Tipton to SBA: Expand Paycheck Protection Program to Rural Health Facilities

Statement

Congressman Scott Tipton (CO-03) sent a letter to Jovita Carranza, Administrator for the Small Business Administration, requesting that Critical Access Hospitals (CAHs) and Rural Health Clinics (RHCs) be made eligible to receive loan assistance through the newly created Paycheck Protection Program.

The letter addresses a concern brought to forward from CAHs and RHCs that misinterpretation of the Coronavirus Aid, Relief, and Economic Security (CARES) Act could cause them to be ineligible for assistance. The letter reads in part:

"The CARES Act, which was signed into law with our support on March 27, 2020, included essential lifelines for struggling businesses, and it is critical SBA ensure that those programs can be used to support our rural hospitals and clinics. We have heard concerns that SBA is interpreting the CARES Act language in such a way that would preclude CAHs and RHCs whose facilities are owned or operated in some way by the district or county that they serve as being ineligible for certain assistance, particularly the Paycheck Protection Program.

Should the SBA interpret the language this way, it would negatively impact 23 of Colorado's 32 CAHs and numerous RHCs throughout the state. Prior to the novel coronavirus (COVID-19) pandemic, 18 rural hospitals in Colorado operated in the red and their cash flow problems have become increasingly dire as CAHs and RHCs have been forced to cancel elective procedures, their main source of revenue."

Tipton provided the following statement in conjunction with the letter:

"It's bad enough that rural health care providers are still fighting to receive additional personal protective equipment so they can provide care to patients. Added fear that many employees won't keep their jobs amid a public health crisis is unacceptable. I appreciate what the Small Business Administration is doing to quickly address immediate needs of businesses all over the country, but our greatest urgency is continued attention to healthcare workers and this issue must be resolved immediately. Under normal circumstances, many healthcare centers and hospitals in rural areas struggle to meet the demands of their communities with limited resources, and this sudden influx of sick patients adds significant pressure to an already tough situation."

The letter was also signed by Colorado Congressmen Ken Buck, Doug Lamborn, Joe Neguse and both U.S. Senators.

Source