COVID-19 Update: Congress Reaches Deal on Coronavirus Relief Bill and President Trump is Expected to Sign

On April 21, 2020, Lawmakers and the White House reached a bipartisan agreement on a nearly half-trillion-dollar coronavirus relief bill. This deal is a new round of coronavirus aid, which would deliver $484 billion to small businesses and hospitals, and for testing. The legislation includes money for small businesses, $75 billion for hospitals, and $25 billion for coronavirus testing; however, it does not include additional funding for state and local governments. Democrats and governors across the country had pushed for the additional funding, but Republicans opposed it.

The bill includes more than $320 billion for the Paycheck Protection Program, which was created by the coronavirus stimulus package passed late last month and provides forgivable loans to small businesses that keep their employees on payroll. About $60 billion of that additional funding would be set aside for “underbanked” business, a priority for Democrats, who were concerned that businesses in rural and minority areas were having trouble accessing the loans. It also replenishes the empty small business fund set up by the last coronavirus stimulus bill for companies with fewer than 500 employees to keep afloat and maintain their payrolls. The fund ran out of money last week, its $349 billion almost instantly committed to existing bank customers given the first opportunity at applying.

The deal marks the fourth major bill for pandemic relief. As of this writing, the Senate could approve the bill this afternoon, if all 100 senators agree; the House is expected to approve it later this week. The interim coronavirus legislation could be on President Trump’s desk by the end of the week and Trump suggested that if the bill is passed, he will sign it into law.

Tarlow is here to provide coronavirus loan support and capital assistance and guide you through the Paycheck Protection Program (PPP) loan forgiveness process. To get started:

We are closely monitoring tax-related legislation and regulations and will continue to update you by sending communications about relevant news and changing guidelines. If you have any questions, please contact your Tarlow advisor.