Video & Story: U.S. House passes Fifth Coronavirus Stimulus Package (HEROES Act) 

WASHINGTON, D.C. – May 15, 2020 – The U.S. House of Representatives has passed the fifth Coronavirus stimulus package, H.R. 6800, the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act. Passage of the $3 trillion package came swiftly after Democratic leadership introduced the bill earlier this week.

The bill passed on a 208-199 vote.

ASA Washington, D.C. representative Bob Redding

Included in the bill are key provisions to strengthen the Economic Injury Disaster Loan (EIDL) Program and the Paycheck Protection Program (PPP) that has continued to evolve in its implementation since initially established in March under H.R. 748, the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The bill appropriates an additional $10 billion in funding for the EIDL funding. The U.S. Small Business Administration (SBA) late last week began decreasing the loan limit for the program for small businesses and blocking new applications due to the popularity of the program.

The HEROES legislation modifies the PPP including eliminating the 75/25 rule, which requires that 75 percent of the loan is used for payroll costs, while the other 25 percent can be used for rent, mortgages, or utilities. This rule was not the original intent of Congress when establishing the PPP, furthermore, many small businesses do not need to spend 75 percent on payroll.

Additionally, many small businesses are worried that their loans may not be forgiven due to a lack of guidance by SBA and the U.S. Department of Treasury. The HEROES Act will require forgiveness data collection and reporting.

Other provisions to the PPP include: