AHA urges SBA to ensure hospitals can participate in CARES Act loan program
The AHA today urged the Small Business Administration to ensure that small- and mid-size hospitals are allowed to apply for and receive loans under the SBA Paycheck Protection Program that was established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Specifically, AHA asked SBA to either issue guidance stating that small- and mid-size hospitals and related health care providers are eligible to apply for and receive PPP loans and are not subject to affiliation requirements, or issue regulations waiving affiliation requirements to apply for and receive PPP loans.
In addition, AHA asked SBA to waive regulations that would prevent hospitals and health systems with a prior loss to the government (including bankruptcy) from being eligible for these loans. 鈥淭hese organizations form the backbone of the health care and workforce infrastructure in many communities, and the PPP could be the difference between solvency and insolvency,鈥 AHA said.