On April 24, 2020, the President signed into law the Paycheck Protection Program and Health Care Enhancement Act (the “Enhancement Act”), an interim stimulus package that includes additional funding for the Paycheck Protection Program (“PPP”), Economic Injury Disaster Loan (“EIDL”) program and relief directed to hospitals, states and testing.
Specifically, the Enhancement Act provides additional funding to the PPP and Economic Injury Disaster Loan (“EIDL”) programs of $310 billion and $60 billion, respectively. Of the $310 billion to the PPP, $60 billion is earmarked for small lenders and community-based financial institutions, to meet the needs of underserved small businesses and not-for-profits. With respect to the EIDL program, $50 billion for new EIDLs and $10 billion for EIDL Grants. Further, agricultural enterprises, with not more than 500 employees, are now eligible to apply for the EIDL program.
Additionally, $75 billion was allocated to the health care system, specifically, “eligible health care providers” for COVID-19 response. Eligible health care providers include public entities, Medicare and Medicaid enrolled suppliers and such for-profit entities and not-for-profit entities not otherwise described in the Enhancement Act that the Secretary of Health and Human Services (the “Secretary”) may specify, that provide diagnoses, testing or care for individuals with possible or actual cases of COVID-19.
Lastly, $25 billion was dedicated to increasing testing and contract tracing capabilities in response to COVID-19, which was allocated to (1) the states, localities, territories, tribes, tribal organizations, urban Indian health organizations or health care service providers to tribes; (2) the Center for Disease Control and Prevention; (3) the National Institute of Health—National Cancer Institute; (4) the National Institutes of Health—National Institute of Biomedical Imaging and Bioengineering; (5) the National Institutes of Health—Office of the Director; (6) the Biomedical Advanced Research and Development Authority; (7) the Department of Health and Human Services—Food and Drug Administration—Salaries and Expenses; (8) the Health Resources and Service Administration—Primary Health Care; (9) to rural health clinics as defined under the Social Security Act and (10) testing for the uninsured.
The Enhancement Act also requires certain ongoing reporting by the Secretary, including, reports on testing, a strategic testing plan and positive diagnoses, hospitalizations, and deaths.
This alert does not purport to be a substitute for advice of counsel on specific matters.
Harris Beach has offices throughout New York State, including Albany, Buffalo, Ithaca, Long Island, New York City, Rochester, Saratoga Springs, Syracuse and White Plains, as well as New Haven, Connecticut and Newark, New Jersey.