the emergency loan program for small businesses impacted by the coronavirus pandemic is likely already all spoken for.” Due to the volume of applications already sent to the Small Business Administration, it's likely that “much, if not all, the new money will go to those already in the queue.”
We will keep you updated as additional details on this bill come to light, as well as any upcoming legislation to be passed. Please stay tuned and contact your accounting professional with any questions.
About Lauren Detweiler
I am equal parts marketer, traveler, and writer, and I've been doing all three for as long as I can remember. I have spent most of my time since graduating university traveling and working remotely in Africa and Europe. My passion lies in conveying the right messaging to the right people, and being a part of the CountingWorks and TaxBuzz team means I get to do that not only for our company, but for clients across the country as well.
