New Stimulus Package Further Funds Small Businesses – Contact Your Bank Today

April 22, 2020

On Thursday, April 23, 2020, the House passed the Paycheck Protection Program and Health Care Enhancement Act, a fourth coronavirus-related relief bill. The bill is awaiting approval by the President.

Banks are already indicating that these new Paycheck Protection Program (PPP) funds will be allocated within the next couple of days. If you have applied for a PPP loan, we recommend contacting your bank to ensure your loan information is complete and you are in the best position to obtain funding when it becomes available.


Despite the last stimulus package, the Coronavirus Aid, Recovery, and Economic Security (CARES) Act, being the most expensive piece of legislation passed by Congress, it still wasn’t enough to quell the economic disaster created by the coronavirus. Three months after the first reported case in the United States, the pandemic continues to cause widespread financial damage.

This new stimulus package provides $484 billion in funding that is apportioned to further fund struggling small businesses and ensure greater access to testing. The new legislation replenishes the Small Business Administration’s (SBA) Paycheck Protection Program (PPP), establishes funding for national coronavirus testing, and sends financial aid to struggling hospitals.

Some of the key components of the new legislation include:

An additional $310 billion for the PPP

The additional funding for the PPP is perhaps the most highly anticipated aspect of this new stimulus package. The PPP is a loan program created by the CARES Act to provide financial relief for small businesses through a forgivable loan (with some stipulations and restrictions). The CARES Act originally funded the PPP with $350 billion and authorized banks to distribute the loans in coordination with the SBA, intending for the funding to provide individual loans to the small businesses that needed it most.

$60 billion for disaster-related loans and grants (EIDL)

The new legislation establishes an additional $60 billion for the SBA’s disaster relief fund and expands eligibility to include farms and other agriculture enterprises. The package also provides $10 billion for Emergency Economic Injury Disaster Loan grants and $50 billion for disaster recovery loans, as well as $2.1 billion to cover the additional salaries and expenses these programs have created for the SBA.

$75 billion to hospitals

This additional funding for hospitals and healthcare providers aims to provide relief from the new expenses created by the pandemic as well as the lost revenue from widespread cancellations of elective procedures.

$25 billion for testing

The $25 billion in funding for COVID-19 testing is intended to stimulate the development, validation, manufacturing, purchasing and administration of new tests nationwide. While the new legislation generally does not provide additional funding to states and local governments, $11 billion of the funds for testing are earmarked for helping states to expand lab capacity.

Other than the funding to help expand states’ testing efforts, the new stimulus package does not include additional funding for states and local governments. Recent comments from the President suggest that more funding for states and localities that have lost revenue due to the pandemic could be included in yet another stimulus package in the future.

Aprio’s team of expert advisors are continuously monitoring new legislation as well as any accompanying guidance from the IRS. If you are struggling to weather this crisis, or if you’re unsure how to best utilize or access the new funding that may be available to you, reach out to your Aprio Relationship Partner or contact us here. Please also check out our COVID-19 Advisor content hub for the latest business advice and guidance to navigate COVID-19.

Disclaimer for services provided relative to SBA programs and the CARES Act
Aprio’s goal is to provide the most up to date information, along with our insights and current understandings of these programs and regulations to help you navigate your business response to COVID-19.
The rules regarding SBA programs are constantly being refined and clarified by the SBA and other agencies In certain instances, the guidance being provided by the agencies and/or the financial institutions is in direct conflict with other competing guidance, regulations and/or existing laws.  
Due to the evolving nature of the situation and the lack of final published rules, Aprio cannot guarantee that additional changes or updates won’t be needed or forthcoming and the original advice given by Aprio may be affected by the evolving nature of the situation. 
You need to evaluate and draw your own conclusions and determine your Company’s best approach relative to participation within these programs based on your Company’s specific circumstances, cash flow forecast and business strategy. 
In situations where resources are provided by third parties, those services should be covered under a separate agreement directly with that service provider. Aprio is not responsible for the actions of any other third party.
Aprio encourages you to contact your legal counsel to address the legal implications of the impact of the CARES Act and specifically your participation in any of the SBA programs.

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About the Author

Mitchell Kopelman

Mitchell is the partner-in-charge of Aprio’s Tax practice as well as the Technology & Biosciences group. He has been a partner since 1990 with Aprio, which is the largest Georgia-based tax, accounting and consulting firm. Mitchell works with companies in the software, gaming, clean tech, financial technology (FinTech), health care IT, processing, biosciences (biotech and medical device) and manufacturing industries. Whether a company is pre-revenue, starting up, growing or preparing for a liquidity event, Mitchell works with them to maximize their potential at each stage. He is known for promoting research, innovation and entrepreneurship by enabling companies to be successful, regardless of where they are in their business lifecycle.

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