$2T CARES Act: Get ready for PPP Round #2
$2T CARES Act: Get ready for PPP Round #2
$484 billion | Expanded PPP | Expanded coverage for hot spots
Here’s what you need to know. CARES Act was signed into law on March 27th, 2020. As part of the act, the Paycheck Protection Program (PPP) loans opened doors on April 3rd, 2020. Within 13 days, $349 billion were disbursed and PPP was out of money. It’s being considered both a success and failure. Several large entities benefited, including Harvard. Apparently, 3x the original money is required to grant all loans.
The Senate has now passed the Paycheck Protection Program and Health Care Enhancement Act (PPP & HCE Act). It’s $484 billion relief package:
◘ $310 billion for PPP Round #2
◘ $75 billion for hospitals and healthcare providers (this adds to $100 billion outlined earlier, targeted at hot spots, CMS said. No further details)
> Remember that HHS is willing to pay for losses due to COVID-19 under this fund
◘ $25 billion to expand COVID-19 testing (avail this if you’ll be administering COVID-19 tests, labs, contact tracing, testing uninsured)
If you’ve applied for PPP and got the money, do nothing.
If you applied for PPP but didn’t receive the money, contact your lender (bank). Make sure your application was processed. Resubmit if necessary.
There are no new rules in the PPP program.
If you haven’t applied for PPP, then get ready to do so THIS WEEK. It’ll go into law shortly and you must take quick action. I’ve learnt that this round will be exhausted even more rapidly than round #1.
Resources:
1) $2T CARES Act: What do GI practices need to know right now?
2) Easy-to-use PPP Loan Calculator
3) YouTube video explainer to understand the calculator
4) Latest PPP Loan application
5) PPP Loan payment report
6) Updated PPP FAQs (as of April 17th, 2020)
References:
- First Look: Expanded Paycheck Protection Program Throws Small Businesses Another Lifeline (Forbes)
- U.S. Senate Passes the “Paycheck Protection Program and Health Care Enhancement Act,” Adding $310 Billion to the PPP Fund (Butzel Long)
- BAI20328 (original text of the act)
_
By Praveen Suthrum, President & Co-Founder, NextServices.
We developed an easy-to-use PPP Loan Calculator to help you estimate: