See it and Sell it First at ASI Show Orlando – January 4-6, 2025.   Register Now.

April 24, 2020

Senate Passes More Coronavirus Relief

The House has also approved the $484 billion interim bill that will replenish the Paycheck Protection Program set up to help struggling small businesses weather the pandemic.

By  Theresa Hegel

The Senate on Tuesday, April 21 passed a $484 billion interim coronavirus relief bill to replenish depleted small-business loan programs, provide aid for hospitals and expand COVID-19 testing. On Thursday, April 23, the House approved the measure, sending it along to President Trump, who has already expressed eagerness to sign it into law.

Coronavirus Relief

The bill adds another $310 billion to the Paycheck Protection Program (PPP), the $350 billion forgivable loan program meant to keep workers on staff that dried up last week. A portion of that money – $60 billion – will be reserved for smaller community lenders giving out PPP loans. During the first round of PPP loans, many criticized larger banks for taking the lion’s share of funding and dinged big corporations accessing a program primarily meant for businesses with fewer than 500 employees. In fact, Bank of America, JPMorgan Chase, U.S. Bank and Wells Fargo are all being sued by small-business owners claiming that they unfairly prioritized clients seeking high-dollar loans, according to Politico. PPP loans cap at $10 million are 100% forgivable if used for payroll and certain other allowable expenses.

The newest coronavirus relief measure also sets aside $60 billion for the Economic Injury Disaster Loan (EIDL) program, according to CNBC. (The EIDL offers emergency grants of up to $10,000 and loans of up to $2 million for small businesses.) The Small Business Administration (SBA) stopped accepting applications for both the EIDL and PPP programs after funding ran out last week.

Promotional products companies are among the businesses applying for these programs, and though many reported dealing with delays and confusion surrounding the application process, several have said their PPP loan is likely to save their business.

It’s not yet clear how quickly the new PPP and EIDL money will become available after the new bill is signed into law. Republican Sen. Marco Rubio tweeted on Friday that the programs should be relaunching on Monday, April 27.

There’s a large backlog of small-business applications still being processed that would likely be dealt with before new applications are considered. Many expect the new round of small-business funding to be depleted in about 10 days, according to CNN.

In addition to the small-business funding, the interim bill provides $75 billion for hospitals, particularly those in rural areas, and $25 billion for virus testing.

President Trump has indicated that he will sign the interim bill quickly once it hits his desk, and that he expected discussions to begin soon after for the next round of coronavirus relief, which he wants to include funding for state and local governments, infrastructure improvement, tax incentives for restaurants, entertainment and sports, and payroll tax cuts.