Earlier today, the Small Business Administration (“SBA”) issued an updated Interim Final Rule (the “Rule”) that supplements and provides clarification on the types of businesses that are eligible for the Paycheck Protection Program (“PPP”) loans.
Under the Rule, governmental hospitals that (a) have 500 or fewer FTEs, and (b) receive less than 50 percent of their funding from state or local government sources, excluding Medicaid, are now eligible to receive PPP loans.
This is another source of relief for small governmental hospitals that could use financial assistance during the COVID-19 pandemic. We strongly recommend small governmental hospitals begin working on their application for a PPP loan as soon as possible. While the deadline to submit these applications is June 30, 2020, we know that loans are approved on a “first come, first served” basis and we do not expect the additional $310 billion in PPP funding that is included in the latest aid package to last long.
If you have any questions on the issues discussed in or related to this article, please contact:
- Jim Willey at (317) 977-1409 or jwilley@wp.hallrender.com;
- Calvin Chambers at (317) 977-1459 or cchambers@wp.hallrender.com;
- Victoire Iradukunda at (317) 429-3658 or viradukunda@wp.hallrender.com; or
- Your regular Hall Render attorney.
Hall Render’s attorneys and professionals continue to maintain the most up-to-date information and resources, which are available at our COVID-19 Resource page, through our 24/7 COVID‑19 Hotline at (317) 429-3900 or by contacting your regular Hall Render attorney.
Hall Render blog posts and articles are intended for informational purposes only. For ethical reasons, Hall Render attorneys cannot—outside of an attorney-client relationship—answer specific questions that would be legal advice.
