House Passes PPP Extension

On July 1, The U.S. House of Representatives unanimously passed a bill to extend the deadline to apply for forgivable small business loans through the Paycheck Protection Program. The legislation was previously passed by the Senate and President Trump is expected to sign the bill into law. The bill extends the deadline to request Paycheck Protection Program loans to August 8 from June 30. The U.S. Small Business Administration (SBA), which oversees the program with the Treasury Department, stopped accepting loan applications at midnight Tuesday. The extension is intended to provide more time for small businesses to apply for the approximately $129 billion in PPP funding remaining. The program provides forgivable loans that small businesses and other qualifying entities can use to cover payroll and other select costs. The AAA will continue to press the Congress and federal agencies for help to ensure ambulance service organizations and our paramedics and EMTs serving on the front lines of the COVID-19 pandemic have the necessary resources and financial assistance to serve their communities....

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Senate Passes PPP Flexibility Act

On June 3, the U.S. Senate passed on voice vote the Paycheck Protection Program Flexibility Act of 2020. The legislation was passed by the House on May 28. The President is expected shortly to sign the bill into law. The Paycheck Protection Program Flexibility Act (H.R. 7010) provides small businesses with more flexibility in how the Paycheck Protection Program (PPP) funds established under the CARES Act can be spent. Under this new bill, borrowers who furloughed or laid-off workers will not be subject to a loan forgiveness reduction due to reduced employee count as long as they restore their pre-COVID employment by the new deadline of December 31, 2020. Businesses will also have 24 weeks instead of just 8 weeks to spend the funds. This legislation lowers the minimum percentage of PPP loans that must be allocated towards payroll from 75% to 60% and clarifies a borrower does not have to begin repaying a loan until the SBA determines whether or not the business is eligible for loan forgiveness. The PPP Flexibility Act also lifts the ban on borrowers whose loans were partially or completely forgiven from deferring payment of payroll taxes. The payroll tax deferral is now open to...

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Paycheck Protection Program Funding Update

The Department of Treasury has announced that the $350 billion appropriated under the CARES Act for the Paycheck Protection Program has been exhausted. However, Congressional leaders are currently negotiating an economic stimulus package to act as a bridge between the CARES Act and the next comprehensive package stimulus package. A core provision of the bridge package is an allocation of an additional $250 billion for the Paycheck Protection Program. If your operation is in the process or plans to apply for a loan under the Paycheck Protection Program, you should move forward with your efforts. The AAA is advocating that the bridge package or next comprehensive package include more funding for ambulance services.

COVID-19 Aid Programs Comparison

The recent Coronavirus Aid, Relief, and Economic Security Act (CARES Act) brings much-needed financial assistance to ambulance services and their employees. The chart below is designed to assist EMS leaders in determining which programs are best for you. Download the Chart as a PDF...

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Paycheck Protection Program Loans Summary

Summary of Loans Under Paycheck Protection Program (Section 1102) Download PDF Overview Section 1102 provides $349 billion for expedited individual loans up to $10 million through approved lenders that are guaranteed 100% by the U.S. government. The loan proceeds can be used to cover payroll support (such as employee salaries, paid sick or medical leave, insurance premiums) and mortgage, rent and utility payments incurred from February 15, 2020 through June 30, 2020.1 The maximum amount of a loan equals 2.5 months of average historical monthly payroll expenses, subject to certain exclusions. On March 31, 2020, the Department of Treasury issued preliminary guidance regarding the imminent implementation of the Paycheck Protection Program (PPP). On April 2, 2020, the Small Business Administration (SBA) issued an interim final rule providing additional implementation guidelines and requirements for the PPP. Small businesses and sole proprietorships started to apply for and receive PPP loans on April 3, 2020. Independent contractors and self-employed individuals can begin applying on April 10, 2020. The loans are first come, first served. Benefits for Borrowers: Borrowers are eligible for loan forgiveness equal to the amount spent by the borrower during an 8-week period after the origination date of the loan on...

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Treasury and SBA Begin Unprecedented Public-Private Mobilization Effort to Distribute Funds

US Treasury Press Release:            March 31, 2020 Contact:                     Treasury Public Affairs, (202) 622-2960 With $349 Billion in Emergency Small Business Capital Cleared, Treasury and SBA Begin Unprecedented Public-Private Mobilization Effort to Distribute Funds WASHINGTON – Following President Trump’s signing of the historic Coronavirus Aid, Relief, and Economic Security (CARES) Act, SBA Administrator Jovita Carranza and Treasury Secretary Steven T. Mnuchin today announced that the SBA and Treasury Department have initiated a robust mobilization effort of banks and other lending institutions to provide small businesses with the capital they need. The CARES Act establishes a new $349 billion Paycheck Protection Program. The Program will provide much-needed relief to millions of small businesses so they can sustain their businesses and keep their workers employed. “This legislation provides small business job retention loans to provide eight weeks of payroll and certain overhead to keep workers employed,” said Secretary Mnuchin. “Treasury and the Small Business Administration expect to have this program up and running by April 3rd so that businesses can go to a participating SBA 7(a) lender, bank, or credit union, apply for a loan, and be approved on the same day.  The loans will be forgiven as long as the (more…)