On Tuesday the U.S. Senate passed the Paycheck Protection Program Increase Act of 2020 (PPPI Act), sending an additional $310 in relief to small businesses through Treasury and Small Business Administration PPP loans.  

The Senate passage of the PPPI Act nearly doubles the total volume available through PPP (from $349 billion to $659 billion), but more funding may be needed, especially if shelter in place orders remain in effect for several more weeks. The House still has to act and likely won’t act until Thursday.

The PPPI Act also addresses several concerns and challenges that arose during the flurry of funding activity from the initial round. Significantly for Wisconsin, it allows agricultural enterprises (as defined by section 18(b) of the Small Business Act) with 500 employees or fewer to received EIDL grants and loans. The Act also doubles the authorization for EIDL grants (from $10 billion to $20 billion) and loans (to $50 billion). 

The Act also creates a set-aside within PPP for traditional banks, credit unions, and CDFIs: $30 billion for loans made by banks and credit unions with $10-$50 billion in assets and $30 billion for loans made by institutions with less than $10 billion in assets.  

The same forgiveness requirements and lending guidelines apply as under the CARES Act. See the resources at www.wisbank.com/Coronavirus for more information.  

WBA’s Legal team will be working with ABA & ICBA to review and analyze the bill. 

Other Items Include: 

  • $75 billion for reimbursement to hospitals and healthcare providers to support the need for COVID-19 related expenses and lost revenue.  Language remains the same as CARES Act.  This funding is in addition to the $100 billion provided in the CARES Act. 
  • $25 billion for necessary expenses to research, develop, validate, manufacture, purchase, administer, and expand capacity for COVID-19 tests.  Specific funding is provided for: 
    • $11 billion for states, localities, territories, and tribes to develop, purchase, administer, process, and analyze COVID-19 tests, scale-up laboratory capacity, trace contacts, and support employer testing. Funds are also made available to employers for testing. 
      • $2 billion provided to States consistent with the Public Health Emergency Preparedness grant formula, ensuring every state receives funding; 
      • $4.25 billion provided to areas based on relative number of COVID-19 cases; 
      • $750 million provided to tribes, tribal organizations, and urban Indian health organizations in coordination with Indian Health Service. 
    • $1 billion provided to Centers for Disease Control and Prevention for surveillance, epidemiology, laboratory capacity expansion, contact tracing, public health data surveillance and analytics infrastructure modernization. 
    • $1.8 billion provided to the National Institutes of Health to develop, validate, improve, and implement testing and associated technologies; to accelerate research, development, and implementation of point-of-care and other rapid testing; and for partnerships with governmental and non-governmental entities to research, develop, and implement the activities. 
    • $1 billion for the Biomedical Advanced Research and Development Authority for advanced research, development, manufacturing, production, and purchase of diagnostic, serologic, or other COVID-19 tests or related supplies. 
    • $22 million for the Food and Drug Administration to support activities associated with diagnostic, serological, antigen, and other tests, and related administrative activities; 
    • $825 million for Community Health Centers and rural health clinics; 
    • Up to $1 billion may be used to cover costs of testing for the uninsured. 
  • Includes $6 million for HHS Office of Inspector General for oversight activities. 
  • Requires plan from States, localities, territories, and tribes on how resources will be used for testing and easing COVID-19 community mitigation policies. 
  • Requires strategic plan related to providing assistance to States for testing and increasing testing capacity.