A $484 billion COVID-19 relief bill that will replenish the Paycheck Protection Program with an additional $320 billion and make farms eligible for a separate disaster loan program for small businesses was signed into law Friday.
The Small Business Administration (SBA) and Treasury Department plan to release a press release on Friday announcing the details for reopening the PPP application portal. Chairman of the Senate Small Business Committee Marco Rubio (R-Fla.) announced that the application portal will reopen on Monday morning. The Treasury Department also released an updated FAQ; however, the new document does not address the sole proprietor issues concerning Schedule F.
This bill expands farmer and rancher eligibility for the SBA Economic Injury Disaster Loan (EIDL) program, provides additional funding for the Paycheck Protection Program (PPP) and includes necessary funding for hospitals and rural health clinics. The bill includes the following:
- Economic Injury Disaster Loans: Extends eligibility to agricultural enterprises, as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)) and have 500 or fewer employees to participate in the EIDL.
- The definition mentioned above is: (b) As used in this Act, the term ‘‘agricultural enterprises’’ means those small business concerns engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural-related industries.
- Provides $60 billion for the EIDL program.
- Paycheck Protection Program: Provides $320 billion for the PPP. While AFBF supports this funding, we are asking Congress to include the corrections that AFBF shared to improve the program’s assistance for agricultural producers and support eligibility for tax-exempt agricultural organizations that assist farmers and ranchers in the next round of legislation.
- Small Lender Set-Aside: The bill creates a $60 billion set-aside for Insured Depository Institutions, Credit Unions, and Community Financial Institutions for the PPP. However, the set-aside does not include the Farm Credit System.
- Health Care: The bill provides $100 billion for hospitals and for COVID-19 testing. A summary of the health care provisions is attached.
- $75 billion for hospitals and healthcare providers for COVID-19 related expenses and lost revenue.
- $25 billion to expand capacity for COVID-19 tests.
- $600 million of funding is earmarked for Community Health Centers and $225 million for rural health clinics.