President Trump signed the newest coronavirus aid bill into law, which provides $484 billion in relief funding. This funding will be allocated to small businesses and hospitals under stress due to the pandemic, as well as to expanding COVID-19 testing.
Breakdown of the Bill
Earlier this month, when funding for the program was released under the Coronavirus Aid, Relief and Economic Security (CARES) Act, concern from small businesses escalated as funding ran dry. The new relief package has been put into effect to relieve those fears. Highlighted below is what the bill will provide:
- $320 billion will replenish the Paycheck Protection Program (PPP), which was initially created under the CARES Act. This program was put into place to provide suffering small businesses cash quickly, incentivizing business owners to keep employees on their payroll.
- $60 billion will go to the Small Business Administration’s disaster relief fund for smaller lending facilities, including “community financial institutions, small insured depository institutions and credit unions with assets less than $10 billion.” $50 billion is intended for disaster recovery loans and $10 billion for grants under the Emergency Economic Injury Disaster Loan program.
- $75 billion will be provided to hospitals and healthcare providers to help combat coronavirus expenses and lost revenue.
- $25 billion is included for COVID-19 testing. Specifically, this funding will go towards necessary expenses to research, develop, validate, manufacture, purchase, administer and expand capacity for COVID-19 tests.
For more information on the relief package, click here.
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