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Senate Republicans Monday began rolling out components of their proposed Phase 4 relief package – the HEALS Act (Health; Economic Assistance; Liability Protection; and Schools Act) – which includes additional assistance for small businesses through the Small Business Administration's (SBA) paycheck protection program (PPP) and 7(a) program, worker and business protections and funding for schools to reopen, as well as another round of economic impact payments to consumers among other steps.

The core of the package was initially released as a series of separate bills on Monday evening.

The small business assistance portion, the Continuing Small Business Recovery and Paycheck Protection Program Act would:

• authorize $100 billion in long-term, low-cost 7(a) loans to recovery sector businesses, including seasonal businesses and businesses located in low-income census tracts that meet certain criteria;
• allow small businesses with fewer than 300 employees that have seen at least a 50 percent reduction in gross revenues to apply for another PPP loan, though the total PPP loan amount cannot exceed $10 million;
• set aside $25 billion of PPP funds for entities with 10 or fewer employees;
• set aside $10 billion of loans to be made by community lenders; and
• create the Small Business Growth and Domestic Production Investment Facility, which would provide $10 billion in long-term debt with equity features to registered SBA Small Business Investment Companies that invest in small businesses with significant revenue losses related to the coronavirus pandemic, manufacturing startups in the domestic supply chain, and small businesses within low-income communities.

In addition, the bill would make several improvements to the PPP, including:

• expanding forgivable expenses to include covered supplier costs, covered worker protection expenditures, and covered operations expenditures;
• allowing borrowers to select a preferred eight-week period through 2020 to use the forgivable loan proceeds;
• simplifying the forgiveness application process for smaller loans (as the NAFCU-supported Paycheck Protection Small Business Forgiveness Act would do for loans under $150,000 and other changes for loans between $150,000 and $2 million);
• expanding PPP eligibility to include certain 501(c)(6) organizations; and
• establishing a specific PPP loan calculation for farmers and ranchers and provides Farm Credit System Institutions with greater certainty and equity in participating in PPP lending.

The Safeguarding America's Frontline Employees to Offer Work Opportunities Required to Kickstart the Economy (SAFE TO WORK) Act would:

• help essential businesses that have remained open to stay open, and help other businesses to reopen safely by providing liability protections from lawsuits related to the pandemic;
• assist schools, colleges, and universities with reopening in the fall;
• encourage and protect workers who return to their jobs by rewarding compliance with coronavirus-related public health guidelines; and
• ensure that bad-faith actors are held accountable for coronavirus-related related injuries.

With the release of the Senate Republican proposal, congressional leaders are now working to get a bipartisan agreement on a relief package that can pass both chambers before the August recess. The House previously passed its proposal – the HEROES Act – and NAFCU last week shared its feedback at a hearing on the bill and outlined additional provisions credit unions would like included in the final package enacted into law.

The association will continue to advocate for credit union priorities to be included in the final Phase 4 package; stay tuned to NAFCU Today for the latest developments.