October 15, 2021

Volume XI, Number 288

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COVID-19: Congress Approves Interim Emergency Relief Package

On Friday, April 24, 2020, President Trump signed another emergency relief package (CARES Act II) totaling close to $500 billion, the bulk of which will go toward replenishing the Paycheck Protection Program (PPP). Congress created the PPP as part of the first CARES Act (Cares Act I), but the original funds totaling $349 billion have already run out. The new PPP funds include parameters not found in the original bill, which should give smaller businesses a better chance at receiving funds. The CARES Act II also provides additional funds for the Economic Injury Disaster Loans (EIDL) program, as well as for hospitals and testing. The CARES Act II, however, does not provide any relief to state and local governments, which have been hit hard as a result of the coronavirus.  The following is a summary of the CARES Act II.

PAYCHECK PROTECTION PROGRAM

The CARES Act II provides an additional $310 billion to replenish the PPP, with at least $60 billion set aside to target small businesses that bank with small, community, and midsized lenders. In response to concerns that small businesses that use small and community banks were not supported in the initial funding round, the interim relief pack has reserved no less than $30 billion for community-based lenders, small banks, and credit unions (assets less than $10 billion), and no less than $30 billion for midsized banks and credit unions (assets between $10 billion and $50 billion). The remaining $250 billion is unrestricted.

ECONOMIC INJURY DISASTER LOANS

The interim relief package provides an additional $60 billion to the EIDL program: $50 billion for EIDL loans and $10 billion for EIDL advance grants. Under the EIDL program, small businesses are eligible for up to $2 million in loans and $10,000 in advance grants. However, due to the overwhelming number of applications in the initial funding round, many businesses only received up to $15,000 in loans and $1,000 in advance grants. 

Agricultural enterprises are now eligible to receive funds under the EIDL program.

PUBLIC HEALTH

The interim relief package provides $75 billion for hospitals and $25 billion to expand coronavirus testing.

©2021 Pierce Atwood LLP. All rights reserved.National Law Review, Volume X, Number 115
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Christopher E. Howard Corporate Finance Attorney Pierce Atwood Law Firm Portland Maine
Partner

Chris Howard has a unique combination of technical legal skills and hands-on business and finance experience, enabling him to integrate these disciplines into strategies that match client objectives and provide clients with a competitive advantage. His forte is in managing complex commercial transactions and development projects in time-sensitive environments, and in accessing all sectors of the capital markets.

Chris' practice has four areas of focus:

  • Corporate finance and transactional representation...

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Robert Ravenelle, Pierce Atwood Law Firm, Portland, Tax Law Attorney
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As head of Pierce Atwood's Federal Income Tax practice, Rob Ravenelle has extensive experience in the planning, negotiation and tax structuring for mergers and acquisitions. He works closely with members of our Business Practice Group to ensure that clients obtain the most economic and tax efficient transaction results possible. Rob's prior experience practicing as a Certified Public Accountant brings unique skills that enhance the value of our services in deal transactions, from mergers to renewable energy tax equity financing to succession planning of closely held...

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Katherine Rand, Pierce Atwood, Employment lawyer
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Having worked in human resources and management in the private sector, Katy Rand brings hands-on experience to her practice.  Her client work primarily involves employment law, with a focus on discrimination, harassment, retaliation, and wage / hour issues.   Katy helps employers avoid litigation, counseling them on compliance and employee relations issues and, where appropriate, negotiating early resolution of disputes.  She also has an active litigation practice, routinely advocating on behalf of employers in state and federal court, as well as before administrative agencies such as the ...

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Andrea K. Suter Finance and Corporate Attorney Pierce Atwood Portland, ME
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Andrea Suter represents start-up, family owned, and established companies in a wide range of businesses and industries. Her practice focuses on commercial transactions and contracts, mergers and acquisitions, finance and general corporate law matters.

Prior to joining Pierce Atwood, Andrea worked at well-respected law firms in California’s Bay Area and New York where she gained extensive experience advising clients on growing and realizing value through strategic mergers and acquisitions; efficiently raising capital through private placements, venture round financing and traditional...

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