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Paycheck Protection Program Increase Act

Apr 21, 2020

The President signed the Paycheck Protection Program Increase Act of 2020 (informally called CARES Act 1.5) in late April of 2020.

Our Reaction

The PPP Increase Act will provide needed funding to expand testing for COVID-19, research to find a vaccine, and support for U.S. hospitals as well as community and rural health centers. It also increases funding for existing SBA loan programs to ensure nonprofits and small businesses continue to receive assistance.

This Act takes an important step toward helping nonprofits recover from the impacts of COVID-19. We believe Congress should take additional steps to support the capacity of nonprofits to meet the critical needs of communities throughout the United States. This should include the following:

  • Dedicated loan funding for the nonprofit sector;
  • Expanding the tax incentive for donors to give in 2020, whether they itemize or not;
  • Holding nonprofits harmless for unemployment claims related to COVID-19, including coverage of claims by self-insured nonprofits;'
  • Ensuring nonprofits with business interruption insurance can still obtain relief if their plans do not cover pandemics; and 
  • Increasing transparency about disbursement of SBA loan funds to nonprofits 

You can help make these asks a reality by contacting your members of Congress on our action page:

Support Nonprofits in Updates to CARES Act

Summary of the Act*

The act provides a total of $484 billion in additional federal funding as follows:

Paycheck Protection Program (administered by the SBA) - $310 billion

  • Smaller lender earmarks - $60 billion
  • Insured Depository Institutions and Credit Unions with assets between $10 billion and $50 billion - $30 billion
    • Includes Insured Depository Institutions, Credit Unions, and Community Financial Institutions
  • Community Financial Institutions, Small Insured Depository Institutions, and Credit Unions with assets less than $10 billion - $30 billion
    • Includes minority depository institutions, certified development companies, microloan intermediaries, and State or Federal Credit Unions.

Economic Injury Disaster Loan Program (administered by the SBA) - $50 billion

  • Economic Injury Disaster Loan Emergency Grants (administered by the SBA) - $10 billion
  • Agricultural enterprises with fewer than 500 employees are eligible for EIDL programs

Small Business Administration agency funding - $62.1 billion

  • Disaster Loans Program Account - $50 billion
  • Emergency EIDL Grants- $10 billion
  • Salaries and expenses- $2.1 billion

Department of Health and Human Services - $100 billion

  • Reimbursements for hospitals and health care providers for COVID-19 expenses and lost revenue - $75 billion
  • COVID-19 testing capacity - $25 billion
    • State, local, territorial, tribal, and employer funding for testing - $11 billion
      • Requires plans on how resources will be used for testing and easing COVID-19 community mitigation policies
    • State funding based on relative number of COVID-19 cases - $4.25 billion
    • Tribe, tribal organizations, and urban Indian health organizations- $750 million
    • Uninsured testing - $1 billion
  • Centers for Disease Control funding - $1 billion
    • For surveillance, epidemiology, laboratory capacity expansion, analytics infrastructure modernization, etc.
  • National Institutes of Health - $1.8 billion
    • For testing, technology, research, and partnerships 
  • Biomedical Advanced Research and Development Authority - $1 billion
    • For R&D, production, and purchase of COVID-19 tests or related supplies.
  • Food and Drug Administration - $22 million 
    • For diagnosis, tests, and related administrative activities.
  • Community Health Centers and rural health clinics - $825 million
    • HHS Office of Inspector General oversight- $6 million
  • Requires strategic plan related to providing assistance

*This summary is from the Section by Section analysis of the bill posted on Sen. Marco Rubio's website and information from the National Council of Nonprofits.