WASHINGTON -- The U.S. House of Representatives passed legislation approved by the Senate to authorize $310 billion in additional funding for the Paycheck Protection Program, the U.S. Treasury administered loan program designed to keep employees on small company payrolls. Initial funding of $350 billion, created as part of the $2 trillion CARES Act rescue package, ran out of funds last week.
Following House action, the President will sign the measure (H.R. 266) and the PPP program will be operational again fairly quickly, reported the Wood Machinery Manufacturers of America on April 23.
Those companies that applied for PPP forgivable loans but did not receive funding in the first round should be in touch with their banks to ensure that paperwork is in order and ready to be processed as demand for these funds continues to be strong, WMMA headquarters reported. Estimates are that this additional $310 billion will last about a week.
The legislation, H.R. 266, includes a total of $484 billion in aid and economic stimulus that includes: $310 billion in additional lending authority for the Paycheck Protection Program with funds set aside to support loans issued by smaller lenders; $60 billion for separate disaster loans to small businesses; $75 billion for hospitals; and $25 billion for virus testing.
Eligibility rules governing which businesses are permitted to receive funding under PPP are unchanged under H.R. 266.
Enactment of H.R. 266 will mark the fourth package addressing COVID 19 relief. WMMA expects at least one more relief measure to be negotiated by Congress and the Administration, likely when Members of Congress return to Washington in May.
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