The Small Business Administration’s Paycheck Protection Program (PPP) and Emergency Injury Disaster Loan (EIDL) funds were replenished on Friday, April 24, 2020, after President Trump signed the Paycheck Protection Program and Health Care Enhancement Act. The Act provides more than $300 billion in additional funds for the PPP and EIDL.


        Previously, we reported on March 27, 2020, the President signed the Coronavirus Aid, Relief, and Economic Security Act of 2020 (CARES Act) into law. The CARES Act initially provided the SBA with $349 billion to fund the PPP through private financial institutions, or private lenders, which in turn allocated the funding to qualified small business concern applicants in the form of potentially forgivable loans up to $10,000,000. Additionally, the CARES Act implemented a $10 billion grant program, the EIDL, where small business concerns apply directly to the SBA for a grant of up to $10,000.

        Within weeks the SBA had completely exhausted the funding provided through the CARES Act. On April 16, 2020, the SBA announced its inability to accept new applications for the two programs. More than 1.6 million applications were approved for the PPP, with millions more waiting in queue for any information on what to do next.

The Act

        The Enhancement Act allows the SBA to resume accepting PPP loan applications on Monday, April 27, 2020, at 10:30 AM EDT from approved lenders on behalf of applicants. The SBA has stated that lenders should resume processing loans, previously submitted applications, and new applications, as well as disbursing funds.

        The SBA has published additional guidance in the form of a question and answer form that can be found here. The document may answer some of an applicant’s questions and potentially may make an applicant ineligible or eligible. We advise all applicants not only to read the SBA’s guidelines but to also reach out to your normal advisors before submitting them.

        In addition to the SBA funding, the Enhancement Act apportioned additional funding to the healthcare system. $75 billion was allocated to “eligible health care providers” for COVID-19. The funding is provided through the Department of Health and Human Services (HHS) Public Health and Social Services Emergency Fund.

The CARES Act provided HHS with $100 billion for Medicare Part A or Part B enrolled individuals and entities responding to the COVID-19 pandemic. On April 10, 2020, HHS distributed $30 billion of the $100 billion to eligible recipients. However, be aware that these funds come with many conditions, and if your expenses do not qualify, the funds will need to be reimbursed.

Finally, $25 billion has been devoted to necessary expenses to research, develop, validate, manufacture, purchase, administer, and expand capacity for COVID-19 tests. This portion of the Enhancement Act specifically gives funding to states, localities, territories, and tribes to develop, purchase, administer, process, and analyze COVID-19 tests, scale-up laboratory capacity, trace contacts, and support employer testing. $825 million is also earmarked for “Community Health Centers and rural health clinics.” Almost $5 billion is being provided to various government agencies to combat the pandemic, with an additional $1 billion to cover the cost of COVID-19 testing for the uninsured.

Closing Remarks

If you have questions about any of the PPP loan forgiveness, one of our attorneys can assist you. Please do not hesitate to contact the Wladis Law Firm. We will do our best to provide you with updates and will be available to answer questions as circumstances change. We may be reached at (315) 445-1700 or by e-mailing Attorney Jennifer Huse Granzow at or by reaching out to your everyday firm contacts.