House Democrats Propose Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act
On May 12, 2020, the House Democrats released their proposal for the next Coronavirus relief aid package, the HEROES Act (H.R. 6800). The $3 trillion package includes, among other items, increased flexibility for Paycheck Protection Program (PPP) loan borrowers and support for small businesses and associations.
Specifically, certain sections of the HEROES Act extend the covered period of the PPP loan from June 30th to December 31st, 2020 with 24 weeks to use the funding, rather than the current 8-week provision. Additionally, the bill carves out 25% of PPP funding to be used specifically for small businesses with 10 or fewer employees, and 25% of PPP funding to be used for all non-profit associations with less than 500 employees. The HEROES Act also clarifies the coordination between the Employee Retention Tax Credit and the PPP loans to ensure borrowers can take advantage of both types of assistance.
We appreciate all AAO members who have already sent messages to members of Congress this week to ask for additional flexibility for the Paycheck Protection Program. If you have not, we encourage to contact your members of Congress HERE.
On the evening of May 15, 2020, this bill was passed by the U.S. House of Representatives and referred to the Senate. While we anticipate the Senate will propose changes to the HEROES act as currently written, the AAO will continue to advocate for the inclusion of these PPP loan provisions.
With the assistance of AAO’s lobbying team at Cozen O’Connor, the AAO continues to schedule additional meetings with House and Senate offices, as well as regulatory agencies, to advocate for AAO members regarding these and other issues. The AAO will continue to advocate on behalf of its members with respect to PPP flexibility and coronavirus-related regulations at the state and federal level and will continue to keep members updated on these advocacy efforts.