Senate Approves Legislation to Add Money to SBA Forgivable Loan Programs, Funds for Hospitals and Increased COVID Testing

On Tuesday afternoon, the Senate passed the COVID 3.5 bill. In order for the bill to become law, the House of Representatives must now consider the bill. The bill is expected to pass the House and be sent to the President for his signature by Thursday, April 23.

Analysis of the Senate COVID 3.5 bill:

Paycheck Protection Program (PPP)

• Adds $310 billion in funding to the Paycheck Protection Program (PPP) — Forgivable SBA loans if money used for eligible expenses. 501(c)(3) “charities” and 501(c)(19) “military organizations” are only non-profits eligible for PPP.
• Requires $30 billion in PPP loans be made by Insured Depository Institutions and Credit Unions with assets between $10B-$50B.
• Requires $30 billion in PPP loans made by community banks, credit unions and small insured depository institutions and credit unions with assets under $10 billion.

Economic Injury Disaster Loans (EIDL) and emergency grants — all non-profits eligible for EIDL

• Adds $50 billion for Economic Injury Disaster Loan Programs
• Provides an additional $10 billion for Emergency Grants of up to $10,000

The bill will now be sent to the House for consideration and will likely pass this week. There should not be any changes to the bill, otherwise the House risks forcing Senate to re-vote and delay the stimulus further.