Clay Says Paycheck Protection Program and Healthcare Enhancement Act Will Focus $60 Billion in Forgivable Loans for Smaller, Unbanked Businesses through Community-Based Lenders

Press Release

Congressman Wm. Lacy Clay (D) Missouri, Chairman of the House Financial Services Subcommittee on Housing, Community Development and Insurance, praised passage of the Paycheck Protection Program and Healthcare Enhancement Act which was approved today in the U.S. House by an overwhelming bipartisan vote.

"Today's action will immediately target $60 billion in forgivable SBA loans to smaller, cash-based and frequently unbanked businesses in urban areas who were largely shut out of the first round of emergency loans by including smaller, community-based lenders in the program," said the Congressman. "I'm especially pleased that the $60 billion set aside out of the $370 billion small business lending package will be distributed through Community Development Financial Institutions, Minority Depository Institutions, community banks, credit unions, certified development companies and micro lenders. These smaller financial institutions function at the neighborhood level in underserved communities and they have the ability to process the loans and get minority-owned small businesses the help they need to keep their doors open during this pandemic."

The Congressman continued, "This interim emergency funding package also provides hospitals and community healthcare centers with $75 billion to purchase badly needed personal protective equipment to keep our healthcare heroes safe and it also provides $25 billion to expand critical COVID-19 testing which is essential to restoring both public health and our economy. This bill is a positive step forward, but Congress still has much work remaining to fully address the terrible damage that this pandemic has inflicted on working families, small businesses, and state & local governments."

Highlights of the Paycheck Protection Program and Healthcare Enhancement Act include:

For small businesses: Strengthens the Paycheck Protection Program with $310 billion in additional funding, with $30 billion reserved for community-based lenders, small banks and credit unions and $30 billion for medium-sized banks and credit unions. Expands small business support beyond PPP by securing $50 billion for SBA disaster lending, translating into more than $350 billion in loans, and $10 billion in SBA disaster grants.

For hospitals and health care workers: Provides $75 billion to the healthcare frontlines, including Personal Protective Equipment. The Administration has also agreed to key improvements to be made in CARES 2, including significantly lowering the interest rate on advance payments, lengthening the repayment schedule and distributing payments from general revenues not the Hospital Insurance Fund.

For all Americans: Provides $25 billion for testing, which is the key to reopening the economy and resuming our lives. The Administration has agreed to a national strategic testing policy that will focus on increasing domestic testing capacity including testing supplies.

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