When the Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law on March 27, it included the Paycheck Protection Program (PPP), which was designed to help small businesses weather the COVID-19 pandemic. The popularity of the program quickly depleted available funds, leaving many businesses – including healthcare providers – looking for ways to cover their payroll.
On April 24, the Paycheck Protection Program and Health Care Enhancement Act, the second act that contained money for the PPP, was signed into law. It included $100 billion specifically for healthcare providers for expenses and lost revenue attributable to the Coronavirus outbreak. Many businesses were able to take advantage of this second wave of funds, but as the program was set to expire there were still funds available. Congress quickly passed an extension that was signed into law by President Trump on July 4, moving the final date to apply for funds to August 8.
Facilities that qualify for the PPP and have not yet applied now have more time to do just that. When the extension was signed into law, there was still more than $130 billion in allocated funds that remained unused.
According to a Revcycle Intelligence article, social assistance and healthcare providers received nearly 13-percent of the PPP loans through the end of June, or over $67.3 billion. Rules that were set in June will also help small providers with more flexibility to use funds on non-payroll expenses while easing rules on loan forgiveness and repayment timeframes.
If your facility hasn’t looked into the PPP previously, now may be the time.