April 24, 2020
HIDA Breaks Down The Paycheck Protection Program And Health Care Enhancement Act
Due to the popularity of the Paycheck Protection Program, Congress has passed the Paycheck Protection Program and Health Care Enhancement Act to replenish relief funds for small businesses and healthcare providers. The Paycheck Protection Program was recently depleted after being signed into law as part of the CARES Act less than a month ago.
Specifically, the measure will provide:
- $310 billion in additional forgivable loans to small businesses and nonprofits under the Paycheck Protection Program.
- $50 billion for SBA Economic Injury Disaster Loans, which is expected to support $350 billion in emergency loans, as well as another $10 billion for associated disaster grants.
- $75 billion more to reimburse hospitals and other healthcare providers for costs associated with the pandemic. Language remains the same as CARES Act and HHS will be responsible for distributing the funds.
- $25 billion to support national testing. This funding can be used to research, develop, validate, manufacture, purchase, administer, and expand capacity for tests. A further breakdown of these funds is below.
- $11 billion for states, localities, territories, and tribes
- $4.25 billion provided to areas based on relative number of COVID-19 cases
- $2 billion provided to states consistent with the Public Health Emergency Preparedness grant formula
- $1.8 billion provided to the National Institute of Health (NIH)
- $1 billion provided to the Centers for Disease Control and Prevention (CDC)
- $1 billion for Biomedical Advanced Research and Development Authority (BARDA)
- $825 million for Community Health Centers and rural health clinics
- $750 million provided to the Indian Health Service
- $22 million for the Food and Drug Administration (FDA)
- Up to $1 billion may be used to cover costs of testing for the uninsured
HIDA expects another relief package. It likely will feature similar debate around funding for providers and state and local governments among an array of other issues.