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More Help for Small Business

April 23, 2020
e-Newsletter Archive

More Help on the Way

Paycheck Protection Program and Health Care Enhancement Act

On Thursday, the House reconvened to pass the Payroll Protection Program and Health Care Enhancement Act. This bipartisan legislation includes additional assistance for small businesses, health care providers, and funds for testing. Shortly, President Trump will sign the legislation into law.


Paycheck Protection Program

This bipartisan legislation allocates $310 billion for the Small Business Administration's Paycheck Protection Program (PPP), which allows small business owners to cover operating expenses and make payroll during this challenging time with a forgivable loan. Having heard concerns from hundreds of small business owners across the district, this program is integral for our ability to revive our economy and keep as many jobs on Main Streets across America.


My staff and I have spent countless hours over the past number of weeks assisting smaller lenders, who traditionally do not issue SBA loans, and helping small business owners navigate the application process. The new legislation reserves $60 billion specifically for small lenders, and other lending institutions who may have faced additional burdens during the initial PPP rollout due to inexperience issuing SBA loans.

While I'm glad to see this bill move forward, it is unfortunate that so many small business owners had yet to receive a PPP loan but were forced to wait this past week when the program had run dry.

Economic Injury Disaster Loans and Grants

Another SBA program, Economic Injury Disaster Loans and Grants, will receive an additional $60 billion, authorized in the Paycheck Protection Program and Health Care Enhancement Act.

  • $50 billion for economic injury disaster loans - each loan can be up to $2 million with interest rates not to exceed 4% and long-term repayment periods of up to 30 years; and         
  • $10 billion for grants of up to $10,000 that do not have to be repaid.

Help for Health Care Providers and Hospitals


Not only are many providers and hospitals on the frontline of this battle, but they are also enduring financial hardship due to restrictions on revenue-generating elective procedures. While Congress has included relief funding in previous response bills, the Paycheck Protection Program and Health Care Enhancement Act will provide an additional $75 billion for health care providers and hospitals.

Last month, President Trump signed the CARES Act, which authorized $100 billion for health care providers and hospitals, and while a portion has already been distributed, including health centers in our district, another $5 million will also be sent to the Michigan Center for Rural Health. Within the next week, another round of disbursements is expected to go out to providers. 


Increased Funding for Testing

While approximately 4.5 million tests have been conducted in the United States, and more testing sites are available, the Paycheck Protection Program and Health Care Enhancement Act provides an additional $25 billion to further enhance testing efforts. While each of the three COVID-19 response bills authorized significant funding for testing, this additional funding will further aid in development, and increase deployment.