Congressional leaders and the White House have reached an agreement on a deal that will replenish funding for the Small Business Administration (SBA) Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL). The agreement includes about $475 billion in new funding.
The Senate approved the package by a voice vote on Tuesday and the House is expected to approve it later this week, with President Donald Trump signing it into law soon after.
Physician practices and other eligible entities impacted by COVID-19 are encouraged to act quickly to apply for any funding they may be eligible for as soon as the package is signed into law. Information on SBA funding mechanisms and eligibility requirements is available here.
The AOA is hosting two webinars related to this new round of funding:
- How to apply for funding: On Friday, April 24 at 7 p.m. CT, David Pugach, JD, AOA senior vice president of public policy, will share an overview of the federal resources, the intended use of the funds, eligibility criteria, action required to receive funding, challenges associated with funding, and any associated obligations. To receive CME for this webinar, register here. To attend this webinar without CME, register here.
- Taking advantage of the Paycheck Protection Program: On Wednesday, April 29 at 7 p.m. CT, presenters will share steps for physicians and their practices to take to apply for PPP funding as well as a checklist of required reports and documentation. To receive CME for this webinar, register here. To attend this webinar without CME, register here.
The details of the deal
The PPP will have more than $300 billion in new funding, $60 billion of which will be set aside for businesses without existing banking relationships.
In addition to PPP funding, the SBA will receive an additional $60 billion for loans and grants for economic disaster assistance, including $10 billion for EIDL Advance grants. These EIDL grants are one-time $10,000 payments to small businesses impacted by COVID-19.
The funding package will also provide the U.S. Department of Health and Human Services with an additional $75 billion for the Public Health and Social Services Emergency Fund, which has funded the recent Provider Relief Payments.
This funding is to be used to cover eligible health care providers’ health-care-related expenses or lost revenues from COVID-19; cover costs associated with providing COVID-19 testing, diagnosis and care (including suspected cases); and pay for costs associated with building infrastructure or increasing capacity to address the COVID-19 outbreak.
The package also includes $25 billion to support COVID-19 research and testing.