New Expanded Eligibility for PPP Loans
April 24, 2020
According to an interim final rule released today from the Small Business Administration (SBA), certain government-owned hospitals are eligible to apply for potentially forgivable loans under the Paycheck Protection Program (PPP). IHA urges eligible hospitals to apply quickly, as funds will likely be exhausted in the near future.
Specifically, the new guidance states on pages 6 and 7, “A hospital that is otherwise eligible to receive a PPP loan as a business concern or nonprofit organization (described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code) shall not be rendered ineligible for a PPP loan due to ownership by a state or local government if the hospital receives less than 50% of its funding from state or local government sources, exclusive of Medicaid.”
More details are available in an IHA memo.