Breaking … Congress has reached a deal on the PPP 2.0 funding, but it remains subject to approval by both houses, which must be obtained either by unanimous consent, which can be done remotely, or via a floor vote, which would require the members to travel to DC.
**UPDATE 4/21/20 5:15 pm: The Senate approved the bill. The House is scheduled to vote Thursday if possible.
Our DC policy team (and Axios) have obtained the text of the amendment and the summary from congress. Here’s a quick hit on the major points:
- PPP Upsize: PPP is upsized from $349B to $659B (i.e., by $310B), with an additional $11.3B set aside for expenses (presumably including lender fees).
- Smaller Lender Set Asides: A total of $60B is set aside in two equal $30B tranches for PPP loans to be made by:
- Small banks and credit unions who have assets of $10B to $50B (that’s bank size, not borrower size); and
- Smaller banks and credit unions who have assets of under $10B and “community financial institutions”, which includes minority depositary institutions.
Note: it appears that this approach was in lieu of putting any stratified limits on borrower or loan size).
- Hospitals; Testing: The amendment creates two Public Health and Social Services Emergency Funds (in addition to the above amounts) of:
- $75B for hospitals and
- $25B for testing.
Each of these two funds is created via a single paragraph (each) spanning 4+ pages with at least a dozen provisos, so stay tuned for more details from our healthcare and policy teams on those.
The Senate vote is scheduled for today and if we get approval there, the House is set to try to approve it “later this week,” perhaps as early as tomorrow. It’s not yet clear when SBA would reopen the E-Tran portal to allow lenders to begin submitting applications. We will report back when we know more.