Navigating New Stimulus Laws: Part 3 – What to Expect Next
Editor’s Note: The Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan’s (EIDL) initial appropriated funds were exhausted on April 16. On April 24, funds for both programs were replenished as a result of the passage of the Paycheck Protection Program and Health Care Enhancement Act. The SBA funding provides an additional $321 billion for the PPP, with $60 billion for community banks and smaller lenders, plus an additional $60 billion for the EIDL, to be granted to qualified entities on a first-come, first-served basis. The SBA, in consultation with the Department of the Treasury, issued additional guidance and rules to address questions concerning the implementation of the PPP.
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While associations learn everything they can about new laws passed in March and meant to provide swift economic relief, they should also be preparing for more to come, as Congress is already looking at next steps in its legislative response to COVID-19.
What Associations Should Expect Next from Congress
Leaders in Congress have already suggested adding funds to the newly established programs created by the triage of laws passed in March before tackling a new relief bill.
Some discussion has occurred around adding billions of more dollars to the Paycheck Protection Program (PPP) by amending the CARES Act; however, gridlock between the House and Senate leadership in early April has so far impeded legislative action. There is also talk of replenishing funds in the Small Business Administration’s Economic Injury Disaster Loan (EIDL) program.
Congress is set to reconvene on May 4, a delay from their original planned return in late April due to the health risks associated with travel and continued social distancing guidelines. However, lawmakers may strike a deal to add more funding to the programs in the interim. Congress also intends to draft the “CARES 2 Act” as part of a much broader aid package expected to top $1 trillion to further provide relief to individuals and entities most impacted by COVID-19 in the coming weeks.
According to asaecenter.org, ASAE and representatives from more than 4,200 organizations across the country sent a letter to Congress and the Trump administration urging policymakers to include professional associations in any possible upcoming aid packages to help combat financial loss due to COVID-19.
ASAE has called for the following to be included in future legislation to assist associations:
- $25 billion in aid for associations experiencing financial losses from canceled meetings and events,
- association access to small business interruption loans to prevent layoffs and continue paying employees,
- and the creation of a pandemic risk insurance program to provide a federal backstop for prospective insurance claims related to a pandemic or epidemic.
Disclaimer: The information included in this article is only for informational purposes and is only an interpretation made based on available information that is subject to change. The information should not be construed as legal or tax advice, nor does Naylor Government Affairs provide legal or tax advice in any context. Any action taken related to these matters should only be done in conjunction with the appropriate legal and/or other professional advice.
