Senate Passes Bill to Provide Additional Funding for Small Businesses, Hospitals, and Testing Capacity

Strategic Insights -

Senate Democrats led by Senator Sherrod Brown supported the Senate bill to provide additional funding for small businesses, hospitals, and increased testing capacity. The bill was passed by unanimous consent and is expected to pass the House of Representatives this week. The bill provides $470 billion, including funding for the Small Business Administration's (SBA) Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program, and Emergency Economic Injury Grant program, as well as $75 billion in emergency money for the healthcare system and $25 billion to increase testing and contact tracing capabilities.

Key Takeaways:

  • The bill provides $310 billion for the SBA's Paycheck Protection Program (PPP) to support small businesses, including $60 billion for smaller lenders such as small banks and credit unions.
  • The bill allocates $50 billion for the SBA's Economic Injury Disaster Loan (EIDL) program, which will allow approximately $300 billion in loans to small businesses.
  • The bill includes $10 billion for the SBA's Emergency Economic Injury Grant program.
  • The bill provides $75 billion in emergency money for the healthcare system, including hospitals.
  • The bill allocates $25 billion for increased testing and contact tracing capabilities.
  • Senator Brown secured a commitment from the White House that a future stimulus package will allow state and local governments to replace lost revenue with funding from the CARES Act.
  • The bill includes provisions for Pandemic Premium Pay, or hazard pay, for essential workers, with a premium pay increase of up to $25,000 and a $15,000 essential worker recruitment incentive.
  • Brown also vowed to continue fighting for additional housing protections that would better protect consumers and allow families to stay in their homes.

Statistics:

  • $470 billion in total funding
  • $310 billion for the Paycheck Protection Program (PPP) for small businesses
  • $50 billion for the Economic Injury Disaster Loan (EIDL) program for small businesses
  • $10 billion for the Emergency Economic Injury Grant program
  • $75 billion in emergency money for the healthcare system
  • $25 billion for increased testing and contact tracing capabilities
  • Up to $25,000 in Pandemic Premium Pay for essential workers
  • $15,000 essential worker recruitment incentive

Sources:

  • [1] A news release issued by Sen. Sherrod Brown (D-OH) on April 23.
  • [2] A letter Brown wrote to Senate Leaders on April 23, calling for swift action to meet the growing challenges facing Ohio's communities.
  • [3] The White House's commitment to allow state and local governments to replace lost revenue with funding from the CARES Act.