Federal COVID-19 Response Bill “3.5”; Additional Funding To Key Areas
On April 24, 2020, President Trump signed a nearly $500 billion coronavirus “Phase 3.5” relief bill that designates additional funds to the small business rescue program known as the Paycheck Protection Program (PPP). The relief bill does not add new programs, nor does it impose any new obligations on employers; instead, it solely provides additional funding for the federal COVID-19 response to support small businesses, hospitals and to help enhance COVID-19 testing.
The relief bill includes:
- $320 billion in additional funds for the PPP, a loan program designed to help small businesses with the economic fallout from COVID-19. Initially, lawmakers had allocated $349 billion to the PPP as part of the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, but the program was exhausted three weeks later. Of the new funding, $60 billion would be set aside for smaller lending institutions with the intent of reaching underbanked businesses.
- $10 billion for Emergency Economic Injury Disaster Loans (EIDL) grants, plus $50 billion more for loans.
- $50 billion for SBA’s Disaster Loans Program Account
- $75 billion for the Public Health and Social Services Emergency Fund to support health care providers and local hospitals by providing reimbursements for COVID-19 related expenses, public health services, and lost revenue for uninsured Americans infected by COVID-19.
- $25 billion for COVID-19 testing, including $1 billion for testing costs for individuals without health insurance, $1 billion for the U.S. Centers for Disease Control and Prevention (CDC), and $11 billion for states and municipalities.