The House today approved Senate-passed legislation (H.R. 266) that would replenish funding for the Paycheck Protection Program (PPP), and boost funding for hospitals and additional coronavirus testing. No tax provisions are included. The Paycheck Protection Program and Health Care Enhancement Act passed on a 388-5 vote. It now goes to the president for his signature.

The Congressional Budget Office (CBO) briefly summarized the bill's funding provisions in its cost estimate for the bill, which appropriates about $484 billion in new federal spending. The CBO explains:

Division A would increase the subsidy appropriation for the Small Business Administration's (SBA's) Paycheck Protection Program (PPP) by $321 billion in 2020. The legislation would require the SBA to use at least $60 billion of the PPP subsidy to guarantee loans made by smaller depository institutions, credit unions, and community financial institutions. It also would increase the authorization for Economic Injury Disaster Loans (EIDLs) by $10 billion....

Division B would provide $75 billion in supplemental appropriations to reimburse health care providers for expenses or lost revenues that are attributable to the novel coronavirus. It also would provide $25 billion to develop, purchase, administer, process, and analyze tests for COVID-19 (the disease caused by the coronavirus). In addition, it would provide $62 billion for salaries and expenses and for loan programs of the Small Business Administration....

The text of the bill is posted here.

In a statement posted on Twitter, the president said he will sign the bill and then begin work on forthcoming legislation to assist "State/Local Governments for lost revenues from COVID 19, much needed Infrastructure Investments for Bridges, Tunnels, Broadband, Tax Incentives for Restaurants, Entertainment, Sports, and Payroll Tax Cuts to increase Economic Growth."

The House and Senate are not scheduled to return to legislative work until May 4, 2020.

In a related move, the Treasury Department today updated its FAQs on the PPP, which provides forgivable loans for small businesses adversely affected by the coronavirus outbreak to cover payroll and certain other expenses. The newly added FAQ (Question 31) is directed at potential PPP applications filed by larger companies. It explains:

Question: Do businesses owned by large companies with adequate sources of liquidity to support the business's ongoing operations qualify for a PPP loan?

Answer: In addition to reviewing applicable affiliation rules to determine eligibility, all borrowers must assess their economic need for a PPP loan under the standard established by the CARES Act and the PPP regulations at the time of the loan application. Although the CARES Act suspends the ordinary requirement that borrowers must be unable to obtain credit elsewhere (as defined in section 3(h) of the Small Business Act), borrowers still must certify in good faith that their PPP loan request is necessary. Specifically, before submitting a PPP application, all borrowers should review carefully the required certification that "[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant." Borrowers must make this certification in good faith, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business. For example, it is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification.

Lenders may rely on a borrower's certification regarding the necessity of the loan request. Any borrower that applied for a PPP loan prior to the issuance of this guidance and repays the loan in full by May 7, 2020 will be deemed by SBA to have made the required certification in good faith.

The updated PPP FAQs are posted here.

Miller & Chevalier Coronavirus Task Force
The outbreak of COVID-19 is creating significant business and legal challenges for companies throughout the world. In response to client demand, the firm has formed an interdisciplinary task force to help businesses navigate these issues.

COVID-19 Resource Library
We also maintain a resource library of legislative responses and regulatory guidance related to COVID-19.

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