April 28, 2020

PPP Receives Additional Funding but Problems Persist

It also provides additional financial assistance to struggling hospitals and healthcare providers, helps farmers and appropriates significant funds for COVID-19 research and testing.

The recently enacted Coronavirus Aid, Relief, and Economic Security Act (CARES Act) amended the Small Business Act (SBA) Section “7(a)” loan program. It added a limited duration forgivable loan for small businesses affected by the COVID-19 pandemic. The PPPHCE Act provides an additional $310 billion in funding for the Paycheck Protection Program.

To address criticism of administration of the first phase of the program, the PPPHCE Act requires:

• $30 billion to be allocated to depository institutions and credit unions with assets of between $10 billion and $50 billion.

• $30 billion to be allocated to credit unions, community financial institutions and small insured depository institutions with assets of less than $10 billion

Additional measures include:

• $60 million in additional funding for Economic Injury Disaster Loans (EIDL),

• Expanded EIDL eligibility for farmers and agricultural businesses,

• $75 billion in funding to reimburse hospitals and healthcare providers for lost revenue and expenses incurred in responding to the COVID-19 crisis, and

• $25 billion to fund research and testing for COVID-19.

Administration of the additional funds began on Monday, April 27, 2020, but was hampered by significant problems with the online application system which crashed early and was down for much of the day. Anyone intending to apply for funds in the second round of disbursement should apply as soon as possible.

For more support and information relating to COVID-19, please visit the Kerr Russell COVID-19 Resource Center. If you have questions relating to employment or benefit matters, please contact a Kerr Russell attorney.

Liam K. HealyLiam K. Healy of Kerr Russell practice clients maintain compliance with state and federal tax laws that govern individuals and businesses focuses his practice on helping clients maintain compliance with the myriad of state and federal tax laws and regulations that govern individuals and businesses. A particular focus of Liam’s practice is in the area of employee benefits and ERISA. Liam specializes in designing pension and executive compensation plans to benefit business owners and executives. His practice includes drafting and reviewing deferred compensation agreements, severance agreements and non-compete agreements, representing employers in multi-employer plan collection and withdrawal liability matters.

 

Mark C. KnothImage of Mark C. Knoth, Employment and Labor attorney of Kerr Russell chairs the firm’s Labor, Employment, Employee Benefits & ERISA Practice Group. He counsels and advises business owners, managers and human resources professionals on workplace issues. These include civil rights and anti-discrimination laws; employee discipline; wage and hour; overtime; employee leaves; reasonable accommodations; veterans issues; picketing; secondary boycotts; reductions in force; drug testing; unemployment compensation; affirmative action; and union organizing campaigns, among other matters. He additionally drafts employee policies, handbooks, contracts, and covenants not to compete, and investigates threats of violence, allegations of harassment, and other employee misconduct.

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