On Friday, April 24, 2020, President Trump signed into law the Paycheck Protection Program and Health Care Enhancement Act (PPP Enhancement Act), one of a series of coronavirus-rated relief bills. The law provides supplemental funding for the Paycheck Protection Program and Economic Injury Disaster Loans, originally authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, as well as billions in funding for hospitals and coronavirus testing.

Under the CARES Act, Congress initially allocated $349 billion in forgivable loans for small businesses through the Paycheck Protection Program (PPP), which was replenished with an additional $310 billion in funding under the PPP Enhancement Act. Under the PPP, loans of up to $10 million used to cover certain eligible expenses (e.g., payroll, rent, utilities) may be forgiven. PPP loans have favorable terms, including (1) no collateral or personal guarantees are required; (2) the loans mature in two years; (3) interest rate is 1%; and (4) the loans may be fully forgiven.

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