We write to provide the latest updates on the federal and state responses to COVID-19.
This afternoon, the House of Representatives will vote on the Paycheck Protection Program and Health Care Enhancement Act, which the Senate passed on Tuesday and includes $310 billion for PPP loans, $10 billion for EIDL grants, and $50 billion for EIDL loans. A summary of the legislation provided by the House Small Business Committee, of which Rep. Houlahan is a member, is attached to this email.
Rep. Houlahan has aggressively advocated for a PPP set-aside for small and community banks within these new funds. We are pleased to see $30 billion in this package dedicated to small banks and credit unions, including minority depository institutions, as well as another $30 billion for medium-sized banks and credit unions, including Community Development Financial Institutions (CDFIs). These set-asides will help to ensure PPP loans make it into the hands of those for whom this program was designed—the smallest of businesses upon which our economy is built.
This legislation also expands eligibility for EIDL to agricultural producers, an issue about which we’ve heard from many in our community. Rep. Houlahan has also called for the extension of PPP eligibility to other types of 501(c) non-profits. You can read her letter to House leadership on this topic here. Although many of these organizations are still not eligible for EIDL or PPP loans, Rep. Houlahan will continue to press congressional leadership on this issue and advocate on behalf of the many non-profit organizations in our community.
Rep. Houlahan looks forward to voting in favor of this important small business relief package today, and we expect that the legislation will be signed into law soon after. We are hopeful that the release of funds will be in short order.
A few notes on the status of EIDL and PPP loan applications given the recent lapse in funding:
The Pennsylvania Department of Community and Economic Development (DCED) also announced yesterday that that the Pennsylvania Industrial Development Authority (PIDA), Pennsylvania Minority Business Development Authority (PMBDA), and Commonwealth Financing Authority (CFA) are deferring loans and that the maturity dates and amortization schedules of all applicable loans are extended by three additional calendar months. You can find additional details here.
Please let us know if you have any questions. As always, please continue to check our website for updates and send questions to our various COVID-19 email addresses:
The Office of U.S. Representative Chrissy Houlahan
Pennsylvania 6th Congressional District