CARES Act: US Government Expands CARES Act Relief Package by $484 Billion | Practical Law

CARES Act: US Government Expands CARES Act Relief Package by $484 Billion | Practical Law

On April 24, 2020, the President signed into law the Paycheck Protection Program and Health Care Enhancement Act (H.R. 266) that expanded several relief programs under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) in order to help small businesses and healthcare providers suffering economic hardship from the COVID-19 pandemic. The bill replenishes amounts available under the SBA's Payroll Protection Program (PPP) and Emergency Economic Injury Disaster Loan (EIDL) program, and provides funds for hospitals and health care providers and for expanded COVID-19 testing.

CARES Act: US Government Expands CARES Act Relief Package by $484 Billion

Practical Law Legal Update w-025-1376 (Approx. 4 pages)

CARES Act: US Government Expands CARES Act Relief Package by $484 Billion

by Practical Law Finance
Published on 27 Apr 2020 • USA (National/Federal)
On April 24, 2020, the President signed into law the Paycheck Protection Program and Health Care Enhancement Act (H.R. 266) that expanded several relief programs under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) in order to help small businesses and healthcare providers suffering economic hardship from the COVID-19 pandemic. The bill replenishes amounts available under the SBA's Payroll Protection Program (PPP) and Emergency Economic Injury Disaster Loan (EIDL) program, and provides funds for hospitals and health care providers and for expanded COVID-19 testing.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (Pub. L. No. 116-136 (H.R. 748)) was enacted to provide economic relief to individuals and businesses facing economic hardship due to the COVID-19 outbreak. Under the CARES Act, the Small Business Administration (SBA) is authorized to offer loans and loan guarantees under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL). The SBA suspended accepting new applications under these programs in mid-April when available funding ran out.
On April 24, 2020, the President signed into law the Paycheck Protection Program and Health Care Enhancement Act (H.R. 266) (Enhancement Act) that expanded several relief programs under the CARES Act, including replenishing amounts available under the PPP and EIDL programs. It also provides funds for hospitals and health care providers and for expanded COVID-19 testing.
The Enhancement Act provides for:
  • $310 billion for PPP loans:
    • $30 billion will be set aside for insured depository institutions and credit unions with consolidated assets of not less than $10 billion and less than $50 billion; and
    • $30 billion will be set aside for community financial institutions, and for insured depository institutions and credit unions with consolidated assets of less than $10 billion.
  • $10 billion for emergency EIDL grants.
  • $50 billion for EIDL loans.
  • $75 billion for hospitals and health care providers to address COVID-19 expenses and lost revenue.
  • $25 billion for expanded COVID-19 testing.
  • $2.1 billion for additional salaries and expenses for the SBA.
  • Agricultural enterprises (as defined under Section 18(b) of the Small Business Act (15 U.S.C. § 647 (b))) with less than 500 employees are now eligible for EIDL loans and emergency grants.
For more information on the CARES Act and other US government stimulus programs, see:
For more Practical Law resources on COVID-19-related topics, see: