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Information From Congressman Rodney Davis


Small Business Administration (SBA) Payment Protection Loans

  • Provides $350 billion to create a new Payment Protection Loan program which provides loans to small businesses and 501(c)(3)’s with less than 500 employees, sole proprietors, independent contractors, and self-employed individuals.
  • These loans are 100% backed by the federal government with an interest rate of 4%.
  • Loan amounts will be based on 2.5 times the average monthly payroll of the business or $10 million, whichever is less.
  • Lenders are given delegation authority meaning these loans can be in the hands of small businesses without time consuming SBA authorization.
  • The program provides for automatic deferral of principal, interest, and fee payments for the first six months.
  • Amounts used to cover payroll costs, mortgage interest payments, rent, and utility bills over an 8-week period will be forgiven if the business retains employees
    • Forgiveness is reserved for employers that maintain payroll continuity from February 15, 2020 through June 30, 2020.
    • Flexibility is granted for businesses to rehire individuals already laid off and still be eligible.
    • Failure to maintain payroll continuity does not immediately disqualify forgiveness, instead, if employee numbers decrease the forgiven amount is reduced proportionally based on the prior year’s headcount.
    • Businesses will work with lenders to establish that it met payroll requirements, at which time the federal government will purchase the loan.
  • For franchisees in the hospitality and food industries, the loan is available at the store/location level – allowing more small businesses to qualify.
  • Individuals who have received an SBA Economic Injury Disaster loan may refinance into this new program.

Unemployment Insurance

  • Creates the temporary Pandemic Unemployment Assistance program to provide federal unemployment coverage for individuals traditionally not eligible for unemployment assistance
    • Includes self-employed and independent contractors
    • Available through December 31, 2020 to individuals unable to work due to the Coronavirus.
    • Calculated based on each state’s average unemployment benefit.
  • Pays states to cover 50% of the costs incurred through December 31st, 2020 for expenses related to providing unemployment benefits to government, nonprofit, and tribal workers.
  • Provides an additional $600/week to individuals receiving unemployment insurance or payments under the Pandemic Unemployment Assistance program – up to 4 months.
  • Individuals who have exhausted state unemployment benefits, are eligible for an additional 13 weeks of federal benefits.


Economic Stimulus

  • Up to $1,200 in economic recovery checks to individuals ($2,400 for joint filers) with an additional $500/dependent.
    • Income eligibility based on 2019 returns if filed, or 2018 if unfiled:
      • Individuals with AGI below $75,000 are eligible for $1,200.
      • Joint Returners with AGI below $150,000 are eligible for $2,400.
      • Phases out above these thresholds until eliminated at $99,000 for individuals and $198,000 for joint returners.
  • Waives the 10% early withdrawal penalty for distributions from qualified retirement accounts (up to $100,000) to cover coronavirus-related expenses.
  • Waives the required minimum distribution rule for 2020.
  • Permits a 2020 $300 above-the-line deduction for charitable donations.
  • Incentivizes businesses to pay down student-debt by providing a tax-free benefit (up to $5,250) for both the employer and employee.
  • Provides a refundable payroll tax credit for businesses equal to 50% of wages paid during the COVID-19 crisis.



  • $100 billion for hospitals to keep their doors open to cover cancelled elective operations and declining visits unrelated to coronavirus.
  • $1.32 billion for community health centers.
  • Expands Health Savings Accounts (HSA) to cover telehealth services related to COVID-19, and HSA and Flexible Spending Accounts for over-the-counter products.
  • Allows Medicare reimbursement for telehealth services provided by Federally Qualified Health Centers and Rural Health Clinics during the COVID-19 response period and allows for reimbursement when seen by a new doctor.
  • Increases Medicare reimbursement for COVID-19 patients by 20%.
  • Extends Community Health Center funding through November 20, 2020.




  • Defers federal student loan payments for 6 months (through September 30, 2020).
  • Provides $30.9 billion to create an Education Stabilization Fund to assist elementary, secondary, and higher education institutions.



Economic Stabilization Fund

  • Provides $500 billion to the Treasury Department to assist severely distressed industries through loans.
    • Includes a $25 billion set-aside for passenger air carriers, $4 billion set-aside for cargo air carriers, $17 billion for businesses vital to national security, and $454 billion for other industries.
    • Loans under this program are reserved for businesses unable to receive lending through other means and limited to a 5-year maximum life. Additionally, businesses accepting loans must retain at least 90% of their workforce (as of March 24, 2020) through September 30, 2020 and must be a U.S. domiciled business.
  • Businesses that accept assistance are prohibited from buying back stock and increasing the compensation of employees making more than $425,000.
  • Prohibits businesses from receiving assistance if anyone owning a 20% interest in the business is the President, VP, head of an executive branch department, Member of Congress, or any such individual’s spouse, children, or son/daughter-in-law.
  • Provides $25 billion in grants to passenger air carriers, $4 billion for cargo air carriers, and $3 billion for airline contractors, to cover employee wages, salaries, and benefits.
    • Prohibits stock buy backs through September 30, 2020, and freezes compensation for employees earning over $425,000 for two years.
    • Provides the Secretary of Treasury the ability to collect stocks and other such financial instruments in lieu of payment for the grants.



Coronavirus Relief Fund

  • Provides $150 billion for State and Local governments through direct payments to cover expenses related to COVID-19.
  • Amounts/State based on the state’s relative population but no less than $1.25 billion.



Federal Assistance to Illinois

  • Illinois has either received, or will receive shortly, the following list of PPEs from the Centers for Disease Control (CDC) Strategic national Stockpile
    • N95s – 246,860
    • Surgical Masks – 588,066
    • Face Shield – 111,978
    • Surgical Gowns – 91,299
    • Coveralls – 467
    • Gloves – 325,082


  • The Department of Health and Human Services (HHS) has provided nearly $3.7 million to Community Health Centers as appropriated by Phase I legislation.
  • HHS has provided nearly $28 million to the State to contain the spread of COVID-19 as appropriated by Phase I legislation.