The PPP and Health Care Enhancement Act of 2020: Get Ready for Round 2


The Paycheck Protection Program ("PPP") and Health Care Enhancement Act of 2020 ("PPP Act") was signed into law on April 24, 2020.

The $484 billion PPP Act has been enacted with the goal of replenishing the PPP with approximately $310 billion in additional funds, increasing availability of Emergency Economic Injury Disaster ("EIDL") Grants, and providing federal funding to assist hospitals and healthcare providers. This second round of PPP loans may end up distributed even faster than the first round since thousands of applications had been submitted to lenders by the time the first round of funds had been depleted. Sixty billion dollars of the new PPP funds will be specifically set aside for small, medium, and community lenders to distribute.

Between April 3-16, 2020, nearly 5,000 lenders across the United States approved over 1.6 million loans guaranteed by the Small Business Administration ("SBA") pursuant to the Paycheck Protection Program ("PPP") enacted under the CARES Act, totaling approximately $350 billion. The maximum loan amount is $10 million, and the average loan size was $206,000. Based upon SBA issued statistics

The subsectors applying for and receiving the most PPP dollars during the first round of PPP funding included the construction industry; professional, scientific, and technical services, manufacturing; health care and social assistance; accommodation and food services, and retail trade.

For those who have already submitted their loan applications, there is no need to resubmit one to the same lender. In addition to the guidance included in our previously issued articles, you can find the SBA Interim Rules and FAQs here for additional information.

The Interim Rules were updated on April 24, 2020, to touch on the following: 

It is expected that the SBA will issue additional guidance via "FAQs" in the coming days and weeks, and we will continue to advise you as we obtain more information.


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National Law Review, Volume X, Number 118