PPP and Health Care Enhancement Act Update

Dear Members,

The following update on the Paycheck Protection Program and Health Care Enhancement Act was received from Michele Cota,Special Assistant for Policy & Projects,
Office of U.S. Senator Jeanne Shaheen, Michele_Cota@shaheen.senate.gov

Sharon Wayman
Executive Director
New Hampshire Home Builders Association
swayman@nhhba.com


On Tuesday, April 21st, the Senate passed the Paycheck Protection Program and Health Care Enhancement Act legislation that will provide $370 billion to replenish the Paycheck Protection Plan (PPP) and Economic Injury Disaster Loan (EIDL) programs. The House is expected to take up and pass this bill tomorrow. See the Senator’s press release below.

The SBA is still working through a backlog of applications for loans and grants through the Economic Injury Disaster Loan program and they just confirmed that they will retain applicants’ information in a queue; however, it doesn’t hurt to reapply. Unfortunately we still do not have a mechanism to check your status for you. The only way to check status is to call 1-800-659-2955.

If your PPP application was not granted before the funds were depleted, please be in contact with your lender to process your application as soon as possible. There will likely be another rush to secure funds following passage of this second wave of funding and it is better to not wait. Each lender manages this program a little differently and there are community lenders in New Hampshire who will work with you regardless of whether you have an existing account with them. This latest package has a set-aside just for that. You can work with a Small Business Development Center advisor for help getting matched with a lender that is best for your situation.

Here are couple key takeaways from the Senate package:

  • $60 Billion Set-aside for Smaller Lenders: A $60 billion set-aside within PPP for small and mid-sized banks and credit unions as well as community-based lending institutions. Most importantly, this set-aside funding will help ensure that unbanked and underserved businesses can get access to PPP. This includes minority-owned businesses, rural businesses, small mom and pop businesses, and smaller nonprofits that too often have been pushed to the back of the line in the program.
  • Additional $50B for the EIDL program: $50 billion in EIDL program subsidy that will support over $350 billion in new disaster loans directly from SBA; and
  • Additional $10B in EIDL Grants: $10 billion for the Emergency Economic Injury Disaster Grant program to provide up to $10,000 as a cash advance to provide immediate relief for operating expenses for small businesses and nonprofits that apply for an EIDL. The cash advance does not have to be paid back.
  • The agreement adds agricultural enterprises under 500 employees as an eligible recipient for grants of up to $10,000 and low-interest loans of up to $2 million through the SBA’s Economic Injury Disaster Loan Program. Agricultural businesses can find additional relief through the NH FSA.
  • $2.1 billion for the U.S. SBA in new funding is provided for staff and other expenses to support the SBA’s programs assisting small businesses impacted by COVID-19.

Many businesses have raised concerns over access to PPE, sanitation supplies and health screening tools for their current operations or for when they are allowed to begin reopening. The decision on how to reopen the state so we can all begin to rebuild our livelihoods is one that will come from the Governor/State. The State of New Hampshire has formed a task force comprised of leaders from various sectors responsible for developing a plan to reopen our state in a way that protects public health.  We encourage you to reach out to members of this task force with your thoughts/questions/concerns on the State’s reopening plans. The risk of this virus resurging is very real so it is critical that there is sufficient guidance, testing, tracking, reporting and safety supplies. This is a concern that Senator Shaheen shares and she is working to ensure NH has adequate testing so we can be sure it is safe for the state to reopen.

Here are some resources to help you stay connected:
 www.nheconomy.com/covid19
The BIA has a great lineup of webinars: today is a discussion called “What’s Happening to our Economy? At 1p, Governor Sununu will address businesses tomorrow, Senator Shaheen will present on the Monday webinar also at 1pm.
The Small Business Development Center should be able to assist you with finding a new lender if you choose. They are able to help you to develop a strategic plan for surviving this pandemic at no cost to you and for ramping back up again after so that you can become profitable.
NH Employment Security is now processing independent business owner unemployment claims so those who were previously denied are now being approved. You can call 603-271-7700 to get this started. They’ve redirected state employees and enlisted the help of the Guard to keep up with the unprecedented demand. They have started to include the $600 lift on claims this week. It is retroactive to the 4th and will continue through the end of July.
FAQs about FMLA: https://www.dol.gov/agencies/whd/pandemic/ffcra-questions

IRS Guidance for Businesses NOL: https://www.irs.gov/newsroom/irs-provides-guidance-under-the-cares-act-to-taxpayers-with-net-operating-losses
Issues with the IRS and tax returns and stimulus deposits: Unfortunately, we do not have a way to look into specific cases at this time. You are encouraged to follow the guidance provided on www.irs.gov and to contact the Taxpayer Advocate Services. There is an office in Portsmouth P: 603-570-0605.
How to sell PPE and equipment to the Federal Government: you will need to register on www.SAM.gov and then submit a price quote under the COVID-19 PPE and Medical Supplies Request for Quotation. Full details can be found in the solicitation (Notice ID 70FA2020R00000011). For FEMA specifically, email the Department of Homeland Security (DHS) Procurement Action Innovative Response Team (PAIR) team at covid19pair@hq.dhs.gov. The State of NH Procurement Technical Assistance Center is the best resource to assist you through this process.


FOR IMMEDIATE RELEASE
April 21, 2020
CONTACT: 202-224-8028

Shaheen Statement on Bipartisan Agreement to Replenish Small Business Assistance Programs, Support Hospitals & Testing

**SHAHEEN: “Importantly, this agreement recognizes small businesses need help and if we’re going to reopen our economy, we need more testing. And as hospitals in New Hampshire furlough workers, delivering resources to health care providers is absolutely vital to public health and safety”**

**Negotiations yielded significant additional support for small businesses, a set-aside for smaller lending institutions to broaden access to the program, funding for health care providers and nationwide testing efforts**

(Washington, DC)—U.S. Senator Jeanne Shaheen (D-NH), a lead negotiator of the small business assistance provisions in the Coronavirus Aid, Relief and Economic Security (CARES) Act, issued the following statement after congressional leadership and the Trump administration reached an agreement on further legislation to respond to the COVID-19 crisis:

“Importantly, this agreement recognizes small businesses need help and if we’re going to reopen our economy, we need more testing. And as hospitals in New Hampshire furlough workers, delivering resources to health care providers is absolutely vital to public health and safety. Immediate action is needed on this agreement and continued oversight is critical to make sure help is getting to the people who need it,” said Shaheen.

“Our state and local governments also need more help as they work to provide vital services as tax revenues keep dropping. Congress must pass this agreement and get to work on providing help to meet the many other needs of our communities. And President Trump must follow through on his commitment to support state and local funding in further relief legislation.”

During negotiations, Senator Shaheen was adamant that the Paycheck Protection Program (PPP) and the Economic Injury Disaster Program (EIDL)—both of which had run out of funding—be replenished. She also called for changes that would allow for better access for smaller businesses, particularly businesses that don’t have a relationship with a big bank or accountant and lawyer services, to access the program, as well as additional funding for health care providers. Senator Shaheen continues to call for other changes to the PPP program to help New Hampshire’s small businesses, including extending key deadlines, and is urging that these fixes be included in further COVID-19 response legislation.

Today’s agreement provides $470 billion for small businesses, hospitals and nationwide testing efforts which includes:

  • $250 billion for PPP.

In addition, negotiations over the last week yielded:

  • To aid access to the program for smaller businesses, particularly businesses that don’t have relationships with big banks, this agreement has additional funding of $60 billion through PPP for smaller lending institutions to administer the program.

    • This includes $30 billion for institutions that have under $50 billion in assets and $30 billion for institutions with under $10 billion in assets.
  • $50 billion for the Economic Injury Disaster Loan (EIDL) program, which will allow the Small Business Administration to approve approximately $350 billion in loans.
  • An additional $10 billion for EIDL grants.

Hospitals and Testing:

  • $75 billion for grants for health care providers to help provide more liquidity for hospitals, physicians and other providers who are struggling with lost revenue and added expenses due to COVID-19.

    • This funding builds on the $100 billion in health care provider grants already provided under the CARES Act.
    • New Hampshire hospitals and providers have received $164.5 million so far through the first $30 billion installment of these grants.
  • $25 billion for a nationwide effort to ramp up testing capacity.

    • This includes $11 billion for states and localities to scale up lab capacities, trace contacts and purchase diagnostic tests.
    • Also included are $1 billion for development, manufacturing and production of diagnostic and serological tests, $1.8 billion for National Institutes of Health efforts to develop and validate new testing methods and $1 billion to the Centers for Disease Control and Prevention to ramp up lab capacity, contact tracing and surveillance.

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