April 24, 2020

Paycheck Protection Program & Health Care Enhancement Act

Paycheck Protection Program & Health Care Enhancement Act

By  Keith L. Bell, Jr.

On Thursday, April 23, 2020, Congress passed the Paycheck Protection Program and Health Care Enhancement Act, a $484 billion COVID-19 relief package that aims to shore up small business assistance programs and provide funding to healthcare providers for coronavirus testing and treatment. The bill, which is expected to be signed by President Trump, has been described by certain members of Congress as an “interim” bill between the initial CARES Act and the next large round of COVID-19 relief.

More than $320 billion is to be used to replenish the Paycheck Protection Program (PPP), which exhausted its initial $349 billion allocation in less than two weeks, after an overwhelming number of businesses applied for the benefits. Approximately $60 billion of the second allocation will be earmarked for businesses that have established relationships with small lenders and community banks, which are thought to be a class of businesses that had difficulty in obtaining loans in the first round of funding. The bill also added agricultural enterprises, with no more than 500 employees, to the list of eligible businesses.

$60 billion is earmarked for the Small Business Administration’s disaster relief fund, with $50 billion of that amount being allocated to the Disaster Loans Program, which provides for loans of up to $2 million per small business for qualified expenses (eg. payroll, rent, and accounts payable). The remaining $10 billion will replenish the Economic Injury Disaster Loan program, which provides up to $10,000 of relief to businesses experiencing temporary hardships.

Finally, the remaining $100 billion of the funding is directed to the Public Health and Social Services Emergency Fund as follows: $75 billion is allocated to hospitals and eligible health care providers for reimbursement of COVID-19 related expenses and lost revenues and to help cover the cost of increased workforce, PPE, and other supplies necessary for treating the large number of coronavirus cases; and $25 billion is earmarked to help expand the healthcare system’s capacity for COVID-19 testing.


Keith L. Bell, Jr. is a shareholder with over 15 years of experience in Clark Partington’s banking and litigation practice groups. He focuses on commercial, construction, bankruptcy, real estate, title insurance, and probate litigation, as well as governmental affairs and administrative law. Keith can be reached at kbell@clarkpartington.com or (850) 320-6838.

About Clark Partington:

Clark Partington is the largest business focused firm in the Florida panhandle with offices in Pensacola, Destin, Grayton Beach & Tallahassee.  The firm also maintains a presence in South Alabama with an Orange Beach office.  Since 1976 Clark Partington has grown to over forty lawyers and has served the people and businesses of Florida through an innovative and collaborative approach to practicing law.  Our lawyers are consistently recognized for their service to the profession and excellence in the courtroom.  More information about the firm’s practice, its attorneys, and recognitions may be found at www.clarkpartington.com.

This publication should not be construed as legal advice.  Its applicability is dependent upon specific facts and circumstances and is provided for informational purposes only.  You should not act upon this information without seeking advice from a lawyer licensed in your own state.