President Trump Signs Bill to Replenish Paycheck Protection Program
Following passage by an overwhelming margin in the U.S. House of Representatives Thursday, President Trump today signed into law the Paycheck Protection and Healthcare Enhancement Act, infusing $320 billion in additional funding into the Small Business Administration’s Paycheck Protection Program (PPP).
PPP is a lending program created to help small employers retain employees on their payrolls during the coronavirus (COVID-19) pandemic and resulting economic emergency. In addition to providing additional funding for the small business loan program, the legislation also provides new funding for hospitals dealing with the immediate effects of the pandemic, and—specifically—for enhanced COVID-19 testing.
PPP loans, which, under certain conditions, may be forgiven, can be used not only for employee wages and salaries, but also to fund employee retirement and health benefits.