This afternoon the U.S. Senate met in a pro forma session and passed a nearly $500 billion "interim" COVID-19 stimulus package by voice vote. The bill named the Paycheck Protection Program and Health Care Enhancement Act (H.R. 266) includes additional funding for the small business Paycheck Protection Program (PPP), along with supplemental funding for healthcare providers and testing capabilities.

Notably, the legislation does not include language preventing publicly traded companies from applying for small business funds, however, the U.S. Treasury Department is planning guidance that will limit access to these companies. The legislation also does not contain language, as previously requested by Democratic leaders, defining Washington, D.C. as a state for funding purposes. While Congress has typically defined "states" as the 50 states and D.C. in funding legislation, the CARES Act (P.L.116-136) was drafted by Senate Republicans to lump D.C. in with the territories, thus significantly reducing funding.

The House is scheduled to reconvene at 10 a.m. on Thursday, April 23 to consider the legislation. A recorded vote is expected. President Trump is expected to sign the package into law once it's been approved by the House. The House is also expected to vote on a Rules change related to remote voting by proxy.

The Paycheck Protection Program and Health Care Enhancement Act included the following:

Small Business Funds

  • $310 billion in additional funding for the small business PPP, including the following to be set aside:
    • $30 billion for loans made by Insured Depository Institutions and Credit Unions that have assets between $10 billion and $50 billion; and
    • $30 billion for loans made by Community Financial Institutions, Small Insured Depository Institutions, and Credit Unions with assets less than $10 billion.
  • $50 billion for the Disaster Loans Program;
  • $10 billion for Emergency EIDL Grants;
    • Allows agricultural enterprises as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)) with not more than 500 employees to receive EIDL grants and loans.

Healthcare Provider Grants

  • $75 billion for hospitals and health care providers to support the need for COVID-19 related expenses and lost revenue (funding is in addition to the $100 billion provided in the CARES Act with the program terms & eligibility remaining the same).

COVID-19 Testing Funding

  • $25 billion to research, develop, validate, manufacture, purchase, administer, and expand capacity for COVID-19 tests, including the following:

    • $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 (these funds can also be made available to for employer testing);
    • $2 billion provided to States consistent with the Public Health Emergency Preparedness grant formula, ensuring every state receives funding;
    • $4.25 billion for areas based on relative number of COVID-19 cases;
    • $1 billion to cover costs of testing for the uninsured;
    • $825 million for Community Health Centers and rural health clinics.

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