Senate Passes Interim Relief Package Containing Additional Paycheck Protection Program and Economic Injury Disaster Loan Funds

On Tuesday, April 21, 2020 the Senate passed a bill which includes an additional $310 billion for the Paycheck Protection Program (“PPP”). A copy of the bill can be found here. Approximately $60 billion of the new funds are to be set aside for certain “small lenders” and credit unions, including $30 billion for banks and credit unions with $10 billion to $50 billion in assets and another $30 billion for lenders with less than $10 billion in assets.

In addition to the increased funds for the PPP, the bill includes an additional $50 billion for the Economic Injury Disaster Loan (“EIDL”) program and increases the amount appropriated for the $10,000 emergency advances available under the EIDL by an additional $10 billion. As well, agricultural enterprises with not more than 500 employees are now eligible to apply for Economic Injury Disaster Loans and Emergency Grants.

The PPP exhausted its initial $350 billion in funding on April 16, 2020 just two weeks after the passage of the CARES Act.

The House could vote on the legislation as soon as Thursday, after which time the President would need to sign the bill into law. Lawmakers expect that another round of stimulus legislation would follow, marking the fourth major economic rescue bill. We will continue to monitor this legislation and will provide more information as it becomes available.

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