The U.S. House of Representatives passed a $484 billion stimulus bill yesterday after the Senate passed it earlier this week. The president is expected to sign it today.
The package refills two small business relief programs which have been used by produce companies and is supported by the industry.
The Produce Marketing Association BB #:153708 said these are the takeaways:
· $320 billion is allocated to replenish the Small Business Administration’s Paycheck Protection Program, created through the CARES Act to help small businesses keep workers on payroll. This will include $310 billion for new loans and $10 billion for administrative costs for lenders. This is in addition to the $350 billion allocated a few weeks ago.
· These PPP loans, which can be used for payroll expenses, rent, mortgage or utilities, are forgivable for small businesses that keep employees on the payroll for 8 weeks.
· The bill sets aside $60 billion of the $310 billion in PPP loan funds to banks, credit unions and smaller institutions that serve “under-banked” small businesses.
· The bill sets aside $60 billion in additional funding to the Economic Injury Disaster Loan (EIDL) program and clarifies that farmers and ranchers are eligible to receive these loans.
The bill passed the House by a vote of 388-5 in its first roll call vote since the pandemic began. Members maintained social distance and wore facemasks in the House Chamber.
The Paycheck Protection Program’s original $350 billion was quickly depleted, so many lawmakers made this latest stimulus package a high priority.