Please ensure Javascript is enabled for purposes of website accessibility

Senate Passes $484 Billion Relief Package for Small Businesses

By Dave Kovaleski - Apr 22, 2020 at 5:27PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The package includes money for small lenders and hospitals for testing.

The U.S. Senate approved a $484 billion relief package for small businesses and hospitals on April 21. The stimulus is targeted at businesses that did not receive money from the initial $349 billion set aside in the Paycheck Protection Program (PPP) that ran out after two weeks.

This new relief package includes about $320 billion for loans through the PPP. The loans would be "fee-free" up to $10 million for businesses and non-profits. Also, employers who keep their payroll throughout the coronavirus emergency may be forgiven payroll, rent, utilities, and mortgage interest payments for up to eight weeks.

A key difference with this package is that $60 billion is set aside for small and medium sized banks to lend out. That carve out wasn't part of the last package. Of that $60 billion, $30 billion will be distributed to banks with less than $10 billion in assets, and $30 billion will be allocated to those with between $10 billion and $50 billion in assets.

Also, this package includes $60 billion in disaster loans and grants through the Disaster Loans Program Account. Agricultural companies will be eligible for these loans and grants.

The word Stimulus Package written in large letters, all capitalized.

Image source: Getty Images.

Finally, the package sets aside $100 billion for hospitals -- another feature that was not included in the first installment. Of that amount, $75 billion will provide financial support to hospitals to pay for expenses and lost revenue as they fight the COVID-19 pandemic.

Also, an additional $25 billion will specifically go to help hospitals and healthcare centers buy testing equipment and conduct COVID-19 testing. "We recognize that accurate and available testing will be key to getting our businesses back online and our economy running," Sen. Lisa Murkowski (R-AK) said.

The House of Representatives is expected to pass this package on Thursday, April 23.

The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/19/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.